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Property investment in France

A superb investment

Property investment in France doesn't get better than this

Why invest in a property at La Forêt d’Armotte in France? Apart from the obvious lifestyle benefits of owning a property in this luxury residence this really stacks up as a solid investment.


Click any of the headings below to read more on each one:


France is a secure economy and politically stable

Despite the turbulence in the world economy property prices in France continue to buck the trend of most other world destinations as people regard French property as a safe place to put their money. Knight Frank’s report indicates that prices rose 6.7% from the 3rd quarter 2010 to the 3rd quarter 2011.


This is in part due to the strength of the French economy (it is the 2nd largest economy in Europe behind Germany) but also largely due to the strict lending criteria of the French banks. This means that those who have taken out mortgages in France have been able to afford them as they continue to base their lending criteria on the financial status of the buyer; buy-to-let mortgages and self-cert mortgages, both of which have caused many of the problems elsewhere with their loose lending criteria have been avoided by the French banks.


The result of which has been more robust property prices and the continuation of high loan to value mortgages close to 100% with low interest rates while most other nations such as the UK have withdrawn many of the high finance mortgages and imposed high interest rate charges for all except the most wealthy buyers with large cash deposits at their disposal.


The political and legal stability in France also gives investors the confidence to invest in property in this country where the risk is low and the buying process is the most transparent and safe in all of Europe and probably worldwide. It is for this reason that so many people use property investment in France as a safe haven for their assets.



Rental demand in France and in the region

France is the most popular tourist destination in the world with over 78.95 million tourists in 2010 alone. This is due to a number of key factors including excellent transport links and infrastructure, an unrivalled lifestyle envied by many of its neighbouring countries, a rich and diverse culture and history, a good climate and a varied landscape from the mountains to the seaside offering many different leisure activities. This leisure industry contributes to a GDP of $2.58 trillion which translates to GDP per capita of $33,100 in 2010 making it the fifth largest economy in the world.


The region of South West France along the Atlantic coast from Bordeaux to La Rochelle has a strong tourist demand with 3.8m visitors to the region of Poitou-Charentes in 2010, of which the Charente Maritime department (which Saint Augustin-Sur-Mer is part of) accounted for 78% whilst the other 3 departments that make up the region together accounted for just 22% showing how popular this area of Poitou-Charentes is. In fact the Lonely Planet guide 2012 puts the Poitou Charentes region among the top 10 destinations in the world! Within this region the relatively small area along the coast, centred on Royan called the “Pays Royannais” is the most popular with 35% of the visitors of the entire region per year supporting a thriving tourist industry here.



Low taxes

Non-resident owners of French property are liable to income tax of 25% though French tax rules allow investors to off-set this liability against several factors including French mortgage interest repayments, notary fees and depreciation of the property. (*Please seek independent advice for verification).

Normally there would be no or very little income tax to pay because if you are taking a mortgage you can offset your interest payment (and any other costs) against your rental income.


Capital gains tax is just 19% for non-residents (which depreciates to zero over a 30 year period) and because there is a double-tax treaty between the UK (and many other countries) and France you will not pay tax twice.



Excellent finance options

Subject to some income level criteria, a French bank will lend up to 80% of the purchase price of the property and interest rates are currently more favourable than in the UK. French laws allow investors to off-set their income tax liability against mortgage interest repayments, notary fees and amortisation of the property.



Great prospects for capital growth
Put simply the properties that always do the best when it comes to capital growth are those in a top location with high specifications and services. If the property is unique then this further enhances its potential for capital gains. Fortunately La Forêt d’Armotte fulfils all of these requirements and more; there will quite simply be no other residence in the whole of the region (and possibly the whole of France) that will have anything like the kind of specifications and services that you will find in this 5*****resort. Additionally there are only 20 properties on this development which contrasts strongly with most other holiday residences which often have between 150 and 500 properties on them. Apart from clearly putting less strain on the services it also marks this out as a boutique resort available only to the exclusive group who buy and rent here and as such the resale demand for properties on this residence will be very strong which will likely cause a significant uplift in the prices of these properties over the years.


A clear exit strategy
As you are the freehold owner of your property, you are entitled to sell your property at any time either classic or with a management & letting agreement. This great flexibility means that you can sell to either someone looking for a permanent home, a holiday home, an investment or a mixture of the last two meaning the market you are selling to is not limited to a specialised sector making selling your property easy. You can sell it through local estate agents, international agents, property investment companies or privately. An on-site re-sales network will also be put in place where purchasers may sell their properties to potential resort guests which is often the way people buy holiday homes and investment properties. In fact we expect demand to be so high that there to be a waiting list from these guests wishing to buy in the resort.


A solid medium-to-long-term investment

This scheme is suited for low risk investors seeking a hassle free, long term investment or to create capital and a rental income for retirement. All mortgaged properties in France have a life policy attached to it making the scheme even more interesting for your dependants. This is a perfect alternative to pension funding due to the stable nature of the investment and because there is currently a shortfall of 4 million accommodations in France you can expect a solid capital growth over the years.



Informative downloads:

CLICK HERE to download a PDF of our

Construction Company Completion Guarantee.