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A New Record Set for the Price of Property in France

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.
Your New Property in France – The French Leaseback Scheme

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.
#1 Market For Overseas Property – France

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 Or Renting a Property In France

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.
Sell Your Property in France

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



