The French property market has seen increased activity in September with international buyers taking advantage of the all-time low mortgage rates. Non-resident property buyers can now take advantage of a 25 year fixed rate at 3.75% or a variable rate of 2.70% for the same period.
In addition, the bond buying scheme announced by Mario Draghi, president of the European central bank, has had a stabilising effect on the French property market which also has influenced the interest in property purchases.
The new capital gains taxes and income taxes have on the other hand not affected the market at all. The net effect is that capital gains will come down to 0% after 22 years and the new income taxes are mainly affecting unfurnished letting properties.
Forecasts are that interest rates will remain low and and as domestic demand for properties in France is decreasing, overseas buyers may find that this may be the best opportunity in a long time to purchase French real estate.