An important decision when dealing with French mortgages is choosing a fixed mortgage rate or a variable mortgage rate. Both types are very popular, but your final decision depends on whether you want more security or more risk. If you’re looking for security and guaranteed monthly payments, then you would most likely want a fixed mortgage rate, but it comes at a higher rate. On the other hand, if you’re interested in an initial lower mortgage rate, you would prefer a variable rate. However, there is more risk involved with this option because the mortgage payments are not be as stable.

The Knight Frank Global House Price Index has shown that property prices in major locations around the world have increased by 53% in the first three months of 2010. Furthermore, for the first time since 2008, annual price inflation for all global real estate markets has again turned positive. However, Asia is experiencing the sharpest increases and the biggest recoveries, while many European countries have not yet recovered.

In Europe, the most positive markets are in Scandinavia, Norway, Sweden, and Finland. Countries with bigger economies, such as France and England, have been slower at recovering as they’ve been more affected by the weakness of the Euro and the debt crisis.

According to a survey taken by Savills International and HomeAway.co.uk, France was among the most popular second home locations in 2009. The research found that these French holiday home investors are composed of buyers with significantly higher disposable incomes who are less reliant on mortgages. Savills stated that “in 2010, the overseas second home market will be characterized by cash rich, lifestyle buyers benefiting from lower prices in traditional, established holiday home hotspots.”

This is due to price decreases of up to 30% for properties in popular holiday locations, such as France. More than 20% of the survey respondents stated that they are planning on purchasing additional holiday properties in the future, as long as market conditions and mortgage availabilities improve in those countries.

This is great news for the second home property market in France, especially in Paris.

Key French tax deadlines to note for 2010

30/04/2010 is the deadline to submit :

• 2009 VAT declaration for French leasebacks
• 2009 income declaration for furnished French rental property
• 2009 French income tax declaration for French "Société Civile Immobilière" or “SCI”s

15/05/2010 is the deadline to submit the 2009 declaration of foreign company shareholders (or be subject to the 3% tax)

31/05/2010 is the deadline for French residents to submit their 2009 income tax declarations

15/06/2010 is the deadline to submit your 2009 declaration for the French “Impot sur la fortune” or “Wealth tax” if you are a French resident

30/06/2010 is the deadline for non-residents to submit their French income tax declarations for 2009

15/09/2010 is the deadline to pay your 2009 income tax bill

15/10/2010 is the deadline to pay your 2009 property tax bill or "Taxe fonciere"

15/11/2010 is the deadline to pay your 2009 occupation tax or “Taxe d’habitacion”

15/12/2010 is the deadline to pay your 2009 professional tax or “Taxe professionelle”

September 2009 - The UNTWO Tourism Barometer has just released tourism statistics for 2008 and France wins again as the most visited country in the world.

Ranked by number of international tourist arrivals in 2008:

1. France- 79.3 million
2. United States - 58.0 million
3. Spain - 57.3 million
4. China - 53.0 million
5. Italy - 42.7 million
6. United Kingdom - 30.1 million
7. Ukraine - 25.4 million
8. Turkey - 25.0 million
9. Germany - 24.9 million
10. Mexico - 22.6 million

Source : UNTWO http://www.unwto.org/facts/eng/pdf/barometer/UNWTO_Barom09_update_sept_en.pdf