Investment Property in France

With average returns of 10% per annum and a highly successful rental market currently attracting yields of around 7% in some sought after locations. Investment property in France offers purchasers a lucrative and safe option. Due to excellent transport communications to France, including numerous budget flights, France now enjoys the prestigious title of the World’s number one tourist destination, with obvious repercussions on the real estate market.

Investors are reassured by this proven market place in which home buyers and investors alike have enjoyed healthy returns on their investments over the years.

Why Invest in France?

Over the years, investment property in France has enjoyed constant success. Due to many natural and economic factors, France is still an ideal location for many of today’s wise property investors who seek a stable though buoyant market in which to make their next purchase.

Advantages of Investing in French Property

• Historically a strong and stable market in which to invest in property and all economic indications show this trend is set to continue
• Modern, European culture with political and economic stability
• Long term residential property price growth at a very respectable approx. 10% per annum. No danger of losing money in a potentially volatile investment climate
• Net rental yields of around 7-10%
• Highly popular leaseback schemes offer tax incentives to purchasers, with minimum risk and guaranteed rental income.
• Ever increasing inward and overseas investment, while American expatriates are now exploiting the high value of the dollar.
• Relatively low property prices when compared to most northern European countries
• Capital gains tax on housing recently halved to 16%. You are exempt if you hold your property for more than 15 years.
• One of the most visited countries of the World with a correspondingly strong tourist market
• Excellent, modern transportation infrastructure and close, easy links with the UK and mainland Europe
• Easily accessed mortgage facilities, making it relatively easy to raise finance for a French property purchase.
• Geographical diversity and many natural and cultural attractions, making France so popular as a tourist location.
• Chic, cosmopolitan atmosphere and culture in the livelier towns such as Paris, Nice and Cannes
• Beautiful rural towns and villages, also with that unmistakable French charm, that continues to draw visitors and expatriates
• Famous French cuisine, wine and lifestyle
• Safe place to buy property due to a strict buying process and legal system
• Double tax treaty with France and the UK ensuring you do not pay tax twice

 

Due its proximity to much of Europe, property in France offers many home buyers a great opportunity to have a second home for their holidays while often taking advantage of the popular French leaseback system. Others may even relocate to France on a more permanent basis. Alternatively, there are many investment options available, including off-plan and buy-to-let strategies in many key investment locations such as major cities or current tourist hotspots.

Capital appreciation, while not as high as in some emerging markets, is considered to be profitable and reliable within a stable investment climate. France also offers easy and accessible finance facilities where mortgages to foreigners can be obtained for up to 100% of the valuation of the property and interest rates are highly competitive at 4%. The Government’s leaseback investment option offers guaranteed rental yields of some 5.5%, more than covering the cost of mortgage interest, and a full VAT refund of 19.6%.

France benefits from excellent direct flight communications with the UK and the rest of Europe as well as first class rail and road links, making it a highly convenient holiday and investment destination. The quality of life and slightly warmer climate continue to attract those looking for a continental lifestyle while being only a relatively short distance from folks “back home”.

France Investment Strategies

General Factors

France boasts the status of the World's most popular tourist market. Along with the likes of Spain, France's close proximity and easy transport links between the UK, Ireland and Northern Europe create one of the world's most established tourist markets, particularly as a long weekend break and short haul holiday destination.

France's property market is well established and has much to offer investors from a wide range of both up-market, established locations to more up-and-coming emerging markets. Membership of the G8 group of most established World economies gives France that leading edge to reassure purchasers of their final investment decision.

Many property purchasers are drawn by a well established leaseback system which is one of the most tried and tested investment models in the international market place today. Due to a very strong domestic and holiday rental market, many investors feel they can firmly rely on buying into a France's busy rental market today.

France attracts around 60 million tourists from all over the world, including approximately eleven million British tourists. Due its inherent, seductive charm and a wide diversity in tourist attractions, France has something to offer everyone, from dramatic mountains and coastlines, chateaux and vineyards to the chic Riviera or the culture-packed sophistication of Paris.

As a major international tourist destination, France's government is well versed in the supply of a solid infrastructure to service its ever growing tourist industry. With the opening of provincial airports, we are seeing an emergence of new tourist and related property markets, allowing foreigners to purchase second homes or buy-to-let investments in new, previously little known areas. This has caused renewed interest in areas such as the Atlantic coast, Montpellier and Nice as tourist destinations and property markets. Property purchasers are currently seeing an opportunity to generate healthy profits from their assets in up-and-coming tourist areas.

Natural and Cultural Factors

Easy access via direct budget flights from many international airports Excellent, modern transportation infrastructure and close, easy links with the UK and mainland Europe Geographical diversity and many natural and cultural attractions, making France so popular as a tourist location Modern European style culture akin to “back home” Chic, cosmopolitan atmosphere and culture in the livelier towns such as Paris, Nice and Cannes Beautiful rural towns and villages, also with that unmistakable French charm, that continues to draw visitors and expatriates Famous French cuisine, wine and lifestyle.

Political Factors

France has been a democratic republic since the abolition of the monarchy's power following the French Revolution in 1792. French politics has waved between right and left with each election, while much of the population is still vehemently nationalistic. Right wing De Gaulle and leftist Mitterand are the most famous and influential presidents in recent years and the general population tends to swing towards left or right wing ideals, while many other parties exist in between, such as the liberal UDF (Union Pour la Democracie Francaise) and the communist PCF.

Since founder membership through Charles de Gaulle, France has come a long way towards European Union and today remains one of the most vocal and often contentious members of the EU.

The socialist government has fully and partially privatized many of the country's large institutions, including banks and insurers, while the government still controls large stakes in such giants as Air France, France Telecom and Renault as well as certain sectors of the public transport and defense industries. Meanwhile the government remains committed to a capitalist environment, while maintaining strong social spending, tax policies and laws to reduce income disparity and improving public health services. More recently income taxes have been reduced with the aim of boosting employment figures.

Economic Factors

Capital Growth

Property in France is known as a stable investment both for capital appreciation of between 5 and 10% and high rental yields of around 7 to 10%.

Growth in France is famed as a solid and reliable bet. It is clear that, as in many countries, the highest returns can often be found in city property, particularly in Paris. Meanwhile, carefully selected property in tourist resorts continues to offer healthy returns. Investors are now looking for new places within France in which to capitalize on mini emerging markets, such as areas in and around Montpelier, Nice and along the Atlantic Coast, where improved accessibility and affordable prices are enticing tourists and investors to these areas, while indications suggest it is here that the greatest amount of capital growth from the tourist market will be experienced.

Leaseback Schemes

Under this Government scheme, purchasers buy freehold property and then lease it to a holiday company for a typical period of nine years. In return they get guaranteed rental income at average yields of 3 to 6% (some schemes guarantee yields of 5.5%). Although owners pay maintenance charges and management fees amounting to some 15% of rental income, they are fully refunded their VAT of 19.6%. In addition owners can use their properties for periods of between 2 and 8 weeks per year at reduced rates.

High Rental Demand

Due to France’s popularity as the World’s most popular tourist destination, there is always high demand for accommodation in tourist resort areas. The French, like many other continentals, do not have the British preoccupation with owning property and the vast majority rent their homes for average fixed terms of three years, allowing investors ample buy-to-let opportunities.

Low Property Prices

Property prices are still lower than in many European locations, making property investment in France still a very attractive option. In the remoter areas of the country, you may still find a renovation project for under GBP 30,000 while a typical two bedroom off-plan property in Provence could set you back around GBP 80,000.

Capital Gains Tax

If your property was your principal residence, you will be exempt from capital gains tax. However if the property is not your principal residence, tax will be levied at 16%, unless you have owned it for more than 15 years.

Logistical Factors

Close proximity to the UK and rest of mainland Europe makes France an ideal location in which to buy a holiday home. This ease of access further fuels the tourist industry as a whole and maintains the value of your property investment.

Budget airlines such as EasyJet, Thomsonfly, Flybe and Bmibaby connect most French airports to many UK and other European destinations, making it an ideal short break away. Direct flights are currently available from Air France, Easyjet and British Airways to Paris, Bordeaux, Toulouse, Lyon and Marseille.

The number of smaller French airports also welcoming international flights has increased over the years and this, in turn, has opened up lesser discovered areas of France to become new hotspots with property buyers, eg. Perpignan and Montpellier airports as well as the Aeroport de Salvaza and Nimes-Garons airports.

Alternatively, the Channel Tunnel and cross Channel ferries allow you to travel with your car to a number of convenient ports on France's northern shores. You are then free to explore onwards via an excellent road infrastructure linking all areas of France and the rest of the Europe.

Medium to Long Term Investment Strategy

Key Opportunity

France will continue to be a highly popular destination for the British and other Europeans by virtue of its location and expanding economic climate.

With an abundance of flights and ferry crossings to France from the UK, it's unsurprising that today an estimated half a million British property owners have bought in France. Statistics from The Economist reveal that the French property market grew by 87% between 1997 and 2005, reflecting a natural positive trend towards the French real estate arena which is likely to continue. These home buyers enjoy the privilege of owning an idyllic European property and receiving healthy profits from their investment.

Due to France's popularity as the World's most popular tourist destination, there is always high demand for accommodation in its tourist resort areas. The French, like many other continentals, don't have the British preoccupation with owning property and the vast majority rent their homes for average fixed terms of three years, allowing investors ample buy-to-let opportunities. Investors commonly take advantage of a booming tourist and residential rental market in key locations or buy and resell to investors or holiday home buyers.

There is also a strong demand for property from those foreign purchasers looking to permanently relocate or to simply invest abroad. Typically, rural restoration properties have been popular among overseas investors as the French dream.

Under the government's highly popular leaseback scheme, purchasers can buy freehold property and then lease it to a holiday company for a typical period of nine years. In return, they get guaranteed rental income at average yields of 3 to 6% (some schemes guarantee yields of 5.5%). Although owners pay maintenance charges and management fees amounting to some 15% of rental income, they are fully refunded their VAT of 19.6%. In addition the properties can be used for personal use for periods of between 2 and 8 weeks per year at reduced rates.

Timescale

Average construction time on French off-plan developments, from project sales release to completion of construction, is approximately one year. Mid to long term investors look to hold onto their units after construction, normally for at least 18 months from initial reservation, either to rent it out and/or benefit from capital appreciation upon eventual resale. Many long term investors use hotspot locations to generate significant and reliable rental income over a period of time as sustained rental returns are their main focus, followed by capital appreciation over time.

Capital appreciation is expected to perform well over the next 5 years, notably in the newer emerging French markets such as the Atlantic coast, Montpellier and Nice, and the longer investors are able to leave capital in their purchase, the higher their potential long term returns will be.

High tourist numbers and the resulting strength in the buy-to-let market allows investors to reap in solid capital growth from their properties, all the while supplementing this income with high rental yields in many key tourist locations.

Level of Complexity

In the case of off-plan purchase, full payment for the property needs to be completed at various stages of construction, prior to final completion of the purchase.

For mid to long term investors, all costs will be applicable, while ongoing costs such as maintenance, community fees and utility bills will also need to be factored into the strategy finance plan. Bear in mind it's advisable to open a Euro bank account in France in order to pay for the property's utilities and other ongoing expenses.

Beneficial arrangements are often to be made with local property management and rental companies that are usually conveniently based on or near the site. These ensure that such ongoing costs are covered and that your unit is rented out regularly. Managed properly, maintaining a property abroad can become no more complex than an investment closer to home.

Key Risks

A medium to long term investment strategy entails much lower financial risk than a short term plan which relies on finding a buyer within a very short time frame. Provided the right investment is made on a quality, well located project with multiple facilities, establishing a rental market and eventually a buyer for your investment should not be difficult. However, as with any investment, patience and money is sometimes required until the end user is found.

France's ongoing popularity as the world's top holiday destination bodes well for buy-to-let investors. The French government recognises the importance of an ongoing contribution from the property and tourism sector to the boost its economy. On the one hand, this of course translates to a stable environment in which to buy or rent, but brings with it intensified competition on the other.

By appointing independent legal representation, the client can be sure that all the necessary paperwork is in place before signing the purchase contract.

Property ownership in France is mostly Freehold, leaving no room for ownership disputes.

Return

Constant and sustainable growth in the region of 10% per annum and strong rental yields of around 7-10% per annum gross make France a stable arena for those looking for a profitable investment within a market that has a buoyant sales market and a constant demand for residential and tourist rentals.

Despite growth being slower than in other emerging markets, investors choose France as a far lower risk for more cautious investment. French property has historically increased in value generated a sustainable rental income. In addition, the absence of political instability or potential economic volatility makes France an ever attractive option.

Investors are now looking for new places within France in which to capitalize on mini emerging markets, such as areas in and around Montpelier, Nice and along the Atlantic Coast, where improved accessibility and affordable prices are enticing tourists and investors to these areas. Indications suggest it is here that the greatest amount of capital growth from the tourist market will be experienced.

The vast majority of the French population rent their homes and this factor, along with a powerful tourist industry, makes for an ideal buy-to-let market. Due to popular demand, prices are increasing and investors are currently experiencing net rental yields of approximately 7%.

Off-Plan Property in France

• Off-plan purchase offers investors the ability to buy at the lowest possible price and achieve maximum returns on investment.
• Many investors keep their property for a number of years and receive excellent rental income. Meanwhile they can enjoy a beautiful holiday home and watch the value of their property increase steadily.

Many developers of property in France offer beneficial payment schemes. We carefully vet these offers and work with only the most reputable and secure development companies that operate in your favoured location. Payment schemes currently on offer allow you to buy property off-plan, ie. before or during construction when the price remains low, with deposits of 5% followed by stage payments to completion.

By the time the property is finished, prices rise due to market forces and the greater general appeal of a completely finished property that is ready to move into. Investors therefore sell the property on to another property purchaser and in doing so, enjoy solid returns of around 10%, whilst never having paid the full purchase price.

Investors should however exercise due diligence and choose wisely, making sure that the property is located in an area where they will resell quickly and easily or where there is a high rental demand for their buy-to-let option. Due to a high demand for rental accommodation both in tourist and residential markets, French property can offer excellent rental yields of 7 – 10%.

Even in the “worst case” scenario, if an off-plan property cannot be sold upon completion, the final balance due can sometimes be financed by the developers themselves. Furthermore, the rental income may pay off the finance of this loan and yield further eventual return on investment.

How can property be cheaper if bought off-plan – How does it work?

In order to limit financial risk and debts, the developers of any project will wish to sell units off-plan. They understand that if buyers cannot see a physical property at the beginning, they will demand a lower price, while relying purely on the developer’s reputation, the property location, artistic impressions and computer simulations on which to base their decision to purchase. In addition to the excellent off-plan price, some highly beneficial finance structures are in place. You sometimes need to pay only around 20-40% of the purchase price in the form of a deposit, while the rest is payable upon completion. This may be financed by a mortgage if necessary.

If you decide to invest in off-plan property, you will need to decide which strategy you will adopt to achieve your return on investment. Our experts will help you to choose the most appropriate plan, creating an investment programme suitable to your needs, whether this is "pure investment " or a "buy-to-let " strategy. We will also assist you in finding the most appropriate location to suit your investment needs.

Maximizing Profit from Off-Plan Investment in France

The Process of Price Increase

1. Purchasing early Prices never remain low for long and, as construction progresses, prices begin to rise steadily. In France, as in any other market, it is important to buy as soon as possible during the early stages of development when prices remain very competitive but are already beginning to rise. Early investors will invariably see the greatest returns.
2. Purchasing the best units Early purchase allows investors to choose the most sought after properties on any given development. The best units always offer higher capital appreciation in the smallest time frame and can often demand the greatest rental incomes. Penthouses are often firm favourites.
3. Price increases as development matures As the development begins to be constructed, the value of the units begins to rise. A completed show home is normally available for viewing at this stage, while buyers are taking less of a risk as they now do not need to rely completely on plans.
4. Price appreciates as more units sell As more units are sold, the price of the remaining units rises. Units sell faster when buyers are able to physically see them. There is often a phase payment structure in place which mirrors the increasing value of the properties. To the early investor this means that, should you decide to sell your property, it will be worth considerably more at this stage than when you made your initial purchase and paid your deposit.

Investment Hotspot - French Alps

The Alpine ski property market is gaining significant momentum as French house prices and mortgage rates hit an all-time low.
According to a report released by French Private Finance, “British buyers can now secure a rate of 3.1% on a 20-year repayment mortgage.” And this particular deal on offer from French bank Caisse D’Epargne “requires just a 20% deposit.”

A director of French Private Finance, John Busby commented, “These are now officially the lowest rates we have seen for French mortgages this century or last.” He estimated the saving on interest payments to be €29,044 over 20 years for a €400,000 mortgage.

In addition, house prices in France continue to fall. Figures published by the National Institute of Statistics and Economic Studies earlier this month recorded a 1.2% annual decline.

Brokers are now reporting an increase in transactions from British buyers, with particularly strong interest in the more expensive regions in and around the Alps and the Côte d'Azur, according to Mr Busby.

Buy-to-let opportunities

For those looking for buy-to-let investment opportunities, rental returns are among the highest for Alpine property investments, as they offer two annual peak seasons. There is incredibly high demand for ski holidays in the winter, but also demand for summer hiking retreats.

What’s more, France offers a tax incentive to owners who rent their property and refund the VAT element of the purchase price on new property with a discount of up to 20% of the gross price.

Final word

Mountain properties have a certain ‘je ne sais quoi’: exploring the outdoors, breathing in the clear cool air and relaxing in front of the fire at the end of the day. Rather than sitting at home and watching your money waste away this winter, why not head to the hills for an investment opportunity that promises to profit your well-being, as well as your bank account.

Financing

Easy access to mortgage lending facilities both in the UK and in France are an added economic factor making investment in French property so easy. Foreigners are able to obtain up to 100% finance for their purchase and interest rates can be fixed or fluctuating, while current rates are a competitive 4%. Generally they are only available for between 10 and 20 years. The maximum term for a French mortgage is 20 years or up to the age of 70, whichever is sooner.

British lenders include Abbey, Halifax, HSBC and Woolwich who are the main providers from the UK. French mortgage lenders are often also subsidiaries of UK lenders such as Abbey National France or Barclays. They will use what is known as the "indebtedness ratio" to calculate how much they will lend you: Rather than multiplying your salary by 3.5 as is done in the UK, lenders in France require you to prove that a third of your total gross monthly income can cover the mortgage repayments. This covers anything from personal loans to utility bills and monthly mortgage payments.

Some developers of new build and off-plan developments offer installment plans over between 12 to 60 months and charges applicable vary according to developer. Although these deals can sometimes be highly beneficial, it is always advisable to shop around for the best mortgage or other finance arrangement to suit your needs.

The Government's Leaseback system offers purchase with guaranteed rental over many years and yields of some 5.5%, more than covering the cost of mortgage interest, as well as allowing a full VAT refund of 19.6%.

Release of equity from investors' other properties, be it in their country of origin or in other investment locations, can also be an easy option to raise finance for a purchase in France.

Banking in France

France has a highly efficient system of banking although you will need to be prepared for more paperwork and waiting than in the UK, particularly when applying for a mortgage or other loan application.

French banks employ particular measures to cut down on fraud and bad debt:  In France banks will issue only Visa and MasterCard debit cards for a yearly fee of around 33 euros, while credit cards are not widely available, as in the UK.  Payments via debit card can be made in one payment at the end of each month rather than immediately.  In addition, a pin code needs to be used with each over the counter card transaction.  These measures successfully cut down on credit card debt and fraud problems notorious in some other countries. 

The largest French commercial banks, such as Societe Generale, Credit Lyonnais, BNP Paribas, Credit Agricole, le Groupe CIC and Credit Commercial de France, rank among the largest banks in the world.  Societe Generale is a favourite amongst foreigners seeking mortgages and seems to require a little less paperwork than in other banks.

French banks can normally offer 100% mortgage finance to foreigners and, with interest rates capped at 4%, a French mortgage is a very attractive option to many investors.  Fixed rate mortgages are available for long terms only of between 10 and 20 years.  The maximum term for a French mortgage is 20 years or up to the age of 70, whichever is sooner.

To Open a Bank Account You Will Need:

• Passport or a residence permit
• Proof of home address in France (eg. a bill or rental/sales agreement)
• Proof of earnings (pay slip or similar) in order to decide upon your overdraft limit

Online banking is a highly popular option and it is widely used, however quality can vary greatly and most banks make a monthly charge for the use of online services.  Websites for the major banks often have an English version for non-French speakers.

Investment Tax Planning in France

Tax on Rental Income (Revenue Fonciere)

For furnished properties, a deduction of a flat 72% is allowed for expenses on incomes up to approximately 76,000 euros and the remainder is taxed at 25%. For rental incomes above 76,000 euros, your tax liability will be calculated according to your actual rental earnings.

For unfurnished properties, a flat deduction of 60% is allowed for income of up to 15,000 euros and the remainder is also taxed at 25%. For rental income above this level, again your liability will be calculated in line with your actual rental income.

As a landlord of furnished property, you are not subject to capital gains tax after 5 years of ownership.

Capital Gains Tax (Impot Sur le Plus-Values)

French capital gains taxes are generally lower than those in the UK, particularly if you are considering a purchase that you intend to keep for at least two years. It is therefore important to calculate your capital gains tax into any off-plan flip or other short-term investments that you will hold for less than two years.

EU residents must pay tax levied at 16% unless you have owned your property for more than 2 years. For property owned for a period of less than 2 years, tax is chargeable at approximately 40% (2006).

You are entitled to a deduction of 10% on capital gains tax if you have held your property for 5 years or more and after 15 years of ownership, you are exempt from capital gains tax altogether.

VAT (Taxe a la Valeur Ajoutee - TVA)

TVA is charged at a higher rate and on more items than in the UK. Currently TVA stands at a rate of 19.6%.

Inheritance/Wealth Tax (Droits de Succession - IHT)

This tax is charged on a complex sliding scale on assets over €76,000. Unlike in the UK, your spouse and close relatives are not exempt from IHT and could pay rates of up to 40%. It is also important to note that if your property is left to an unmarried partner or a friend, the IHT rate goes up to 60% with a tax-free allowance of a mere 1,500 euros.

In order to avoid such high rates of inheritance tax, it is important to speak to a specialist tax advisor who will employ one of two methods: hold your property “en tontine”, a legalized form of joint ownership, or register it through a UK or French company, in accordance with your particular circumstances.

Stamp Duty

Stamp Duty is charged at 6% and is levied in accordance with the value of your property.

Municipal/Local Taxes

Taxe Fonciere is a property tax that consists of taxes for the land and the building. The amount paid varies enormously according to location.

Taxe d’Habitation is similar to the UK’s Council Tax and is a residential tax payable on January 1st each year by the person living in your property. You will be liable for this tax in addition to the Taxe Fonciere if you live in your property as a principal residence.

Taxe Assimilee is charged in areas such as busy holiday resorts where local authorities have to spend more on maintenance and upkeep of public facilities.

Mortgages

Financing your investment property in France is an important decision and, due to France’s popularity as a tried and tested overseas property location, there is now a wide variety of lending services available to choose from and the procedure is normally simple and straightforward.

As a foreigner you can often obtain 100% finance with fixed long term or variable interest rates, currently capped at 4%, making property investment in France an attractive option for those looking to finance their investment with a loan. Mortgages are generally available for between 10 and 20 years or up to age 70, whichever is sooner.

British lenders include Abbey, Halifax, HSBC and Woolwich who are the main providers from the UK. French mortgage lenders are often subsidiaries of UK lenders such as Abbey National France or Barclays. These institutions will use what is known as the “indebtedness ratio” to calculate how much they will lend you: Rather than multiplying your salary by 3.5 as is done in the UK, lenders in France require you to prove that a third of your total gross monthly income can cover the mortgage repayments and this covers anything from personal loans to utility bills and monthly mortgage payments.

Off-Plan Financing

Many off-plan developments in France offer installment plans and figures vary according to developer. They can sometimes offer the most competitive finance options to investors and these are certainly worth considering when looking at mortgage alternatives from your own country.

As always, before making a full commitment, we recommend you discuss your investment strategy with a lawyer, a reputable property agent with experience in the area and even a financial advisor.

Equity Release

Equity release is simply a means to release some cash from your existing property without having to sell up and move house. If you already own property in your own country and would like to borrow against this in an equity release plan, we can introduce you to independent financial advisors who can help you raise the necessary finance for your investment property in France.

If you are in your mid-50's or older and own your own home, you may be able to get a cash lump sum, a regular income, or both, by using an equity release scheme based on the value of your property. These schemes can be helpful in certain circumstances to raise money for a mortgage to finance your France property investment.

Alternative Finance

Not everybody falls into a category and some investors will need to raise finance in an alternative fashion to equity release or mortgage options. There are various other borrowing facilities available to investors in French property.

Double Tax Treaty

The double tax treaty that exists between the UK and France ensures you do not pay tax twice.

Summary

It is clear that France is still a highly beneficial market in which to invest. Investors are cashing in on new niche markets that have recently sprung up at very affordable prices as these offer high returns on investment on both resale and rental options.