Cannes Property as an Investment

Not everyone who wishes to buy property in the South of France is doing so purely as an investment, but by the same token nearly everyone wants their property to be a good investment whatever the underlying reason for owning it.

Holidays and the sheer pleasure of owning a villa on the Cote d’Azur for example can be combined with a healthy income stream even in difficult financial times.

We are unlikely to see the back of this recession for a few years but we who are personally invested in both property and shares, and at the risk of annoying those readers who are heavily or professionally involved in the shares market, my own experience is that top quality property has held its value considerably better than shares have.

This may be because bricks and mortar are more tangible than shares, or because our property is in a prime area and very much in demand, or because companies can stop paying dividends while prime property will continue to achieve a rental return, albeit on a reduced basis in tough times.

Most likely it’s a combination of all three, but for me investment in property in the south of France continues to be the wisest choice.

This from a recent article I read on the South African based “Moneyweb” site:

“Generally, however, property does attract the investor anxious to avoid any significant risk and possibly lacking the resources to go it alone without gearing. By contrast, shares can be right for the person who studies the Securities Exchange daily and is really well informed on the likely future performance of every share he buys. This can be a very time-consuming operation and therefore again not suited to the amateur or inexperienced investor who is probably best advised to stick to property.”

My feeling entirely after what has happened in the last few years.