Property price drops all owners who want to get rid of annoying square meters as soon as possible are afraid. We sympathize with your financial loss, but not entirely sincerely, because such a fluctuation in the market will only benefit investors. If you have long been thinking about buying an apartment within walking distance of the Louvre, and the idea of breakfast with croissants and strong coffee seems like the limit of your dreams, it's time to reach for your wallet. Since 2023, the cost per square meter in France has gradually and inevitably started to decrease. This trend is still ongoing, but everything can change at any moment. Don't rely on luck and start looking for an apartment to your liking. Even if you can't live in it right now, it will be an excellent way to quickly recoup your investment and start multiplying it. Have you figured out how?
French chic with a yield of 6%
Of course, not every street yield reaches covetedYour profit and return on investment directly depend on the location and the property. By the way, if a 6% rate doesn't tell you much, let's convert it into a more understandable measurement. You will fully recoup your investment and start earning new income just under 17 years after renting out the apartment. This is an impressive result. For comparison, yield in Latvia is 8.06% (12.4 years), which is the best indicator in the world today.
So, where in France can you find real estate with a record yield of 6%?
- City of Brest (Finistère department) - 6% 💰
A picturesque town, steeped in historical charm, is located in western France, 240 kilometers from Rennes. It can be found on the western part of the Brittany peninsula. The main feature of the area is its access to the Atlantic Ocean. Sandy beaches and a lighthouse are included. Brest Bay amazes with its beauty and unusual landscapes, uncommon for France.
- Aubervilliers (Saint-Denis district) - 6.5% 💰
The northern suburb and commune of Paris. To the west flows the Canal Saint-Denis, making Aubervilliers a picturesque location popular for boat trips. The advantageous location and natural features of the area give Parisians exactly what they desire - the seclusion of a suburb within walking distance from the city center. Low-rise buildings dominate both in historic neighborhoods and among modern residential complexes.
- Villeneuve-Saint-Georges (Val-de-Marne department) - 6.8% 💰
The city is located on the Seine, which already speaks of its advantageous location and the beauty of the landscapes outside the window. The road to the southeast of Paris stretches only 16 kilometers, so you can reach the center in just a few minutes by car or public transport. Since the 9th century, Villejuif-Saint-Georges has been famous for its developed agriculture and winemaking. Currently, the average cost of a two-bedroom apartment in the town is €125,000. The rent for such a beauty will be approximately €700 per month. It will only take 15 years for the investment to fully pay off.
Side expenses of homeowners
Because of taxes, profits always melt before our eyes, but unfortunately, we cannot do without them. If you are planning to rent out your property, you will have to pay a certain percentage to the state. Homeowners in France are no exception and are required to share their money. The amount and type of tax depend on the rental period and residency in the country.
- 14-45% must be paid by residents of France. Such a large percentage range is explained by differences in the overall annual income from real estate. The final percentage is calculated individually.
- Non-residents will have to pay 20% of the profit. This category of owners is subject to a fixed interest rate, which is very beneficial for us as citizens of Ukraine.
In addition to standard taxes, you will also have to pay 17.5% of your profits as a social contribution. The amount is fixed for everyone, so there is no way to avoid it, although there is a trick. If you are tied to the social security system in any other European country, you are completely exempt from paying this special fee.
If you still have doubts about it, Is it worth paying taxes, think again. Non-residents are always treated with great attention, so your manipulations will definitely not go unnoticed.