{"id":51718,"date":"2021-10-15T16:11:52","date_gmt":"2021-10-15T14:11:52","guid":{"rendered":"https:\/\/www.ovonetwork.com\/blog\/?p=51718"},"modified":"2022-04-25T04:13:29","modified_gmt":"2022-04-25T02:13:29","slug":"investment-property-and-loans-in-the-french-alps","status":"publish","type":"post","link":"https:\/\/www.ovonetwork.com\/blog\/investment-property-and-loans-in-the-french-alps\/","title":{"rendered":"Investment Property and Loans in the French Alps"},"content":{"rendered":"\n

Thinking about investing in a property in the French Alps, but not sure which loan you can and should take? Are you interested to see how Brexit might impact the purchase of a property in the French Alps? You\u2019re not the only one! <\/strong><\/p>\n\n\n\n

We know these are frequently asked questions amongst first-time investors, especially those who are not French natives. So, we\u2019ve teamed up with our expert partners to find out more about investment property and loans in the French Alps. Read on to see what they have to say\u2026<\/strong><\/p>\n\n\n\n

\n\n\n\n

In this article, we\u2019ll be hearing from our trusted partners\u2026<\/p>\n\n\n\n

\n
\n

Gareth Jefferies<\/strong>
-Alpine Property<\/em><\/p>\n\n\n\n

Visit their website\u00a0here<\/strong><\/a>.<\/p>\n\n\n\n

\"\"<\/figure><\/div>\n<\/div>\n\n\n\n
\n

Sarah Watts<\/strong>
-Alpihome<\/em><\/p>\n\n\n\n

Visit their website\u00a0here<\/strong><\/a>.<\/p>\n\n\n\n

\"\"<\/figure><\/div>\n<\/div>\n\n\n\n
\n

Mien Krooglik<\/strong>
\u2013 Nexalia<\/em><\/p>\n\n\n\n

Visit their website\u00a0here<\/strong><\/a>.<\/p>\n\n\n\n

\"\"<\/figure>\n<\/div>\n<\/div>\n\n\n\n
\"\"
\n

What are the different types of loans available for buyers?<\/strong><\/p>\n<\/div><\/div>\n\n\n\n

Gareth Jefferies<\/strong>
-Alpine Property<\/em><\/h4>\n\n\n\n

\u201cFrench clients will usually use a local bank and if they need a mortgage it will be a fixed rate.<\/em>\u00a0However, they are less likely to need a mortgage. This will usually be a cash purchase.<\/em><\/p>\n\n\n\n

Of the Brits that are looking, about 30% currently take a loan. Only 20% actually need it though. That other 10% could buy cash but are attracted by the low interest rates.<\/em><\/p>\n\n\n\n

Since Brexit, finding someone willing to make the loan has become harder. Not impossible, but harder. We would advise approaching a broker.<\/em>\u201d<\/p>\n\n\n\n

\n\n\n\n

Sarah Watts<\/strong>
-Alpihome<\/em><\/h4>\n\n\n\n

\u201cI tend to recommend\u00a0BNP Paribas<\/a>\u00a0international buyers. They specialise in Non residents so are perfect for our overseas clients.<\/em><\/p>\n\n\n\n

For clients such as American based ones, who traditional banks will not lend to, I would suggest a specialist broker.<\/em><\/p>\n\n\n\n

For French clients, they tend to go to their local branch or will do the rounds of the banks themselves so I don\u2019t normally offer much advice.<\/em><\/p>\n\n\n\n

The Swiss too have access to some low rate mortgages so they often finance with Swiss banks.\u201d<\/em><\/p>\n\n\n\n

\n\n\n\n

Mien Krooglik<\/strong>
\u2013 Nexalia<\/em><\/h4>\n\n\n\n

\u201cWe are finding that certain banks in France are still lending to non residents and on favourable terms. The applicant will need to go through a strict lending criteria however can then benefit on the low interest rates that we are currently seeing. Over the years we have formed a strong network of both national and local banks that we recommend depending on the client profile.<\/em>\u201c<\/p>\n\n\n\n

\n\n\n\n
\n
\n Discover properties for sale in the French Alps<\/a>\n <\/div>\n<\/div>\n\n\n\n
\"\"
\n

Do the same buyers look at apartments and chalets or do they mainly stick to one of the other?<\/strong><\/p>\n<\/div><\/div>\n\n\n\n

Gareth Jefferies<\/strong>
-Alpine Property<\/em><\/h4>\n\n\n\n

\u201cOne or the other. And also they split into \u201call year round\u201d and \u201cjust ski\u201d, the all year round people are in the ascendance, and they look for outside space \u2013 which leads them to chalets and out of town.<\/em>\u201c<\/p>\n\n\n\n

\n\n\n\n

The typical buyer has around 200-350K to spend on a 2 bedroom apartment in the French Alps. Those with a 500-600K budget might be open to an apartment set up, but it tends not to be a traditional one in a building with a balcony and 4\/5 bedrooms, but rather something like a \u2018demi farm\u2019 which is classed as a \u2018coproperty\/apartment\u2019 but feels more like an individual home<\/em>.\u201c<\/em><\/p>\n\n\n\n

\n\n\n\n

Mien Krooglik<\/strong>
\u2013 Nexalia<\/em><\/h4>\n\n\n\n

\u201cA few years ago, there was a distinct line with regards to buyers\u2019 requirements. They either wanted a chalet OR<\/strong> they wanted an apartment. These days we have adapted our construction designs keeping in mind the buyer trends and requirements. <\/em><\/p>\n\n\n\n

We are designing apartments which are adapted to each individual buyer for both personal usage as well as rental. Therefore we are now seeing buyers now considering both.\u201d<\/em><\/p>\n\n\n\n

\"\"
\n

Has the English market been impacted since Brexit?<\/strong><\/p>\n<\/div><\/div>\n\n\n\n

Gareth Jefferies<\/strong>
-Alpine Property<\/em><\/h4>\n\n\n\n

\u201cVery much so. Our sales to the UK market have halved, to the French they have trebled. We expect some bounce back, and in fact, there are plenty of reservations for viewings in the upcoming autumn holidays.\u201d<\/em><\/p>\n\n\n\n

But Brexit is nibbling away at the demand. Not being able to spend more than 90 days in a year is one thing, the difficulty of retiring to France another, the difficulty of working in France, another, the reduction in the number of available mortgages\u2026.the list goes on. They are all nibbling away at demand from the UK. <\/em><\/p>\n\n\n\n

Some things in favour \u2013 wanting to get away from a country that some people are feeling disappointed by. A slow increase in the value of the pound. Some people have benefited from COVID and have money to spend.\u201d<\/em><\/p>\n\n\n\n

\n