France has one of the highest levels of second-home ownership in the world, and borrowers are now buying second homes in France after mortgage rates fell to the lowest level since the postwar period last month.
October saw average French interest rates fall to their lowest level since World War II. The average rate now stands at 3.30%, down from 3.40% the previous month. One of the reasons rates are now so low is that the interest rate on long term government debt is at its lowest level for 200 years. As the French market has fixed rates for the term of the mortgage as well as a wide range of capped products, property owners can limit their exposure to future rate rises and lock in long term value. Quite simply, the cost of borrowing money in France has never been this cheap or secure for such a large number of people before.
French banks will have granted something between 145 to 150 billion Euros of mortgages to individuals this year, 23.5% more than the 119,45 billion of last year.
Although the Euro may be strong now, the long term value of low rates, combined with low property prices, far outweighs any currency considerations.
France has traditionally been one of the most popular locations for overseas buyers of top-end second homes. Buying property near the bottom of the market with historically ultra low interest rates is surely a very good reason to buy in France. Of course, there are many more reasons to buy a French property, not least the wonderful lifestyle. Therefore it comes as no surprise to hear that France has, yet again, been revealed as the best place to live in Europe. In a survey by uSwitch, France was shown to enjoy the earliest retirement age, to spend the most on healthcare and have the longest life expectancy in Europe.
Find French luxury real estate properties to buy on Signature Residences Worldwide.
