Posted on 30 December 2016
Economic conditions within the French property market are set to align like your well-honed parallel turns, to provide a perfect snow storm of rising property prices and low borrowing costs. Making 2017 a great year to finally prove that owning a home in a winter wonderland isn’t the preserve of the rich and famous.
Yes you want house prices to be at a level that enables you to afford that ski retreat in the French Alps you’ve pined for all these years, but buying a property overseas should be viewed as a long-term investment. After all you don’t want your alpine dream to become a financial burden. So try your best to put thoughts of hurtling down black runs and indulging in après-ski activities to the back of your mind, and consider how much your perfect property might be worth in the future.
Thankfully, the trend of falling French property prices seems to have finally skidded to a halt and started heading uphill again. Having increased by 0.5% in 2016, prices are forecast to rise by around 2% for apartments and 2.7% for houses in the coming year. In fact price rises in the Alps could even outstrip the national average. The region’s property market is almost bullet-proof thanks to its spectacular setting and world-class ski resorts, consistently performing despite financial and political turmoil – and there’s been plenty of that in recent months. Making your investment in bricks and mortar there a very sound one indeed.
If rising property prices makes you worry a home in the French Alps will become unaffordable, the good news is that we are living in a world of low interest rates – making borrowing money far cheaper. The Eurozone is a prime example of such favourable conditions for overseas property buyers, driving a surge of residential real estate sales in France, as high as the market has seen in nearly a decade. If you can capitalise on these low mortgage rates, you could swell your budget. You may even be able to afford an extra bedroom or even upgrade from an apartment to a chalet as a result.
If one of your New Year’s resolutions is to be bold and finally buy somewhere from which you can ski to your hearts content in the French Alps, then your timing couldn’t be better. You’ll be entering a market that provides potential for your investment to grow in value, while still allowing you to afford your dream purchase in the first place.