Comprehensive assistance for buy-to-let investors in the South of France
James Properties France can assist you in creating a healthy property portfolio in the dynamic environment of the south of France. The rental market in a number of towns and cities across the region is very buoyant, from studio through three bedroom apartments to houses. Resident in France since 1995, Neil Parkinson of James Properties France (JPF) can assist you with all the phases involved in financing and managing a property portfolio in the south of France. Based in Montpellier, the vibrant capital of the Languedoc where the buy-to-let market is particularly robust, Neil has extensive experience of dealing with the French market and can serve as your sole point of contact from the start and continuously throughout, liaising with solicitors, estate agents, accountants, tax authorities and tradesmen.
A dynamic region
The Languedoc region, say the French press - contrary to many other regions of France - is still in a state of shortage of rentable property. Rents and property prices are progressively rising meaning ripe conditions for very satisfactory returns. National statistics show a steep inward migration to the region and forecasts indicate that this phenomenon is not likely to slow. Montpellier, a small provincial town till the 1960s has become a considerable city, central in the development across the region, spurred in part by its vast university facilities. Local authorities show great ambition: the creation of research poles and investment by large enterprises including IBM, DELL and Sanofi to name but a few has lead students to pursue careers locally. New leisure and sales outlet facilities, and investment in housing, tourism, logistics and the transport infrastructure are just part of the ongoing projects that concern the region presently.
Buy-to-Let in France: how it works and how James Properties France can help
- Choosing a property involves buying the right property in the right place and at the right price. In the case of an apartment, careful consideration of the condition of the apartment and ensuring that the apartment block is well managed and well maintained are important steps to avoid unforeseen expenses. The ease with which a property can be sold after a number of years is another consideration. JPF can help you with these steps along with negotiation of the price.
- Financing and insuring a property - if you wish to finance the property through a French lending institution, JPF can shop around for you, propose different options and take care of all formalities. Important considerations include choosing the appropriate repayment duration to minimise interest yet retain a feasible cash flow. In France the cost of borrowing money includes interest, a mortgage request fee, repayment guarantees and life insurance. This will be a good basis for comparison between lending organisations but you may also consider those that provide insurance packages covering for the eventuality of unpaid rent.
- Choosing a management agency - by mandating a reputable agent to look after the day-to-day property management, you relieve yourself of tasks that are difficult to undertake at a distance. Services provided by the agent include actively seeking and selecting a tenant, completing contracts with tenants, seeking quotes for repairs and maintenance and instructing tradesmen to carry out work, cashing rent cheques and providing tenants with receipts, settling property co-ownership fees etc. Agency fees tend to be 6% to 7% of the rent. JPF is on hand to guide you to the most reputable and appropriate agents.
- Carrying out a continual analysis of income and expenditure. A good investment, like a good business, is one where there is a good cash flow. Ideally one would achieve a break even where incoming rent is equal to all outgoings. However if expenditure exceeds income then you need to be prepared to invest additional cash to keep the investment afloat, at least in the beginning while the rent progresses. JPF is on hand to help you make accurate forecasts of your outgoings.
- Completing legal requirements like tax returns. Summarising succinctly the income and expenditure of your property is a pre-requisite for an accountant to fill out your tax return. JPF can help you carefully consider all aspects pertaining to the property and related expenditure in order to minimise your tax liability and carry any deficit over to future years.
Cost:
JPF charges an hourly rate of 50€ (inclusive of VAT) for all tasks and travel fees where applicable.
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