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Friday, October 27, 2006

French Mortgages

Had a meeting with Credit Foncier bank in Beziers yesterday regarding new build property.

They have an interesting package that sounds ideal for those of you looking to buy a new build property off plan.

As simply as I can make it. This is how it works;

  1. You borrow 200,000 euros in order to finance your project.
  2. The project is going to take 12 months to complete.
  3. Your payments are in stages. 20% first payment, 20% second payment etc over the course of the 12 months.
  4. The bank releases the stage payments to you as and when required, but you don't have to repay anything until the build has completed and you take posession of the property.
  5. All they do is calculate the interest on the advances as and when they're made and add this on to the total borrowed.
  6. Therefore, if you're planning to buy off plan to rent out, you don't have to start making payments until the property's finished and you can start to look for a tenant.

If this sounds of interest and you're thinking of buying a property in a new development in the Languedoc, contact us for more info.

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