1. Timing – Today’s economic climate offers potential buyers some incredible bargains. With the French market trailing the UK market trends by six months or more, it is interesting to note that the UK market already showing some signs of recovery in May and June with slight house price increases. The question is how long will it be before French house prices begin also to rise again.
2. Finance – Mortgage rates are at an all time low and although lending criteria has inevitably tightened, fantastic deals can be struck with the banks by clients with strong dossiers.
- Fixed for term below 4% and variable rates available below 3%.
- Loans 85% of the net purchase price available at 3.25%.
- Terms of between 10 and 40 years, lending up to 80 years of age.
3. Choice – with the largest amount of choice available owing to the imbalance between supply and demand, there has never been such a great choice of market availability. As we are witnessing numbers of sales increasing, this level of choice will inevitably decrease. Vendors – seem at last ready to accept sensible offers as they seem confident that they will in turn be getting good value for money as future buyers. Chateaux available for as little as 500,000 GBP, detatched houses to renovate have been seen again for as little as 25,000 GBP. We are doubtful if prices will fall any further than this.
4. Buyer’s Market – a combination of events come together to make, for the few who can buy at the moment, the Summer / Autumn 2009 one of the greatest opportunities to reinvest into the French property market in the last decade
5. Stability – exchange rates, like interest rates, seem at last to be stable – settling between 114 and 120. This looks as if it will be the trend until the end of 2009.