Photo credit: Giuseppe Nicoloro
Gérard Depardieu may be fleeing to Russia, but French
property remains attractive to buyers with mortgage rates at all-time lows.
The French movie star ruffled feathers when rumours spread
that he was looking
to buy a house in Belgium to avoid the new tax rates introduced by
President Francois Hollande.
Depardieu told the government they were "punishing success,
creation and talent", reports the BBC, before
announcing his plans in December. France's Prime Minister Jean-Marc Ayrault labelled
the decision as "shabby" and "unpatriotic".
The country was by parts amused and outraged when the actor responded
by going even further afield to find a new life abroad: to Russia, where he was
welcomed by President Vladimir Putin with welcome arms.
The actor wrote a letter to Putin, declaring his love for
the country. In response, he received a passport, which he collected on Sunday.
"I love your country, Russia - its people, its history, its
writers," he said. "I love your culture, your intelligence."
Russia has a 13 per cent income tax rate.
The media furore surrounding the public spat escalated even further today when it was
revealed that Gérard Depardieu had
also been offered post of culture minister in the Siberian region of
Mordovia, famous for its prisons during the Stalin era.
Back home, France continues its wave of austerity measures
to tackle the eurozone crisis. The 75 per cent levy on all earnings over €1
million was introduced by Hollande alongside other property taxes.
But while some feared that the taxes would cause extra costs
for overseas buyers - claims that were swiftly dismissed by French property
experts last year - France remains an attractive opportunity for investors, thanks
to historic mortgage rates, which have kept demand for real estate strong.
Jon Busby, director of French Private Finance, told Property
Wire: "This week alone we have sent quotes out over €15 million of new
purchases in the Alps at all different price points with viewings all
confirmed. Now certainly is a good time to be buying with French mortgage rates
at their all time historic lows and with loan to values of 80% of the purchase
price and effective interest rates from 2.4% over 25 years."
Indeed, demand for French property climbed in November 2012
on TheMoveChannel.com, overtaking Portugal's popularity to account for 10.47
per cent of enquiries on the site - the third highest that month behind Spain
and America.
And according to Busby, the low interest rates are expected
to remain at the start of the year, with banks interested in lending to
non-residents.
Indeed, in 2012, French mortgage rates have
decreased by an average of between 0.5 per cent and 0.85 per cent.
"This is a historic decline that nobody
expected in early 2012," added Busby. "One explanation can be found in dramatic
decline in the TEC 10 index, the rate at which the French government can borrow
for 10 years, which now stands at 1.99% in December.
"The other factor is that banks faced with
declining demand are offering favourable discounts to attract customers. This
December, borrowing €200,000 over 20 years costs on average €80 less per month
than in January. This leads to an overall savings of nearly €20,000 over the
loan duration."
"In this context, overseas buyers can easily
apply for a French mortgage and take advantage to invest in a second home or a
buy to let property in France," he concluded.
Moving to France?
Browse our listings of French property:
http://france.themovechannel.com/property/all