Parisian property has always been popular with non-resident investors, particularly the Swiss. Buying in a neighbouring country will always be appealing, and the French property purchase process is similar to that of Switzerland, which often makes purchasing property easier to understand than somewhere like London, where things move a little differently.
High-value properties in Paris remain in high demand for non-resident investors either for personal use or as buy-to-let opportunities. Parisian buy-to-let investments are popular with Swiss investors, and a well-thought-out Parisian property purchase can generate a steady and lucrative income.
If you’re thinking of buying in Paris, it’s important to understand the speed with which the market moves. The best properties in the most desired locations – even those costing several million euros – come and go off the market exceptionally quickly. ‘Bargain’ property, should you come across it, will move off the market even faster. The intense competition for Parisian real estate means that sellers have their pick of buyers. Having the property finance lined up that will allow you to buy property is imperative, especially so for non-national buyers for whom securing a mortgage may be slightly more complex than for domestic buyers.
Many international buyers will opt for mortgages when buying French real estate. Competitively priced mortgages and other property financing products are readily available for Parisian property purchases, although domestic retail banks typically don’t lend to non-residents. Generally speaking, the buoyancy of Paris' real estate means that French mortgages for non-residents are more readily available than in the other parts of France that also attract foreign investors.
While there are many options for financing a property purchase in Paris, you should note that French mortgages can be complicated for Swiss nationals or resident investors. Highstreet French banks do lend to French non-residents, but the application process is often long and complex. Seeking a mortgage from these players is complex if you are operating alone, hopping from lender to lender in search of a finance package while simultaneously trying to navigate a property search away from home.
You’ll also find that mortgages from domestic retail banks tend to be standardised and won’t provide the most competitive rates and terms. Enness will be able to negotiate property finance from lenders who can consider global income and assets, structure Parisian mortgages effectively from a tax perspective and mitigate exchange risks between the euro and the Swiss franc.