Tips from the Practiced Realtor's Spot

The subprime crisis in the US has left its housing industry pretty scarred and it is taking a long time to recover. The rate of unemployment is still too high for comfort and as long as this does not come down, people would not feel confident about going for fresh mortgage loans. Hence total recovery in the housing market in the US is still some time away.

Europe on the other hand is seeing some positive signs of recovery, though the UK and Spanish markets are still struggling. The excesses followed and allowed by the lending institutions in terms of easy credit to people who did not qualify or were not eligible is now coming back to haunt these markets with repossessions increasing and prices falling steadily.

The French market on the other hand is the one that did not suffer much in the first place and has also seen better demand emerging as serious investors look at opportunities in this market. People in France who had bought properties in the period between 1995 and 1999 and also in the last couple of years are now advertising French properties for sale in order to take profits and probably deploy those funds in other countries where real estate is still struggling. Clear rules of lending that mandated the mortgage applicant to have an income that is at least thrice the monthly repayment amount for mortgage loans ensured that the property market remained within manageable limits and did not get a chance to inflate. Though this meant that many potential buyers of property were refused loans if they failed to meet the lending criteria and had to turn back disappointed, it at least meant that people borrowed within their means and that has helped the French economy to grow better.

So where does the French property market go from here?

The French President has reiterated his wish to take the economy to its full potential and wants to do everything he can to ensure that the number of home owners shows an increase in France. He wants to emulate Margaret Thatcher and her policies when she made so many policy changes to help more and more Britons to own homes. Only about 58% of people actually own homes in France as compared to 70 and 84 per cent in Britain and Spain respectively.

The intention is to put in place policies and steps that would boost economic activity as under:

1) Increase the working hours per week from the current 35 hours to at least 42.

2) Bring down the tax on inheritance and provide exemptions to income of the spouse so that the money saved can find its way into the housing market.

3) Provide tax breaks on interest paid for mortgage loans. This will encourage more people to take mortgage loans and they would be able to create an asset.

4) Move from direct taxation to indirect taxation to leave more money in the hands of the citizens.

About the Author:

AccessU2 promote and specialise in advertising French properties for sale and rent and also offer arrangements for mortgages & finance in France. If you are looking to buy or sell properties in France you can view the full range of services available from AccessU2 at www.accessu2.com

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