The average price of property in France has set a new record during the fourth quarter of 2010, with an increase of 8.7% on the year, announced Century 21, one of the world’s largest estate agency networks with 117,000 agents in 68 countries.

Compared to the first semester of 2008 where the highest average was 2 549 € per square metre, we’ve seen an average of 2 580 € in the fourth quarter of 2010.

“The decline in prices recorded during the financial crisis which lasted from the second semester of 2008 to the first semester of 2009 has now completely faded”, observed Century 21.

However, this new record masks profound disparities between Paris and its suburbs, where prices have climbed a lot in 2010, and the more moderate rest of the country.

The average price rose by an average of 18.46% over 12 months in Paris, and by 7.8% in the capital’s suburbs, according to Century 21′s figures, based on the 49, 700 transactions the network carried out in 2010.

However certain areas saw their prices fall in the second semester of 2010, such as Alsace, Burgundy and Nord-Picardie.

For the year overall, Haute-Normandie is the only region to have seen its prices fall (-1.9%).

Century 21′s figures concerning Paris confirm the predictions of the Chambre des notaires, who had foreseen a 20% rise over the year in December.

Nonetheless, the records do mask a clear deceleration in the second semester of 2010, a period during which prices rose by less than 1% compared to the first six months of the year.

Considering the frailty of households’ solvency and in spite of the new mortgage loan with reinforced 0% interest, Century 21 is staying prudent.

The network estimates that the possibility of arise in house prices in France of between 2 to 3 % should not be discounted, but notes that the evolution of the market will mainly depend on interest rates.

“This rise in prices is very closely linked to and dependent on interest rates as these days, most other levers permitting access to housing have been called upon already,” concludes Century 21.

Sextant French property is a network of more than 160 estate agents and 50 developers in France offering a selection of 12,000 French property for sale.

They also offer French property investment such as French Leaseback properties

In order to improve their service to their customers they set up a division who can also help customers who bought through a different French estate agent.

The French Leaseback Scheme can be a great way to buy new build or newly refurbished property if getting a fixed rate of return on your investment is a high priority and you don’t mind restrictions on the amount of time you can use it.

Essentially what you are doing when you enter this type of contract is buying a freehold property but granting its lease to a holiday company for a period of between 9 and 11 years where the rental return is fixed and guaranteed regardless of whether it is rented out or not. They are hence normally located in popular holiday resorts. It is possible to get a higher return from renting the property during the summer months yourself but this of course brings with it a risk and hassle factor.

Refunded VAT:

One of the great bonuses of this scheme is that the purchaser gets a full refund of the TVA (VAT) of 19.6% if it is a new build property which is either refunded 6-9 months after the purchase or paid and reclaimed by the developer in which case the purchaser never has to pay it.

At the end of the initial lease period, the holiday company usually reserves the right to lease it again until the 20th year after its construction but this is very rarely insisted upon if the client is not in agreement.

If you choose not to lease your apartment out again or sell it then you will have to pay a proportion of the TVA according to how many years are left outstanding from the first 20 years. For example, if the property has been under lease contract for 11 years and there are therefore 9 years remaining, then the amount of TVA that must be paid back to the French government is 9/20ths of the TVA. After 20 years TVA is no longer payable. Remember, if you sell the property during its lease contract then it must be sold with the contract intact to a likeminded individual who is prepared to see the contract through.

Guaranteed Return on Investment:

The guaranteed investment return will typically be around the 5% mark net of all costs tax-free as you benefit from “non-professional lessor of furnished property” status (LMNP). This in effect means that you will receive as much interest as you would in a high yielding savings account as well as the opportunity to gain from capital appreciation of the property.

Personal Use:

Leasebacks often allow the owner the option to occupy the property for a number of weeks a year in return for slightly lower investment yields. If you choose not to use the weeks then you will usually get a higher annual yield.

The Management Company:

An experienced management company will take care of the entire maintenance of the apartment or villa, usually with hotel services available such as reception, house linen, well-kept gardens, swimming pools and 24hr security.

Furnishing:

All furnishing, decoration and electrical appliances are supplied and taken care of by the management company.

Accounting Impacts During the Leaseback’s Term

* Deductibility of the loan interest

* Deductibility of miscellaneous expenses (property taxes)

* Amortisation deductibility – 3.3% per year for 30 years. However, they are deferred and not imputable in regard to the business income.

After the leaseback’s term, the deferred amortisation can be imputed and set against the received net rents.

Notary Fees and Sales Process:

The sales process follows the same routine as for new build properties with the same corresponding notary fees: 3% on new builds and for refurbished leaseback properties you will have to pay the usual 7-8% notary fees on the property before refurbishment – working out at between 4% and 6% of the value of the purchase price.

Better than Timeshare:

Unlike time share schemes, the owner actually sees a return on his/her investment through annual rental yields and also appreciation in the value of the property which can be substantial – so it is not money down the drain. The bonus though with these schemes is that, like time share, the property will be well maintained by the holiday company with no responsibility for changing of linen and cleaning – you simply turn up during your chosen weeks and enjoy it!

Nick Dowlatshahi is the managing director of Leapfrog Properties, a UK specialist agency in French property. Leapfrog offer an online database of up to 200,000 properties for sale in France plus a personal service from fluent French speakers to help you find, view and buy your property. Leapfrog Properties website is at http://www.leapfrog-properties.com.

Purchasing property for sale in France so that you can lease it out when it is not being lived in is becoming an increasingly favoured thing to do. For this to be done successfully the situation of the property is really fundamental. The property needs to be somewhere where people would want to come to. France is a very large country and consequently there are only certain sectors where tourists visit. If your house is not in a well-known area such as Brittany or Provence, it is potentially difficult to attract visitors. But, homes in less well-known areas will be less expensive and there won’t be as much market competition. It is essential to come to a medium, somewhere that is not too expensive and somewhere that is relatively familiar to people. Seeking out property for sale in France needs a lot of research and resources.

Properties in urban areas are cheaper but more difficult to lease out than those in countryside areas as people are usually favour tranquillity and a bit of peace and quiet over hustle and bustle. However properties can be too rural and cut off from services which some potential clients can frown upon. Most visitors will, with any luck, return if you can impress them enough.

To generate the greatest revenue a property that accommodates between 4-5 people is ideal as it appeals to families. The larger properties are popular during the busy seasons but less so in the not so busy ones, therefore it is ideal to have a property that is big, but not too big. Obviously facilities add more to the value of the property (e.g. a swimming pool), however these facilities do incur upkeep throughout the year so be wary of this.

It is essential to have as low maintenance property as possible. Homes that are not rented out for 24 weeks of the year need to be kept dry and secure. It is ideal if you can seek out a friendly neighbour to keep an look out on the property while you are away or you could even hire someone to maintain the garden and check the property out every once in a while.

Upon purchasing a property for sale in France it is necessary to attract clients to the property. Rental prices in peak periods are a lot higher than in off peak weeks. Thus, take this onboard when you personally want to visit the property as if you are staying there in peak periods you could potentially lose a lot of revenue.

The revenue obtained from the off peak periods is likely to not be very much and the potential property for sale in France could be unhabited for weeks on end despite the price of the rent. The Internet is very helpful in researching what your competitors are charging in terms of hire, you need to find out how swell they are doing at renting out their homes at certain prices and look into the availability of the properties. It is most likely that to begin with your home will be leased out to family and friends; this is fine as it can evade the cost of promoting the property and construct awareness via word of mouth. The Internet is also a good starting place for advertising the property; anticipate to pay £110-160 per year to host an advert on a website.

Purchasing property for sale in France with the purpose of renting it out can be very rewarding. A home in the right situation can allow easy access for you and potential visitors making it very sought after. Even if you don’t generate that much income, you should hopefully be able to make enough to cover the upkeep costs of the home and with a bit of luck you should be able to generate some extra revenue, this can be recycled back into improving your home, again attracting more people and making the property more desirable on the property market.

Daniel Brudgins represents [http://www.frenchways.co.uk/], specialist at property for sale in France [http://www.frenchways.co.uk/]. If you wish to buy a property or have a French house for sale we are here to help you.

A recent phenomenon in the European real estate market is the marked increase in the numbers of foreigners buying property in France. British buyers account for a significant percentage of these foreigners, most probably because of the favourable exchange rate between the Euro and the British Pound; and the lower prices of property in France compared to Britain.

Purchasing property in a foreign country is always fraught with difficulties, mainly because of the different language and the plethora of property laws pertaining to the foreign locale.
It is therefore imperative that the following top 5 tips to consider when buying property in France are taken into account. Being armed with this information will make the entire buying process so much easier and enjoyable.

Tip number 1 is that once you have decided on a budget for the property, the next thing to do is to decide exactly which area you like best. When this aspect has been decided, you need to travel to the area in person to check out what properties are available in your price range; and to see if there is a property that you would really like to purchase.

Tip number 2 is that if there are properties of interest, you need to check all the estate agents in the area to see which one is offering the cheapest price, as all agencies have different prices advertised. The advertised price of a property in France includes the estate agent’s fee, which generally ranges from 6%-10%, and is paid by the buyer. The only cost not included is that of the notary, whose fee is also around 6%-10% (and includes land registry costs and government taxes). The notary is a government official who is impartial – and it is accepted practice for him to represent both sides in a property deal.

Tip number 3 is that even once you have selected an agency, you need to ensure that there is an English speaking agent – or at least one who has a very good knowledge of English – unless, of course, you are fluent in French. Misunderstandings through lack of understanding between the parties account for huge numbers of deals falling through and, in worst case scenarios, getting involved in legal proceedings and/or losing all ones investment.

Tip number 4 is to know that you will have to sign three documents – the first is for the estate agent, stating that you will not approach the seller behind the agent’s back, or buy the same property from another agent. The second is an offer to purchase, which is also signed by the vendor in acceptance of your offer. The third is a legal statement of intent to purchase, at which time a 10% has to be paid. There is then a 7-day cooling off period when either party can rescind its offer. Should the deal fall through, your 10% deposit will be returned to you.

The above information should make buying property in France an easy and pleasurable experience.

Accessu2 is an online company that will be able to help you with Buying Property In France if you need a place to get away from it all. For more information visit the website at http://www.accessu2.com/

French property buying guide for buyers

Researching Property.

Spend some time thinking about:-

What location are you looking for?

Weekendable or half-terms and main holidays?
Within reach of a ferryport or near to an airport?

A mild, warm or hot summer climate?
A mild winter climate or snow and skiing?

Near the coast, rolling countryside or mountain views?
Town, village or rural?
What type of property are you looking for?
A holiday home, a permanent home, income producing or
“get-away-from-it-all”?
Lots of land and lots of upkeep or a small garden and low maintenance?
A restoration project (and the end of carefree holidays)
or renovated and more expensive – bear in mind that property prices in France are cheaper because land is
cheaper, building and restoring costs can be as expensive as in the UK.
Personal use or space for gites
- they say the average gite can make £4,000 per year but a lot depends on number of bedrooms,
off season use (central heating) and marketing, etc, and there are running costs to consider.

Choosing your Property.
There are two methods of choosing your property.You either choose a SPECIFIC property from
our website database (which is automatically updated as and when we are informed of changes) or you choose

the TYPE of property that interests you.If you choose a specific property, you MUST be prepared to drop
everything and get to France as quickly as you can. Whilst we employ the speed of the Internet to keep you
informed and to update our systems, ensuring we are always ahead of printed brochures and magazine adverts

(which have a minimum 4 week leadtime), it should be appreciated that because in France the buyer pays the agency fees

rather than the seller (as in the UK), some owners will put their properties on the
books of more than one French Estate Agent and whilst every effort is made to ensure availability with
our offices, it could be sold by another agent the day after an appointment is made. This is true for everybody
working with French properties.
If you choose the TYPE of property that interests you then this is not a problem.

The Viewing Appointment.
You can have an organised itinerary, reasonable journeys each day and good “value for money”
accommodation waiting for you each night or you can skid up and down the country exhausting yourself – and
France is a big country.Trying to squeeze in 3 or 4 appointments a day, an hour here, a late arrival there
might seem like the best way to cover ground – but mostly, that’s exactly what you’ll achieve – covering ground

and you won’t endear yourself to the French agencies.
Once we understand the property TYPE you’re seeking and the amount of viewing time you want us to
fill, we brief the agents in your chosen area(s). They confirm availability of a number of suitable
properties and we book the amount of time necessary for you to view the selection. This can range from
half a day to 2 full days, depending on the number of properties to see. We then arrange the whole itinerary
into the most efficient travel and accommodation circuit, ask you to confirm that
you are free to accept the appointments and, finally, firmly confirm your appointments with the agents
concerned.
If you are not free to accept the appointments, if you’re waiting for other agency confirmations,
if you have “rest” days in mind, please tell us beforehand. It is far more
preferable to accommodate your needs from the start than begin cancelling confirmed arrangements later.
Having numerous agencies tripping over each other, producing double bookings and cancellations, might
seem like the best way of organising your trip but you really are reducing your chances of success and
when you need to return to France for a second time, you may find you’re not treated as seriously as
you’d like.

We at http://www.frenchways.com maintain over 3000
properties on our website and our offices have over 35,000 more on their books thus ensuring there is always
a selection of the type you like, available for you to view.

Grace Turner is a Director of www.mortgage-calculator-group.com [http://www.mortgage-calculator-group.com] – the website for mortgages in Europe.

For more information about living in France plus thousands of properties for sale throughout France visit www.frenchways.com

With the Spanish property market in sharp decline, France is the number 1 destination for Overseas Buyers. Why France? Traditionally a stable market, with varied landscapes, cultures, style, gastronomy and climate. France has weathered the financial crisis and is emerging strongly from the recession. Although property prices dipped last year during the global crisis, the market has picked up and investors are looking for bargains.

Easy access with many airports distributed across the country, fast train tavel from North to South and a network of autotoutes, France is open season for property buyers.

If you have a budget at the lower end, then there are plenty of renovation projects in the North and rural areas of France. Bargains from 20,000 euros can still be picked up but do expect to invest on the renovation work!

Plots of land abound throughout France, so with building costs at about 80,000 euros for a 3 bed property you can pick your location! Land prices are more expensive in the South.

At the other of the scale there are luxury villas in Provence (where you can still negotiate a good discount but act early before the market takes off), and chateaux. If you fancy a bit of luxury, then consider a chateau. Chateau from 200,000 euros can be discovered – chateaux are found all around France.

In general terms, property prices increase from North to South. So expect to pay more in Provence especially on the coast – but even rural Provence can throw up bargain prices. The Languedoc-Roussillon still offers the Med Coast at attractive prices. Further inland you can enjoy the south’s climate in the Midi-Pyrenees. Spectacular scenery at modest prices!

More help and tips: French Property Guide and the latest French Property for all budgets.

Buying a property in France should be a pleasure, an absolute joy, but too often people come here short on information. When you’re talking about the sort of serious money a house costs, of whatever size, it’s up to you to take due care. If you end up choosing a French house that’s got problems you’re the one who has to live with it.

So how can you take the pitfalls out of buying a French property?

Well first off, learn to speak French. I don’t mean be fluent in the language, we certainly weren’t, but learning a few words and phrases will do a couple of things. It will increase your confidence when dealing with people – and the French will recognize it. They’ll also treat you better because you’ve taken the trouble to make the attempt, however haltingly. The French are big on being polite and speaking their language is the ultimate example of this.

They’ll also be wary about what they say. Now don’t get me wrong, the French aren’t all out to pull the wool over your eyes when you’re out searching for your French property, but if they know you can’t speak the language some of them, a minority, might say things they wouldn’t otherwise. Speaking a bit of the language puts you on their level.

No, it’s not easy, but it is worth it.

Now no amount of expertise in French is going to have you understanding the processes and paperwork for buying a property in France. It will certainly help, but you need to do some research as well. The French do love their paperwork.

Fortunately the internet is a great help. There are dozens of sites offering advice on French property buying, French mortgages, Notaires (kind of a solicitor but not), in fact every facet of finding and buying your place in France.

Make sure you check multiple sources though. It is clearly in some people’s interests to promote certain things or give particular information. It’s not necessarily deceptive but a lot of them are doing this for a living, after all.

Then eventually you’re going to find yourself here in France. You may or may not have the help of an interpreter, consultant or an English-speaking agent. It’s another area you need to research. Interpreters and consultants can be a big help but they can also be expensive. What services are they offering? Would a French estate agent be doing a lot of these things anyway? These are the sort of questions you need to ask.

And when you’re buying a property in France what checks do you need to make on the building? What about planning regulations? Rights of access? For instance, if it’s a rural property does a local farmer have any rights? Does the local maire have a right to buy? It’s the sort of thing that exists in France that you may not be aware of.

None of this information is hidden from you. None of it is secret or particularly difficult to find out but the French property buying system is different so you need to make sure you know what’s going on. A French agent may quite understandably assume that you know what you’re doing. Their French clients would, why not you?

However, they are also very helpful. If you don’t know, ask. If you’re not sure, ask again. Re-phrase it perhaps. French property agents get well paid, make them work for it!

In general, to turn pitfalls into pleasures when buying a property in France, all you have to do is ask questions and make sure you understand the answers. It’s easy to get drawn into the atmosphere and the excitement and forget common sense. Don’t. This is far to big a decision to be made without all your wits about you.

Jeff Seems is an Englishman living in France. He is author of The French Property Buyer’s Guide which is vital reading for anyone thinking of buying a property in France.

For info and six free lessons to learn French, try Rocket French.

Buying a property or second home in France is gaining popularity, but it can be a challenge and there are many potential pitfalls to consider. The principal pitfall being one of LANGUAGE and UNDERSTANDING. It makes sense to have the assistance of a bi-lingual selling agent who is a reputable specialist from the outset, someone who is familiar with the quirks of Napoleonic law in order to reduce your risk during all stages of the buying process.

So where do you start?

After choosing a property in France you wish to make an offer on, the real estate agent will normally ask you to sign a “Promesse de Vente” or “Compromis de Vente”. In French law, the “Promesse de Vente” is an undertaking by the vendor to sell to the purchaser and the “Compromis de Vente” is a contract between buyer and seller (I.E. an agreement to sell on behalf of the seller and an agreement to buy on behalf of the buyer). In both cases there is a 10% deposit required and a date for completion of the sale is set (which is normally 60 days). Following the signing of the “Promesse de Vente” and the “Compromis de Vente”, there is a 7 day cooling off period for the purchaser, during which time the purchaser may withdraw from the agreement and recover any deposit paid, without the need to justify cause. After this time, the vendor is bound by contract to sell to the buyer and the purchaser cannot withdraw except under specified conditions.

When buying property in France its worth noting that “Promesse de Vente” and “Compromis de Vente” do not include property surveys, so these should be undertaken before making an offer.

For this reason, when buying property in France, the buyer is fully protected from Gazzumping, a problem which can be infuriating for home buyers in England.

The conditional clauses contained in both agreements usually act in favour of the purchaser, whereby they can withdraw from the purchase if planning permissions or other factors are considered obstacles. In addition if the buyer has a loan refused they can also withdraw from the purchase with a full refund of deposit.

In France conveyancing is done by Notaires who oversee the signing of the agreements and also hold the deposit funds. For this reason, it makes sense to appoint your own personal Notaire as there is no additional cost involved as notarial fees are laid down by the Government.

During the 60 days prior to completion your Notaire will carry out all the necessary searches and obtain a certificate from the Bureau des Hypotheques (the French equivalent of the land registry) which identify whether there are any outstanding liabilities or debt against the property. For example if the sale proceeds are not sufficient to clear the mortgage, the sale will be stopped and the purchaser’s deposit refunded.

In France, Estate agent fees are normally included in the asking price of a property and are therefore paid by the vendor. These are typically 5% for houses or apartments.
The purchaser pays legal costs and Notaire fees plus stamp duty and registration fees. The fees are laid down by Government legislation. Typically legal costs can be around 6% of the purchase price and taking a mortgage with a French bank will require registering with the Bureau des Hypotheques and will cost around 1% of the mortgage value.

Bruce International are an established and reputable property company offering properties for sale in southern France and a personalised, professional service. Whatever your French riviera property requirements, we will help you find the perfect home. Our multilingual staff have in-depth experience of buying and selling properties in France, together with all the legal processes involved, for total peace of mind.

Places which can be easily accessed with car hire are Lyon, which is the one of the biggest cities in France, the Lake resort of Annecy and Chamonix which has excellent skiing opportunities. Because Lyon is very much a working city the price of property is inexpensive no matter what time of year you choose to go. According to PricewaterhouseCoopers and the Urban Land Institute, Lyon has just been voted the fifth best city in the world in which to invest. If you are looking for a luxury property in Lyon then the 6th Arrondissement is one of the more upmarket areas.

Compared with other alpine resorts Lake Annecy is not so expensive property-wise. If you are renting then prices will be higher during the ski season. Your purchase and rental choices include everything from villas, apartments, chalets and old stone houses. For 403,000 Euros you can buy a pretty semi-detached cottage which has amazing views out over the lake through property agent Leapfrog. In Chamonix there are wonderful chalets for sale which have six bedrooms and overlook the Massif du Mont Blanc. Through the Prestige Property Group these go for around two and a half million Euros.

South Western France consists of Aquitaine and the Midi Pyrenees. Living there gives you the choice between exploring the Atlantic Ocean coastline or the impressive mountains which border Spain. Bordeaux is the capital of Aquitaine and this world famous wine-producing region has some spectacular property. Grand chateaus are available to buy here, though they don’t come cheap starting at eight million Euros. For this price you can get 25 hectares, 19 rooms, stables garages and much more. Lux Residence has these opulent properties on offer.

If you are looking to buy a ‘gite’ or a country house then the department of Gironde is becoming very popular. There are also more modestly priced semi detached houses for sale in Aquitaine for around half a million Euros. This is a great price for three buildings as you get a main house, converted barn and farmhouse. There is also a pool and all this is located only two kilometres away from the medieval town of Monflaquin. If you are planning on spending less there is a detached house in Pau, in the Pyrenees Atlantiques, which goes for 330,000 Euros. The location is ideal being only 20 minutes from Pau airport and hour away from Biarritz airport. Going skiing from here is easy while there are plenty of golf courses and the beach is accessible too.

When considering your options for property in the south of France don’t forget the Mediterranean island of Corsica. Corsica has amazing scenery and some of the world’s best walking including the GR20 (Grand Randonnee). There are numerous villas and apartments available to buy or rent in Corsica. Owners Direct has holiday villas in Porto Vecchio for 1190 Euros per month which are done in a tasteful modern style with unforgettable views.

Property journalist Pascal Gerard wrote this article for http://www.french-carhire.com He lives near the Bordeaux docklands having stayed in the area after graduating from Bordeaux University. He was commissioned to write this piece after advising French Car Hire on the best spots for in France for car hire.

Selling a French Property For whatever reason you have decided to sell your home in France. Perhaps you are moving to another house or even a different country. Selling a house is always a big decision and can be very stressful. However, the decision has been made but how are you going to sell your property in France?

Immobilier and Notaires

The traditional routes are through Immobilier (estate agents/Realtors), Notaires or Privately. In France Immobilier do charge about 5% commission for their services. Their fees are added to the price – so the published price will include the Immobilier fees. Note the legal or Notaire fees are not typically included (this is not always the case). The Immobilier will market your property – using newspapers, magazines, websites and email lists – arrange viewings, negotiate and offer support!

Do It Yourself

However, a growing number of individuals are marketing their property privately – advertising in various media. At 1st for French Property we have seen a big explosion in the number of people using this route. The French (or expat foreigners including the English) see the English speaking audience as a hot market. Of course, marketing privately you can offer the property at a more attractive price (saving the estate agent’s commission)!

Increasingly private individuals are choosing to advertise their property on French Property websites – typically you will be able to describe your property fully with photos and contact information. You must be prepared to answer all enquiries, arrange viewings and conduct negotiations. The legal transaction will still have to go through Notaire – but that it is usually at the expense of the buyer.

You will find some inquiries are bizarre, the odd scam from Nigeria, and you may be more enthusiastic about your property than perhaps an Immobilier and “sell” the property better to potential buyers.

Tips

• Describe your property in as much detail as possible – including all rooms with room dimensions
• Describe the garden, land, & outbuildings in detail
• Photos: your photos need to be clear and bright (be careful with interior photos – they often appear dark). Good photos will sell your property for you.
• Describe the location – what attracted you to the area, local restaurant and bars, sights to see, etc.
• growing number of people are emigrating to France – they will want to know about locations of schools, shops and health services
• How to get your property – nearby airports, rail stations, bus services

Spend some time thinking about how to sell your property in words and photos. It can be fun so sell your property in France today!

Howard Farmer
1st for French Property
Selling French Property
#1 French Site for selling your French Property – over 500 private French Sales available. From plots, renovations to luxury villas in Provence