France may never be better value than it is now. Prices are steady at present but liable to go sharply higher as spring approaches due to borrowing in France being cheaper than ever for French tax payers because of new MIRAS-style tax breaks taking effect, as well as inheritance tax changes, which have freed up the market. Now is definitely the time to snap up an investment!

This advice is backed up by recent research, by the University of Paris – Dauphine (Economics); which shows that nearly half of house hunters looking to buy in France are still attracted by the good value property prices.

France has traditionally been a country that has offered overseas investors excellent value for money along with the safety and security so many are looking for, with low crime figures especially in rural areas. The survey shows that this French reputation for good value property still holds true, now more than ever.

In France, the situation regarding fixed rate mortgages is quite different – the French have always preferred and, indeed, still prefer a fixed rate for the entire term of the loan, which could be up to 30 years, depending on the age when the mortgage is taken out. And this is despite French banks encouraging them to take out a variable rate mortgage, or what in France they call ‘cape 2%’, which is similar to the UK and less risk for the bank.

It must be said that French people do not move as frequently as the British and US and they tend to plan for the longer term. They do not like interest only mortgages and prefer to pay off
the capital - a very different mentality.

We saw levels of interest right up until the end of 2007, showing that the slowdown in the other market does not seem to have impacted upon the strength of demand. January figures
show a 70% increase in investment over 2007 and the market seems to have escaped the worst of the sub prime fall-out in the USA.