Sunday, January 6, 2013

Buy to let in France

The French newspaper Libération has published an interesting profile of typical French private landlords, who between them house one fifth of the French population - 14.4 million inhabitants,  or 22.7% of all households.

There are nearly 3 million private landlords, of which 30% own a single property they rent-out, and 25% have two. Larger scale owners are divided into 29% owning between three and five properties, 10.5% between five and ten, and 5.5% own more than ten house or apartments.

Of the properties themselves, 63% were purchased specifically to rent-out, 18% were their owners' former principal or private residence, and 14% were inherited. Some 80% of owners bought the property using a mortgage, with interest deductible from income.

Finally, the 'ideal tenant' is seen as someone aged between 16 and 35, with the rent guaranteed by parents. Older tenants (50+) are not seen as ideal 'as they are likely to be/become unemployed, and go into retirement with markedly reduced income'.

Source:www.liberation.fr 04 January 2013