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Written and Edited by
Adrian Leeds,
Editor of Parler Paris
A weekly e-letter sharing insights, recommendations, tips, and discoveries about property in both Paris and France.
Best of French Property Insider
Special Sample Edition
This could be the year you find your dream property in Paris...One of our readers bought the apartment in the building on the left overlooking this beautiful scene at Métro Saint-Paul!
Paris, France
http://www.FrenchPropertyInsider.com================================
Bonjour,
You are already familiar with Parler Paris -- our twice-weekly newsletter designed to be "Your Doorway to...Working, Living, Investing and Visiting Paris and France!" It's life in Paris from the point of view of a veteran American resident in the City of Light -- me (!). We do our best to chock it full of valuable information about what's hot and what's not, what's going up and what's coming down, who's who and who's not -- all with an insider take on what it's like to see the world from the heart of this magnificent city.
But, Parler Paris is not on a par with French Property Insider. FPI is a newsletter, too, but it's SO MUCH MORE.
If you are contemplating living in Paris or France or dreaming of owning a property for investment that you can use while it earns you a sweet return, then you need more than Parler Paris. You need French Property Insider.
Each issue of French Property Insider is packed with information on how to find great properties in France, how to structure your real estate purchase to minimize your tax and maximize your benefits, what pitfalls to look out for and avoid, how to work with your "Notaire," how to deal with inheritance tax issues, how to eliminate your capital gains tax obligations, how to earn a profit from your French properties and how to build a rich and fulfilling life in France.
French Property Insider also contains listings of apartments and homes for sale as of each writing as a sample of what's on the market at he time. You'll also find articles on culture and lifestyle to help you learn those important things necessary to "fitting in," wherever it is you choose to rent or buy.
And it's all at your fingertips every single week without blinking an eye! Every Thursday...50 issues a year...to keep your fingers on the pulse of the French real estate market. Just imagine how important it is to have this information BEFORE you make a big purchase!
Plus, with your subscription, you will receive FREE reports written by industry experts that are guaranteed to help you make your dreams of living or retiring in France become a reality...
First, you'll get "The Paris Property Report" -- designed to answer all your questions about buying in Paris, compiled by the staff of FPI, and easily worth $35 or more! This one report gives you all the basics of finding and buying property in Paris.
You'll also get, absolutely free, John Howell's report -- "The French Leaseback Program: Are Leasebacks for You?"
John Howell is the lead attorney for the Internationl Law Partnerhsip in London and the co-host of the Living and Investing in France Real Estate Conferences and Seminars. It gives you the background and history of the program, the ins and outs, ups and downs, pros and cons -- the truth about the French Leaseback "scheme." You certainly wouldn't want to make an investment as large as that without being well informed first. This report outlines it all for you -- it's a potential savings of thousands of dollars, not to mention the value of the report itself! Count that at least another $35 value, maybe much more.
And we've added another very valuable report -- "Renting Your Paris Property for Profit!"
This report is the result of many presentations we have given before our conference audiences to inform them of the best way to go about creating a successful and profitable rental property in Paris. If you are thinking for even one split second about buying an investment property you can rent and get a return on investment, then this report is a must. Everything you need to know, including an Excel spreadsheet to help you analyze your potential return!
On top of all that, we're going to save you big bucks on FPI Services!
As a subscriber to French Property Insider, you will be invited to run 3 months of online classified text ads on our Web site absolutely FREE OR 3 FREE text messages inside the weekly newsletter. You can use your free ads to advertise a property you have to rent or to sell. This is a $210 value that's yours FREE!
Searching for the perfect piece of French property isn’t easy. With no MLS service, so many agents to see, the language barrier -- it can be grueling. You can spend days and weeks searching for your dream property and still come up empty handed. But French Property Insider can make this difficult job much simpler.
We offer a customized property search service that will save you a bundle in both time and money. Our team is out on the street everyday searching for properties to meet the specific needs of our readers and clients. We are also contacted by many of the key agencies with properties not even yet on the market! This is a big advantage, since property sells so quickly -- long before it has a chance to be posted in the agency windows or on their Web sites.
Having our pros handle the search will make your life so much easier. And when you subscribe with this offer you can take advantage of $50 off any property search. This can help you get started on the path to owning French property...the easy way!
As an FPI subscriber, you’re also entitled to a discount on our highly informative electronic Insider Paris Guides! There are four guides filled with valuable information about...good value Paris restaurants, how to become a writer in Paris, practical answers to everyday questions and Paris for African Americans.
This discount can save you another $25 or more!
But best of all, you have instant access to the FPI team. We bring you complete property consultation service solutions to help make your move to France much easier including Property Consultation and Search Services, Purchase Assistance, Getting a Mortgage in France, Property Appraisal Service and The "Après Vente."
How much you save using your membership is completely up to you. Add all this up, and you can see that, as a charter member of the French Property Insider, you are easily receiving over $390 in FREE bonuses and services, not counting how much time and money we can save you indirectly just from the knowledge you'll gain!
For the lover of France...the would-be French property owner... the dreamer of a new life in this glorious country...it doesn't get much better than this.
Right now all you will pay is less than 99 cents a week, less than the price of a cup of coffee. For $57.50 a year, you'll get all the services and benefits I've described, including 50 opportunity-packed and informative issues of French Property Insider -- plus you’re saving $31.50 off the regular subscription price of $89.
Or save even more when you subscribe for two years! At $97.50, you'll get French Property insider delivered straight to your electronic inbox 100 times for much less -- 97 cents an issue!
Don't hesitate to become a reader today. Click here to subscribe!
A la prochaine...
Adrian Leeds
Editor, French Property Insider
Email: Adrian@AdrianLeeds.comP.S. Scroll down to see a sample of the Best of French Property Insider and what you are missing every single week...unless you subscribe now! And, don't forget, with your subscription, you'll get the three free reports! Of course, if for any reason you are not completely satisfied with your subscription to French Property Insider, you have my personal guarantee. You can cancel at anytime for a pro-rated refund. No questions asked.
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Special Sample Edition
In this issue:
* The Latest Paris Property Figures
* What is Fractional Ownership?
* How to Save Money Transferring Dollars to Euros
* Understanding Wealth Tax
* Finding Your Dream Property in France
* Renovating Your French Property
* Next Living and Investing in France Real Estate Seminar
* French Property Consultation
* Today's Currency Update from HIFX
* Next Parler Paris Après-Midi
* Hot Property Picks: Paris...One, Two, Three
* Leaseback: Kube Rooms and Bars, France, Mediterranean Coast, Saint Tropez
* Insider Paris Guides: FPI Subscriber Discount
* Classified Advertising: Parler Paris Apartments===============================
Property Prices in Paris Still Holding at Ten Per Cent
By Adrian Leeds
Originally published April 12, 2007Can you see me smiling from there? That's because the new Paris property prices are hot off the press and my little district (the 3rd) is the 3rd highest to have increased in value -- a whopping +14.1% (6,750€/m2). The two districts winning the the race were the 7th with a +15.8% increase (8,307€/m2 -- much to my surprise!) and the 2nd with +15.4% (6,368€/m2 -- not surprising at all!).
These are the figures reported for all of 2006 by the INSEE (the National Institute for Statistics and Economic Studies) as of the April 3rd release.
The average for the year for all of Paris was +9.9% with an average per square meter of 5,772€. The 6th district continues to lead in price per square meter with 8,586€ and fairs well in appreciation with +13.7%. For a while, both the 6th and 7th arrondissements had somewhat leveled, but we're now seeing a new growth. This can be attributed to the number of foreign buyers having increased from as low at +4.2% in the Notre Dame des Champs quarter in 1996 to as high as +21.9% in the Saint-Germain-des-Prés quarter this past 2006. (See the following article about foreign buyers.)
On the opposite side of the price scale, the least expensive district continues to be the 19th with 4,571€/m2 (+12.8%) followed by the 20th with 4,774€/m2 (+9.5%), the 10th with 5,083€/m2 (+9.1%), the 18th with 5,125€/m2 (+13.4%) and the 11th with 5,358€/m2 (+7.4%).
Other statistics of interest are the averages by size of apartment. Large properties of five rooms and more (not counting the kitchen and bathrooms) of prices higher than 873,853€ are showing the most growth of +13.1%. This could also be attributed to foreign buyers with more disposable income to invest.
These statistics are reported quarterly on the Chambre de Notaires de Paris Web site at http://www.paris.notaires.fr and available to everyone, but beware -- understand what an average price really means. (See the following article about how to understand the reported property prices.) Also, without an understanding of the city and its trends, these statistics can only act as a guide to making a good investment. Talk to someone who has an inside track to know "what's hot and what's not."
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The Fractional Ownership Concept
By Steven Navaro
Originally published May 24, 2007Fractional ownership is a hybrid of direct ownership and time sharing, combining the best elements of both. The primary differences are that while timeshares involve many thousands of shares in a large complex with “resort” amenities and costs built specifically for that purpose, fractional ownership is joint ownership by only a few individuals in a single property whose value can easily be determined on the open market and for which there are very few, if any, resort amenities which must be managed and maintained (and paid for!). For Paris Home Shares, the city of Paris is it’s own resort!
Title to virtually all fractional ownership properties are held in the name of a legal entity, which is usually either an American based Limited Liability Company (LLC) or a French based company called a "Société Civile Immobilière" (SCI). Each purchaser becomes a member or stockholder whose sole asset is the property. The benefits are that this allows for orderly transfer of members into and out of the LLC without requiring recording of a change in title, hiring of a notaire, and the corresponding fees, each time a share is bought or sold.
The property is not designed to be rented by each of the owners for income, however members are free to allow family and guests to use unused time, or to exchange time with other members. The reason for this lies in a French business tax of 3% affecting foreign companies, such as LLC's and SCI's
Ownership shares can be devised in a will like any other personal property, bypassing French inheritance laws, however, because the ownership share involves French real estate, French inheritance laws will supercede a benefactor's wishes should there be a conflict.
An owner is usually free to sell his share at any time, at whatever price he chooses, subject only to a limited right of the other members of your group to purchase your share at the same price and terms once you have found a buyer.
French capital gains taxes must be paid when a share is sold and this is the responsibility of each member. Fortunately, French capital gains taxes decrease the longer the shares are held and if owned 15 years or more, no tax is paid.
The LLC is an American corporate entity with multiple members, and therefore required to have both a tax identification number and to file a partnership tax return annually with the IRS. Because the LLC has no income, there should never be any tax liability. If the entity is an SCI, it would correspondingly be required to file tax returns with the French government annually.
All fractional ownership projects will have the normal costs of ownership associated with owning any real property, including the costs of taxes, insurance, utilities, maintenance, management, and supplies. Because fractional ownership properties come fully furnished, a reserve fund is kept for eventual replacement of furnishings that break or become worn out. These costs are assessed to each member either monthly or annually, based on a budget approved by the members each year.
Editor's Note: Steven Navaro will be speaking about Fractional Ownership at the upcoming Living and Investing in France Real Estate Conference in San Francisco July 7th and 8th. Visit http://www.frenchpropertyconference.com/LIF_SF_AF_July_2007/home.html for more information and to register now!
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Transferring Dollars to Euros?
Here's How to Save the Most Money
Originally published April 26, 2007When it comes time to make a purchase, it's natural for us to just contact our banks and ask them to wire transfer X amount of dollars to an account in France, converting the dollars to euros in the process. But think again. This is a big source of revenue for commercial banks...by adding commissions to the transaction. And that could cost you PLENTY.
HIFX is the currency broker we recommend to save you approximately one-half the cost of the commissions your commercial bank will charge when converting dollars to euros.
To prepare for the transfer, well in advance if you like, open and account with HIFX. It's simple.
1. Contact HIFX:
Brian Westwater, Consultant
Private Client Services, HIFX, Inc.
250 Montgomery Street, Suite 910
San Francisco, CA 94104
Email: Brian_Westwater
http://www.hifx.comBrian will send you the terms and conditions to read and sign.
2. Provide two forms of authenticated* identification: either a black and white copy of your passport photo page or photo ID drivers licence and one household utility bill, credit card or bank statement less than 3 months old (a mobile phone bill is not acceptable).
You are now ready to instruct a currency trader with your
currency purchase or sale order over the telephone.3. Contact your HIFX dealer (between 8 a.m. and 8 p.m. Monday - Thursday, 8 a.m. to 6 p.m. Friday) to discuss your currency transaction: +1 (415) 678 2770
The dealers can explain suitable strategies and the mechanisms available to you but the decision to proceed is yours alone. HIFX can only act upon your specific instructions. It is important that you understand that the currency markets are prone to be volatile.
4. Having agreed a price you cannot change your mind as HIFX will buy the currency straight away. Therefore, if you are subsequently offered a better rate elsewhere, or the market improves, you cannot amend the agreed contract. Please note that the dealer's telephone lines are digitally recorded at all times.
5. Once you have instructed HIFX to buy currency at an agreed rate, you will receive a Contract Note (invoice). This gives confirmation of the amount of currency bought and the exchange rate achieved. This will also contain a Telegraphic Transfer form to instruct your bank to send funds to the HIFX client trust account.
6. Finally, HIFX requires details of your onward payment instructions to enable your currency to go direct to its destination. Please allow sufficient time for your funds to progress through the various overseas banking systems.
Editor's Note: If you have given HIFX an instruction to try to achieve a target exchange rate then no funds are required until that level has been breached. The HIFX service includes one free overseas Telegraphic Transfer payment per trade (assuming that you have completed the marketing section on page 3 of the terms and conditions). Should you require several transfers, there will be a charge small charge per extra Telegraphic Transfer This does not apply to a 'regular payment plan' Some overseas banks can make a charge to receive funds,however HIFX now guarantees that you will not have to pay this fee. If, in the unlikely event, you are charged HIFX will pay the fee. Please note that HIFX contracts to buy currency for physical delivery only. This means that you are buying/selling currency for a specific purchase or sale and not for speculative gain.
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What is Wealth Tax?
By John Howell, Partner in The International Law Partnership
http://www.lawoverseas.com
Originally published April 19, 2007Taxes in France for Non-residents
Personal taxes - Impôt de Solidarité sur la Fortune ISF - (Wealth Tax)
A person resident in France for tax purposes and non-residents with substantial assets in France , (€716460 for 2002) must, every year, submit a wealth tax return.
This must show the value of all of that person's assets located in France, valued as at 1st January of each year.
This will normally be the person's house, car and the balance on his bank account.
The value to be used when declaring the value of the house is the official valeur cadastrale. The basis of the tax calculation is the same as for the inheritance tax.
The tax payable are calculated according to a sliding scale between 0.5% and 1.5% of the value of the taxable estate.
The wealth tax return must be paid to the Authorities at the latest on 15th June of each year.
Editor's Note: John Howell is co-hosting and will be presenting at the upcoming Living and Investing in France Real Estate Seminar, October 13, 2007 in Paris, France.
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Finding Your Dream Property
By Adrian Leeds
Originally published May 31, 2007The Real Estate Agency Landscape
There is no MLS (Multiple Listing System) in France with and an abundance of independent real estate agencies -- 4,000+ in Paris and 11,000 in France. There are a few national networks (e.g. Fédération Nationale de l'Immobilier [FNAIM]), some franchises (e.g. Century 21) and trade associations (e.g. Syndicat National de Professionels Immobiliers [SNPI]. However, there is a limited sharing of commissions among agencies and inventory is normally limited to the neighborhood.
We see this changing with the popularity of the Internet as more online resources are available all the time, which makes it somewhat easier to find properties, but as importantly, makes it easier to compare the quality and price of properties.
One very important thing to keep in mind when searching for properties, which we find true primarily in such a competitive market as Paris: properties advertised on Web sites, in magazines and even agency windows have either been sold and not yet removed from the advertising or have been on the market a long time...for good reason. Really saleable properties are sold before the agency has an opportunity to advertise them openly as there are so many ready buyers! To find these properties requires direct contact with the agencies and owners at the moment the properties go on the market!
Set Your Goals...What and Where Should You BuyThis is the most important first step in the process -- to determine your specific goals before you set out to look for properties:
* Will it be your primary or secondary residence?
* In which areas do you want to live?
* Can you can maximize your cost vs. space by living in less-centrally located areas?
* Will you want to offer the property for short term rental or long term?
* How important is it to be near tourist areas and attractions?
* Does it need to be close to the Métro and/or RER with easy access to airports?
* Is there access to businesses, schools, family-related amenities?
* Is it strictly an investment to gain the highest ROI?Then ask yourself even more specific questions about your needs and desires:
* You are looking to buy an apartment? loft? duplex? Hôtel Particulier? Office space?
* With a minimum of how many square meters? (1 square meter = approximately 11 square feet.)
* There must be how many separate WC's, and a minimum of how many bathrooms?
* Do you require a bathtub? or shower?
* The kitchen must be a separate room? Or open to the living room?
* You need a dining area to seat a minimum of how many people?
* The building must be new/modern? Old (16th, 17th, 18th, 19th century)? Haussmannian and must have a look or style of (brick, stone, etc.)? Or are you indifferent?
* You require that the building is In good condition? Of high standing? Or are you indifferent?
* You will accept an apartment as low as what floor (ground floor is "0") and you will go as high as what floor without an elevator?
* Will you need to have parking close by? To rent? Or to buy?
* Do you require: Terrace? Balcony? Garden?
* Required characteristics:
* Listed in order of importance, must the property have:
View? Proximity to a desired location? Calm/quiet? Brightness? Space/size? High ceilings? No renovation? Specific exposition (west, south, etc.), etc., etc.The more specific you can narrow the search, the more successful you will be!
Properties For Sale by Owner
Properties are often advertised in various newspapers and publications by their owners, without agency fees. "Particulier à Particulier" is a weekly publication issued every Thursday listing these properties. Offerings are also listed at the Web site: http://www.pap.fr
The asking price of properties includes any agency commissions, normally 5%. Properties for sale by owner are not necessarily less expensive than those offered by the agencies as sellers are most likely to try to achieve the full market price. Often a seller will enlist the help of agencies, but advertise the property themselves in these publications.
We find that owners representing their own properties can often be the most difficult to deal with, as they are not real estate professionals, and may or may not follow the rules of business etiquette as well as the professionals.
Deciphering French Real Estate Advertising
You're looking for French property. Most classified ads are in French...of course (although some web sites now offer translations). You may know lots of the words, but not necessarily the terms relating to property. Test your ability to decipher this ad BEFORE using the glossary (a translation follows):
75 PARIS 3ème ardt, adresse : rue Charlot, proximité : Marais
Vente - Appartement - 5 pièces - Ancien - 100m².Rue CHARLOT IIIème dans bel immeuble du XVIIIeme, en rez de jardin sur une grande cour pavée et fleurie. un grand salon avec une cheminee, une salle à manger, une cuisine équipée, deux chambres, deux salles de bains. chauffage ind gaz / parquet/ cheminee / clair / calme. parfait état / gardien Infos + : Rénové, Rez-de-chaussée, 3 chambres, 2 salles de bains, Chauffage au gaz.
ANCIEN: older building
APPARTEMENT: apartment
ASCENSEUR: elevator/lift
ASSEMBLÉE DES COPROPRIÉTAIRES: general meeting of owners
BALCON: balcony
BUANDERIE: laundry room
BONNE DISTRIBUTION: well laid-out floor plan
BOX: parking
BUREAU: study/office
CARACTÈRE: character, something unusual
CARRELAGE: ceramic tile
CAVE: cellar
CC CHARGES COMPRISES: charges included
CHEMINÉE: fireplace
CONFORT: comfortable
COPROPRIÉTÉ: condominium, co-op
CHAMBRE: bedroom
CHAUFFAGE: heating
CONGÉLATEUR: freezer
COULOIR: hallway
CUISINE: kitchen
CUISINE AMÉRICAINE: open kitchen
DIGICODE: entry code system to building
DOUBLE EXPOSITION: double exposure
DOUBLE SÉJOUR: large living room
MOULURES: molding OCCUPÉ: occupied
PARFAIT: perfect
PARKING: parking
PARQUET: hardwood floors
PARTICULIER: owner listing
PARTIES COMMUNES: common areas
PIÈCE: room (not kitchen or bath)
PLACARDS: closets
PDT, PIERRE DE TAILLE: cut stone building
POUTRES: wood beams
PROPRIÉTÉ: property
RANGEMENTS: storage, cabinets, shelving
RAVALÉ: restored
RDC, REZ-DE-CHAUSSÉE: ground floor, street level
RÉAMÉNAGER: to be renovated
RÉCENT: recently constructed building
REFAIT NEUF: newly remodeled
RÉFRIGÉRATEUR: refrigerator
SALLE D'EAU: bathroom with shower and sink
DOUBLE VITRAGE: double-paned windows
DOUCHE: shower
DRESSING: walk-in closet
ENSOLEILLÉ: sunny, lots of light
ENVIRON: approximately
ÉQUIPÉE: fully equipped
ÉTAGE: floor
FOUR: oven
GARAGE: garage
GARDIEN: concierge/caretaker
HAUSMANNIAN: building from Haussmann era - 19th/20th century
HONORAIRES: fees
HORS CHARGES: charges not included
HOTTE: ventilation hood
HSP, HAUTEUR SOUS PLAFOND: high ceilings
IMMEUBLE: building
INDEPENDENT: independent, separate
INTERPHONE: intercom system
LAVE-LINGE: clothes washer
LAVE-SÉCHAGE: clothes dryer
LAVE-VAISSELLE: dishwasher
LOCATION: rental
MEUBLÉ: furnished NOTAIRE: legal notary
MOQUETTE: carpet
SDB, SALLE DE BAINS: bathroom
SERVICE: maid's room
SOUS-SOL: below ground
SOLEIL: sunny
STANDING: luxurious, grand standing building
SUR COUR: overlooking courtyard
SUR JARDIN: overlooking garden
SYNDICAT DES CORPROPRIÉTAIRES: collective body of owners of common property
TABLE DE CUISSON: range
TAPIS: area rug
TAXE FONCIÈRE: annual real estate tax
TAXE D'HABITATION: annual occupancy tax
TERRASSE: terrace
TOMETTE: red clay tile flooring
TRAVAUX À PRÉVOIR: work to be done
VIDE: empty
VITRÉE BAIE: bay window
WC: toiletTranslation:
For sale: apartment, 5 rooms, old building, 100 square meters, rue Charlot, 3rd arrondissement, in a beautiful building from the 18th century, on the ground floor garden on a large cobblestone courtyard planted with flowers. A large living room with a fireplace, dining room, equipped kitchen, three bedrooms, two bathrooms. Individual gas heating, parquet wood flooring, sunny/clear, quiet, in perfect condition, concierge. More information: Recently renovated, ground level, three bedrooms, two bathrooms, gas heating.
How did you do?
Web Site Property Listings
Many agencies and associations now list their properties for sale on their Web sites. Searching the Internet is a useful tool in determining which agencies have the best properties or types of properties that fit your parameters, price comparisons for different districts, and other valuable information:
http://www.fnaim.fr/
http://explorimmo.com/
http://www.seloger.com/Agency Listings
Agencies traditionally promote their listings in the windows of their offices. Read them for fun, but make contact directly with the agents to learn what's REALLY on the market! To find a reasonable selection of properties to visit, one must visit many of the agencies in any one district. No one agent can be your advisor and no matter how much you like the agent, do not trust the agent to provide unbiased advice as a property consultant would. Remember, he agent's only interest is selling the properties he/she lists!
Insider Information
Nothing works better than a tip from someone on the "inside" about a property about to go on the market! The "guardiens" of the buildings often know if someone is planning on selling, so if you're interested in a particular "quartier," and see a building that you fancy, don't hesitate to ask the guardian.
Editor's Note: No matter how or what methods you choose, searching for properties is a daunting task. If you don't have time to do the search yourself, you will find that professional search consultants well resourced can save you time and money plus protect you from making costly mistakes along the way. Visit http://www.frenchpropertyconsultation.com for more information.
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Fixer Uppers: Renovating Your French Property
By Adrian Leeds
Originally published May 10, 2007Don't expect to find a property in Paris or anywhere in France that doesn't need some renovation. French owners tend to live in a house or apartment many years without having done much to keep it up to date, and buildings can easily be at least one century old, if not several.
If you do find a property that is move-in and perhaps only needs your decorating touches, then aren't you lucky!? But, my guess is that you're going to pay dearly for it when you buy it in such great condition.
In most cases, renovating your new property purchase is the best solution, because you can renovate and decorate just exactly as you like. This means, that if your purchase is an investment for short or long term rental, you can build in the amenities a well-occupied rental requires.
Before you sign the "Promesse de Vente," the seller must provide certain certification: the "Loi Carrez," the exact habitable space in square meters; the presence of lead, asbestos and termites; the energy efficiency, risks to natural disaster (such as flooding), measurements and what work has been voted on by the homeowner's association. This information is helpful when preparing for you renovation. If the walls (or other) prove to contain some lead (and most do!), then you must provide a copy of the certificate to the contractor or other workers to protect your liability.
Most renovation work, building work and material purchases (as part of a renovation through a registered builder) are subject to VAT at only 5.5% This makes a significant difference to the total cost of work. The reduced TVA rate came about for a couple of reasons - both to defend jobs in the building profession in France, and to reduce the number of people working on the black economy. The primary restriction is that the reduced rate only applies to work that is performed by a registered tradesperson. If you buy the materials and do the work yourself you will pay 19.6% VAT.
Some of the renovation expenses and taxes can be deducted when reporting capital gains -- work which improves the property and is not merely cosmetic. For example, a second bathroom constitutes an improvement, but new carpeting does not.
Choosing to work with "au noir" (black market) labor, is not wise as it is risky and you cannot deduct the cost of any work you've had done "under the table." For a tax as little as 5.5%, we recommend working with licensed contractors and subcontractors.
The technical aspects to keep in mind before you begin are of course, the state of the electrical system -- paying attention to the grounding and the safety of the current system. Be prepared to update it, add plugs and breakers. Be aware of the heating system and its efficiency. Gas heating is best, but there are new efficient electrical systems on the market. If your heat is "chauffage collectif" (central heating for the entire building), you may want to add a space heater or two to "fill-in" on cold days when the collectif heat isn't operating.
When considering adding an additional toilet, try to place it near existing sewage pipes. If not, you may be required to use a "Sani Broyeur," or electric toilet. While these have greatly improved over the years, they are still noisemakers and are likely to cause maintenance problems.
Don't tear down walls till you've double checked if they are supporting walls or not. Supporting walls cannot be tampered with unless you have express permission from the homeowners association. This is when a licensed architect is virtually indispensable -- as they are well-versed in dealing with problems of this sort. We recommend leaving the walls in tact as much as possible!
Air conditioning is a feature that has become important to luxury rentals, but air conditioning is not always that simple to install due to restrictions to exterior walls and common areas. Be sure to ask your architect or contractor what system will work best for you before forging ahead.
Depending on the nature of your project, you may either choose to contract the work yourself or hire an architect or interior designer. If you do the work yourself, expect to be on the premises almost daily to ensure the work is being done correctly and on time. If you hire an architect, decorator or project manager, then you hire his/her experience, often well worth the added expense, even on small projects.
One thing I can almost guarantee...any renovation you do is likely going to take twice the time originally estimated and cost twice as much. It almost never fails to prove to be true...but still well worth the time and expense if you want to enjoy your new French home to the fullest.
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The Next
Living and Investing in France Real Estate Conference!
October 13, 2007 at Chez Jenny, ParisIf you've always dreamed of owning your own "pied-à-terre" in Paris or home in the Provinces of France, perhaps as a future retirement home or for now as investment property rented part of the year...this power-packed one-day conference is a MUST.
Hosted by Adrian Leeds, long time resident of Paris, Editor of the Parler Paris Newsletter and French Property Insider weekly E-zine and John Howell, lead attorney for the International Law Partnership, London, this one day in Paris will point you in the right direction to make it really happen! Includes three course lunch and cocktail reception.
Soon to be announced on http://www.frenchpropertyconference.com/ or for more information, email Schuyler Hoffman at RSVP@adrianleeds.com
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Property Consultation, Search and Relocation Solutions
http://www.FrenchPropertyConsultation.comLet French Property Insider expert property consultants find your dream home in France for you. We consult with you to help you make the best decisions, ferret out the finest properties to meet your criteria, schedule the visits and accompany you, negotiate with the agencies and owners, recommend the Notaires and other professionals, schedule the signings and oversee the purchase with you from start to finish! You could never do it so easily on your own. Let us take the time and effort off your hands.
FPI Offers More Relocation Solutions!
Moving to Paris? Our experienced relocation expert will make your move easy and hassle-free. We offer complete property and relocation services normally only provided by employer hired relocation firms...but at a price much more affordable for individuals.
Download Complete Brochure
http://www.frenchpropertyconsultation.com/fpibrochure.pdf===============================
TODAY'S CURRENCY UPDATE
Visit the FPI Web site and click on the link on the left panel or click here for Currency Convertor by HIFX: http://www.frenchpropertyinsider.com/hifxcurrencyconversion.html
for up to the minute conversions of all major currencies.Compare currency values easily and quickly by visiting:
http://www.hifx.co.uk/currency/converter_all.aspCharts
http://www.hifx.co.uk/members/charts.asp
The charts below are updated every ten seconds.The prices shown are "inter bank" exchange rates and are not the rates that you will be offered by HIFX. Your rate will be determined by the amount of currency that you are buying. Please speak with an HIFX dealer or your consultant for a live quotation.
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Parler Paris Après Midi
http://www.parlerparis.com/apresmidi.htmlCome for a drink and to meet and chat with other readers in Paris...
The next gathering is September 11, 2007, and every second Tuesday of the month.
Please note: There will be no meeting in August.
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HOT PROPERTY PICKS: Paris... One, Two, ThreeEach week French Property Insider features a range of properties which we believe are on the market at the time of writing. These properties are featured in order to give readers a sample of what is currently available and a working example of prices being asked in various regions of France and districts of Paris.
As we are not a real estate agency. These properties do not constitute a sales listing. For those readers seriously interested in finding property in Paris or France, you can retain our services to do the whole thing for you. For more information, visit http://www.frenchpropertyconsultation.com
*** Paris, 1st Arrondissement, 1 Bedroom Apartment, approx. 56m²
In a beautiful 18th century building near Palais Royal, on the fourth floor with elevator, this bright apartment is in perfect condition. Living room, bedroom, bathroom. Renovated with wood floors, double glazed windows.
Asking Price: 535,000 € + 2.5% Finder's Fee
*** Paris, 2nd Arrondissement, 2 Bedroom Apartment, approx. 60m²
In the heart of Montorgueil, on the second floor of a lovely older building with elevator. Living room, 2 bedrooms, bathroom, separate kitchen, cellar. Engaging view with southern exposure. Wood floors, moldings, fireplace.
Asking Price: 515,000 € + 2.5% Finder's Fee
*** Paris, 3rd Arrondissement, 3 Bedroom Apartment, approx. 100m²
A bright, quiet, well designed apartment with a terrace. Large living room with four windows on the terrace, large American style kitchen, 3 bedrooms including one master with bathroom and separate toilet, plus an office, another bathroom and separate toilet.
Asking Price: 890,000 € + 2.5% Finder's Fee
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LEASEBACK NEWS FROM IMOINVEST
http://www.frenchpropertyinsider.com/sales/leasebacks/lb_list.php
KUBE ROOMS AND BARS
France, Mediterranean Coast, Saint TropezStudio 24m² to 30m² €326,000 to €581,000
One Bedroom 64m² to 93m² €1,107,000 to €1,498,000
NEW LISTINGGuaranteed Buy to Let - Leaseback
GUARANTEED RENTAL INCOME UP TO: 3.50%
LEGENDARY ADDRESS, FAMOUS ICE BAR
Following the exceptional success of the opening of The Kube, one of Paris' chicest hotels, please welcome The New Kube, a luxury new residence at the gateway to Saint Tropez. This innovative resort is located 4 minutes from Saint Tropez harbour, 10 minutes from Gassin village, 8 minutes from Ramatuelle beaches and 1h and 15 min from the Nice Côte d'Azur Airport. Exuding the very best in quality and refinement this residence will be unique to this region.The residence will comprise 41 rooms and suites of which 28 have a private garden, balcony or terrace in a landscaped sea view park. Private reception over a water pool leads you directly into the ambiance and experience that is The Kube. The entrance bar and reception room starts this experience, then in the lower levels discover the famous Ice Bar trade mark. From the roof top Sky Bar you will profit from the panoramic sea views over the bay. Resort facilities include a lounge-restaurant, a Sky Bar on the roof, an ice bar at garden level, a spa with massage, sauna and private swimming pool as well as a fitness room. In addition, the residence offers a deck with courtesy boat transfer available only to clients of the residence, from the private pier to either the Port of St Tropez or to one of the many beautiful sandy beaches such as Pampelone. Resort Kube offers a conference room with a capacity of up to 100 people. In addition, residents will have access to a private car park.
Excellent access will allow you to fly into either Marseille or Nice International Airport with only a short drive after, especially with the efficiency of the motorway and the new road into the area. Apartments will be finished to the highest standards using only the finest materials. Many will have views of the sea or into the spa gardens. This is a superb investment opportunity offering a guaranteed rental return and offers one week per year of personal usage!
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SEEKING A MORTGAGE IN FRANCE?
When you make a purchase as important as a piece of real estate in a foreign country, you want to know that you can trust the people you are dealing with. Adrian Leeds has developed a network of professionals that meet only the highest of standards. With the expertise and experience of Adrian and her team, you can depend on getting the best advice and support to feel completely confident that you are making an informed investment decision.
Let us help you secure a mortgage in France at a competitive interest rate. Visit http://www.frenchpropertyloan.com for more information or contact Loan@AdrianLeeds.com
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We wanted better guides.
So we wrote them.Insider Paris Guides are written for people who love the City of Light. You'll get a Paris insider perspective on Restaurants... Making a Life... Black Culture... Expat Writers...
French Property Insider subscribers receive a discount of 10% off any guide and up to 25% off the entire purchase (if two or more guides are purchased at the same time). Subscribe to FPI today and save!
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THINGS YOU NEED TO KNOW
To access password protected pages: click on any of the links on the left panel of the home page of FrenchPropertyInsider.com under "Subscriber's Only," then type in your personal username and password.
Past issues of FPI are available on the website. You will find the
"Past Issues" link on the left under "Subscribers Only" or by going to
http://www.frenchpropertyinsider.com/members/content/pastissues/index.htmlTo receive your free French Leaseback Report or the Paris Property
Report, click on
http://www.frenchpropertyinsider.com/members/content/reports.html================================
HELPFUL CONVERSIONS FOR REAL ESTATE1 square meter = 10.7639104 square feet
1 hectare = 2.4710538 acres
For more conversions, refer to: http://www.onlineconversion.com/
==== CLASSIFIED ADVERTISING ===
PARLER PARIS APARTMENTS
http://www.parlerparisapartments.com
Email: apartments@parlerparis.comWelcome to your home in Paris. Home is how you will feel in a private apartment in Paris that has the "seal of approval" from Parler Paris Apartments and me, Adrian Leeds.
Parler Paris Apartments offers high quality accommodations to make your stay in the City of Light as enjoyable and memorable as possible. We at Parler Paris know each and every apartment owner or manager personally, and stand behind the quality of those we represent. We understand your needs and desires, all the small details that make a rental apartment a warm and welcoming home – and a much better alternative to an impersonal hotel!
Parler Paris Apartments is administered and serviced by the same great team as Parler Paris, French Property Insider and French Property Consultation. You can trust that Parler Paris Apartments and all those with whom it is associated will do their best for your 100% guaranteed satisfaction.
NEW! Le Penthouse Voltaire
American comfort with French flair! Overlooking Boulevards Richard Lenoir and Voltaire, in the 11th Arrondissement. This three-bedroom, two-bath luxury penthouse with wrap-around balconies and spectacular views, sleeps 6.
Reserve now! Visit http://www.parlerparisapartments.com/rentals/voltaire.html
or email: Apartments@AdrianLeeds.com================================
SUBSCRIBE TO PARLER PARIS
If you're not a regular reader of the Parler Paris daily e-letter, and would like to be, simply enter your e-mail address here (it's free!): http://www.parlerparis.com
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Copyright 2008, Adrian Leeds®
Adrian Leeds Group, LLC, http://www.adrianleeds.com
