Returns from Rental Property in France
Contrary to popular belief, it is possible to obtain over 10% profitability on a rental property investment. The following article reviews in detail the most dynamic regions in France for this type of investment.
Bad news for investors: money is no longer worth as much as it was before. The ‘Livret A’ – which is still the French favourite – is getting dangerously close to absolute zero as, since August 1st, it has dropped to 0.75%. Life-insurance is only a little better, with an average return which barely surpasses 2.5% for funds invested in Euros.
Districts and Suburbs are performing well
To drive up the return on their investment, individuals can turn to the Stock Exchange with the risk of suffering losses, as the equities market remains particularly uncertain. Another solution is to invest in rental property. In fact, while the average gross yield is between 3% and 5%, certain French urban areas offer even better return figures. A handful of towns have even surpassed the 10% mark according to data provided by French solicitors who claim that the industrial commune of Roubaix offers an average return of 10.9% while the city of Montbéliard brings an average yield of 10.09%, for example.
Don't ignore smaller towns!
It is worth noting that smaller urban areas are often full of suprises: Vandoeuvre-lès-Nancy (Meurthe-et-Moselle) is the champion in all the categories with an observed yield of 12.44%, followed by Montluçon (Allier) where investors can expect a profitability rate of 11.43%.
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