Buy to let Opportunities Vannes, Morbihan, France – an alternative to UK Buy To Let?
Many UK buy-to-let landlords and investors have seen net yields decrease on UK residential property in recent years due to a number of factors including demand for properties, taxes, and most recently a shift in demand from apartments to houses with outside space.
Since 2016 landlords in the UK have had to pay a 3% stamp duty surcharge on buy-to-let purchases. This change and the tapering of mortgage interest tax relief on buy to lets, which followed soon after, is thought to have forced a quarter of a million to sell up and exit the market. So, it is estimated the Government’s buy-to-let crackdown has led to UK landlords buying a third fewer properties in the last five years.
More and more investors are looking further afield and overseas to chase higher yields. In France there has been a surge in demand for rural and out of town properties with many couples and families looking to move away from Paris and other French cities. Consequently, there is a shortage of homes to buy and let in some of France’s more desirable areas.
New build houses rent out very quickly in France as they are very cheap to run (think energy efficiency and no maintenance costs – heating and hot water cost circa €30pm). Currently either two-bedroom bungalows or four bed houses are commanding the highest rental yields.
The region around Vannes in Morbihan, Brittany is an area of natural beauty. Designated as one of the world’s most beautiful bays, the ‘Golfe-du-Morbihan is a natural harbour of about 40 square kilometres situated between Vannes and Auray.
It is still possible to purchase a new build detached bungalow or house for as little as €125,000 in this desirable region. Four-bedroom new build houses start for as little as €148,000! These prices include the cost of a plot of land and a basic specification on the new build house. Coastal plots are available, but you pay a premium as you would expect. Generally, in this area the value of the house once completed increases by about €20-30,000 and prices of modern houses increase by about 2% pa although this figure has been much greater in the last year due to the pandemic and the flight from cities to the countryside. These houses are traditionally constructed under extremely strict “RT 2012” regulations and covered by an insured 10 year guarantee “Dommage Ouvrage”.
Net rental yields on these new build properties are conservatively put at between 5-7% pa depending on where the house is situated. It is also possible to finance a new build buy to let project.
Our developer partner has over 30 years’ experience in the industry and specialises in “turn-key” solutions. Prices quoted include everything from land, build, legal fees and administration fees. Properties have double glazed windows with electric roller shutters, fitted kitchen, bathrooms, flooring and a choice of heating systems. Other work can be specified including patios and pools.
Viewing trips can be arranged with accommodation arranged and airport pick-ups etc.
Please contact us today for further details and for an introduction to our developer partner.