The following are the 5 key steps to making an investment in the French Property market.
Research & Due Diligence Solas will initially discuss with you your investment budget & finance requirements. You will then select the various locations & pre screened investment properties available to you for investment. We will provide you with details of the developer, rental Management Company and historical capital appreciation in the area you are looking at.
Reserve & Deposit Once you have selected a preferred development you need to select a suitable property / apartment. Solas Financial will assist you in this process and provide you with relevant floor plans, elevation plans, site plans etc to ensure that you are satisfied with the layout, aspect of the property you choose.
In order to reserve a property you need to place a deposit. After you have selected a property Solas Financial will place an option on the property for you through the developer and you then have up to 72 hours in which to electronically lodge your deposit into the Notaire's account in order to confirm reservation. Solas will provide you with all the relevant bank transfer details and instructions.
Following the reservation you will receive a copy of the reservation contracts on your particular property for you to sign and return. These contracts will include the following:
Reservation Contract (Contrat de Reservation) Confirms details on the development
Lease Agreement (Bail Commercial) Confirms details of the lease agreement with the management company including lease term, yield, rent and rental amounts per annum.
Floor & Site Plans Copies of the floor plan & site plan to confirm your property
Descriptive Summary (Descriptive Summaire) Quality of the build and a detailed description of the building finish and materials used.
Arrange Finance In order to finance the investment you need to decide whether you are undertaking this out of Ireland or through a French bank.
Solas Financial has a strong track record of arranging finance in France. We will guide you through the relevant application documentation & requirements to complete a French mortgage application and take you through the mortgage process from start to finish.
Your Application will sent to the bank producing the best rates and providing the type of mortgage you require, i.e. fixed, variable on either regular capital & interest to interest or interest only.
Complete Final Contracts Once your finance is in place you will need to complete the final contracts. If you like you can travel to France and arrange an appointment with the developments notaire. Alternatively, you can make an appointment with a registered Commissioner of Oaths in Ireland and complete the final contracts in their presence.
At the time of completing your final contracts you will required to transfer your remaining upfront capital (as determined by the mortgage you have secured) to France. Following this the bank with authorise the release of funds from your mortgage which will be drawn down in line with the stage payments set down.
Ongoing Review Once you have signed you final contact you wait until the building is complete and starts to produce rental income, we will keep you informed of the building progress via email with photographs and status reports form the develop.
