All this should give you an idea of how popular your choice is likely to be and how likely your investment is to increase in popularity.

Accessibility is key, but you need to look at what it will be like in 3 or 5 years time.

Look at historical trends. These are likely to continue, albeit in a modified form.

In the first instance we strongly recommend you employ the services of a lawyer based in the area of purchase. Laws vary greatly by country and sometimes by region within that country hence the need to select a lawyer who is very familiar with the area.

Buying off plan means reserving a property - sometimes before commencement of the build. Developers like to sell as many as possible before starting the work in order to protect themselves and in some cases to earn more favourable bank rates. In this respect if you are one of the early purchasers it is always advisable to try and understand the lead time before building.

Very often developers do not start before 70% of property stock has been reserved but this does vary by country. In return for this "inconvenience" prices are virtually always more favourable than buying a completed property or a resale. Remember, if you prefer to wait until you can physically see the construction it will normally cost you more.

Prices will still move upwards during the course of the build, so the sooner you can decide the better value it is likely to be. Once you have decided and signed the contract irrespective of the build stage the price should be fixed.

One of the main advantages to buying off plan is that frequently (and again this varies by country) you need only pay around 30% to 40% of purchase price and often very little until completion. The balance can either be settled by cash or a mortgage which is often built into the purchase price.

In some cases, subject to the conditions of purchase, the contract will enable a buyer to sell the property before completion after having paid, perhaps, only 30% to 40% of the purchase price.

For example:-
Purchase Price : € 150,000 / £ 100,000
Deposit Payable : € 52,500 / £ 35,000

Assume the property is sold before completion for € 202,500 / £ 135,000, (not an unusual return over say an 18 month to 2 year planning and build period) then profit = € 52,500 / £ 35,000.

This leaves a profit of € 52,500 / £ 35,000 or a 35% return.

Our Agencies will be happy to discuss specific new build projects across all featured opportunities.

Rental income versus capital appreciation

How do you intend to make your money - from rentals or from selling the property, either quickly or in several years time? Both have tax implications which need to be considered in the light of local legislation.

The rental returns from a property need to be carefully assessed and not over-estimated. Rentals are never guaranteed, and you should be careful not to take on something which you may struggle to pay for when it is not rented out. Look at local supply and demand.

Security

30 weeks rental per year might be a reasonable expectation; this should produce a net return of about 6%, but also means that the property may be empty for 22 weeks per year. A secure development would mean you do not need to be concerned about leaving it unattended, however thought should be given to security over the time the property is left unattended.

Maintenance

Another issue is keeping the property in rentable condition, so you will need to organize (and pay for) some sort of property management in your absence. Will the developer provide this, or will you need to source a cleaner and gardener yourself?

Capital Gains

If you are looking at selling the property, you will need to consider the current capital gains situation. For example, capital gains tax (CGT) for non-residents in France is 35%.

It's a lot to think about, and all the factors need to be carefully considered and balanced before you make this important decision. Our Agencies can advise you on the various investment opportunities available.

For properties for sale throughout France. http://www.frenchways.com The company offer a carefully chosen selection of English speaking, licensed French Property Agents with offices in England, giving access to the most comprehensive selection of properties throughout France. For more information about life in France http://www.frenchways.co.uk