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Use your cheap mortgage to fund French property investment

Date: Thu, 14 Jul 2005

Property investors could benefit from using cheap mortgage deals to fund French rental investments.

A new study by Assetz, a leading property investment specialist, concludes that France offers landlords strong rental yields.

Properties in France give better returns than similar homes in the UK, Spain, Florida, Bulgaria and Cyprus – in some cases investors could see a total return of 92 per cent, compared to UK predicted returns of just 35.4 per cent.

However, Assetz warns many property entrepreneurs away from the once popular Florida market.

"With interest rates rising fast in the USA and a widely forecast faltering in property price growth, Florida is a risk for investors who would gain on rental income alone and would therefore be forced to consider only a long-term investment strategy," said Stuart Law, managing director of Assetz.

"I would recommend caution in America. The property boom was based on extremely low interest rates, which are now rising in an effort to turn the heat down on the housing market."


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