Buying Investment Property in France?

[Kiz]

I am just in the beginning stages of looking into the viability of buying some investment property in France, probably in Lyon.

I'm from New Zealand so not part of the EU just in case that matters.

Just wondering really if anyone has any experience/advice/opinions on the idea of buying a long-term rental property in France/Lyon?

Thanks in advance!

[alanjg]

It may be useful to read up on France's 'interesting' inheritance laws. Here is a quick description of different methods of purchase and their implications.
French Inheritance Law Limits Your Rights

[cookie09]

you might also want to read up on rent control laws

[alanjg]

Some more fun stuff. Under French law, squatters can take up residence in your home if it is vacant for 2 days and be protected by law from eviction. You would have to bring proceedings against the squatters in order to get them out. The process could take monhs. In winter they would be allowed stay until the winter is over.

[Drunken Master]

Some more fun stuff. Under French law, squatters can take up residence in your home if it is vacant for 2 days and be protected by law from eviction. You would have to bring proceedings against the squatters in order to get them out. The process could take monhs. In winter they would be allowed stay until the winter is over.

So when French people are going on holidays they'd better have someone stay in their place?

[hullexile]

Some more fun stuff. Under French law, squatters can take up residence in your home if it is vacant for 2 days and be protected by law from eviction. You would have to bring proceedings against the squatters in order to get them out. The process could take monhs. In winter they would be allowed stay until the winter is over.

Isn't the law that they can't be evicted without a court order if they have been squatting for more than two days? The property needs to have been unoccupied so just going off on holiday would not make it unoccupied would it?

[alanjg]

Isn't the law that they can't be evicted without a court order if they have been squatting for more than two days? The property needs to have been unoccupied so just going off on holiday would not make it unoccupied would it?

My interpretation is vacant for 2 days as opposed to squatted in for 2 days. The property is not considered vacant where you have gone on your vacation (despite the similarity of the words) and it is your normal place of residence. I think an unoccupied holiday home would probably be fair game.
That said, I don't believe it is a problem in rural areas. More likely in big cities with derelict buildings.

[alanjg]

My interpretation is vacant for 2 days as opposed to squatted in for 2 days. The property is not considered vacant where you have gone on your vacation (despite the similarity of the words) and it is your normal place of residence. I think an unoccupied holiday home would probably be fair game.
That said, I don't believe it is a problem in rural areas. More likely in big cities with derelict buildings.

On second thoughts, it appears you have the correct interpretation. It's 48 hours squatting.
Removing Squatters from your French Property

https://sqek.squat.net/en-what-is-a-...als-in-france/

[Kiz]

Wow thanks all for the links and information!! I’ll need to look through some of the information later such as the website of the notaries. I don’t know that much about Lyon, compared to HK and NZ, and my main concern is I’ll make an incorrect assumption based on past experience in totally different markets. Obviously I’ll go to Lyon again before buying anything, but I have more research to do before getting to that stage, but all of your input is appreciated!

jrkob I'll definitely take you up on your kind offer when I get a bit further along in the process looking at particular areas in Lyon etc

Just as a starting point, squatters... if a flat is say on the 3rd floor of a nice apartment building in a middle class area and looked after by a property management company is there really that much of a risk of squatters?

Inheritance laws, seem like if you purchase through a corporate structure these can be avoided, may have tax implications, will need professional advice on this.

Rent control I've looked into a little bit my conclusions (which may be wrong):
- seems like it is currently not implemented in Lyon/most of France outside of Paris
- seems quite controversial and may never be implemented in Lyon
- the threat of the rent controls may further reduce the demand in Lyon (property prices seem to have been slowly dropping) negotiating a good purchase price may be easier.
- Other European countries have similar sounding laws from what I can gather. Even if it was implemented shouldn't be the end of the world especially given long-term fixed rate mortgages are at historic lows currently in France.

It would seem like Lyon as a city has quite good long term prospects with diversity of employment sectors in biotech, pharma, finance and universities. Also Unesco world heritage site and spending quite a lot on urban renewal, and a very green city so also has some tourism. Unlike most of the developed world has a young population with over 50% under 45, and 65% of the population renting. Being the 3rd biggest city in France, it has good infrastructure connecting it to the rest of France/Europe/the world.

Sorry that was a bit long!

[Morrison]

If you have to buy, buy in Grenoble