A SUPERB INVESTMENT
A thriving tourist industry & stable economy
Apart from the obvious lifestyle benefits of owning a property in this luxury residence this really stacks up as a solid investment.
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France is a secure economy and politically stable
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Despite the turbulence in the world economy property prices in France continue to make steady increases as people regard French property as a safe place to put their money. FNAIM's report indicates that prices rose 3.2% on average across France from the 3rd quarter 2018 to the 3rd quarter 2019.
This is in part due to the strength of the French economy (it is the 3rd largest economy in Europe with a GDP of $2.58 trillion, following Germany at $3.68 trillion and the UK at $2.62 trillion as of 2017) but also largely due to the strict lending criteria of the French banks. This means that those who have taken out mortgages in France have been able to afford them as they continue to base their lending criteria on the financial status of the buyer; buy-to-let mortgages and self-cert mortgages, both of which have caused many of the problems elsewhere with their loose lending criteria have been avoided by the French banks.
The result of which has been more robust property prices and the continuation of high loan to value mortgages close to 90% with low interest rates from around 1.3% and with the ability to fix the mortgage interest for 20 years.
The political and legal stability in France also gives investors the confidence to invest in property in this country where the risk is low and the buying process is the most transparent and safe in all of Europe and probably worldwide. It is for this reason that so many people use property investment in France as a safe haven for their assets.
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Rental demand in France and in the region
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France is the most popular tourist destination in the world with over 89.4 million tourists in 2018 alone. This is due to a number of key factors including excellent transport links and infrastructure, an unrivalled lifestyle envied by many of its neighbouring countries, a rich and diverse culture and history, a good climate and a varied landscape from the mountains to the seaside offering many different leisure activities. This leisure industry contributed to 9.4% of a GDP amounting to $2.58 trillion in 2017.
The department of Charente-Maritime is the 3rd most popular tourist department in France and within this region the relatively small area along the coast, centred on Royan called the “Pays Royannais” is by far the most popular with most of the visitors of the entire region per year supporting a thriving tourist industry here.
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There are only two residences in the entire area around Royan that have luxury villas with private pools with onsite rental management. One of them is La Foret d'Armotte and the other is in La Palmyre about 8km away where the villas are selling for well over 1m Euros and charging proportionately higher rent. La Foret d'Armotte therefore takes advantage of the lack of accommodation in the higher end of the market while still charging affordable rents to guests.
Low or zero taxes
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See our zero tax page. You will see how very little or no income tax should be due on your rental income and also how capital gains tax reduces from 37.2% to zero over a 30 year period. In addition you will receive back all the VAT included in the purchase price if you sign a rental management agreement with Avecoeur.
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​Excellent finance options
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Subject to some income level criteria, a French bank will lend up to 80% of the purchase price of the property and interest rates are currently more favourable than in the UK. French laws allow investors to off-set their income tax liability against mortgage interest repayments, notary fees and amortisation of the property.
A clear exit strategy
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As you are the freehold owner of your property, you are entitled to sell your property at any time either classic or with a management & letting agreement. This great flexibility means that you can sell to either someone looking for a permanent home, a holiday home, an investment or a mixture of the last two meaning the market you are selling to is not limited to a specialised sector making selling your property easy. You can sell it through local estate agents, international agents, property investment companies or privately. An on-site re-sales network will also be put in place where purchasers may sell their properties to potential resort guests which is often the way people buy holiday homes and investment properties. In fact we expect demand to be so high that there to be a waiting list from these guests wishing to buy in the resort.
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A solid medium-to-long-term investment
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This residence is suited for low risk investors seeking a hassle free, long term investment or to create capital and a rental income for retirement. All mortgaged properties in France have a life policy attached to it making the scheme even more interesting for your dependants. This is a perfect alternative to pension funding due to the stable nature of the investment and because there is currently a shortfall of 4 million accommodations in France you can expect a solid capital growth over the years.