French mortgage rates at historic lows

14 June
There has never been a better time to purchase a French ski property using a French mortgage. Mortgage interest rates for French property are now at new historic all-time lows with 20 year tracker mortgages at 2.20% and 20 year fixed rate mortgages at an incredible 3.55%. Loan-to-values of up to 85% are achievable meaning as little as 15% deposit is required.Nicholas Leach at Athena Advisors commented:“France’s socialist government has now been in power for 7 months and it continues to implement pro-growth measures and clarify its initially confusing position on taxes. This combined with historical low interest rates set by the European Central Bank and the very attractive French mortgages available is resulting in increased investor activity in the property market. Fixing a mortgage at such a low rate enables international buyers to lock in a huge amount of value and in many cases the rental returns provided by ski properties for example cover a large part or all of the mortgage payments. High loan-to-value ratios also mean that only small deposits of 15% are required…”Athena Advisors is currently marketing a range of classic freehold and leaseback properties in some of France’s most prestigious ski resorts across the Three Valleys, Portes du Soleil, Espace Killy and Paradiski ski areas. Leaseback properties, whereby a buyer purchases the freehold title of a furnished property and then leases it back to a management company for a fixed rental return, provide buyers with a cost effective way of owning a ski property.“Leaseback properties have been popular for a long time but with today’s mortgage rates and the competitive prices available on the market, ski leasebacks have never been so popular,” added Leach. “As long as the management company is of strong credentials, leaseback properties provide international investors with a cost effective way of owning a ski property.”“Ski apartments with rental returns of up to 4.7% are currently available in some of the Alps best ski resorts,” continued Leach. These returns provide buyers with stable and consistent income which can cover their mortgage payments. Leaseback properties also enable purchasers to recover 19.6% VAT on the price of the property and provide low-cost holidays for those who want to use their home during the ski and summer seasons.”Athena Advisors is currently marketing a range of well located ski apartments and chalets for sale Val d’Isere, Les Gets and more. Prices for ski apartments start from €155,000 with chalets starting from €492,000.

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