French Vacation Property Investment Advantages and Disadvantages

According to an article in Le Monde there are 150 000 French vacation property investors and of this amount 85 percent are individuals.

This article is to share Advantages and Disadvantages of investing in French Vacation Property Rentals as discussed in the article.

Advantages
French Vacation Property Investment
There are Tax Benefits via a impact on your income tax and an exception from the TVA at purchase time. (Make sure you take legal advice on these matter when you buy).

Tenant Search and Rental Income
The operator of the French vacation property is responsible for finding renters and getting payment of rents.

Disadvantages
Rental Income
The rental income is often not as guaranteed as expected, according to the article in French in Le Monde.
Owners are often asked to reduce their expectation of what the rental income will be. If this does not take place during the original lease term it often happens on the renewal of the lease agreement.

Cost of Work
The cost of maintenance work to be done on the property can be very high, according to the article, reaching the total of one years rent.

Tax Impact
In general as pointed out in the article if you sell your property before 20 years of ownership you will end up having to pay TVA back to the government. See your tax adviser from more details.

Read the complete article in French here

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