Hi there!

A very warm welcome to you from our very first France newsletter of 2009. At the outset may I wish you an extremely happy, healthy and peaceful New Year and also thank you for the wonderful feedback we receive from so many of our readers. We all know times are hard, very few of us are unaffected by the present economic problems but if our newsletters give you even a moment’s respite from all this, we will be absolutely delighted!

France remains a much loved and popular country for us Brits, whether it is to move to permanently or in which to buy a second home. It seems to be a love affair which refuses to die! Despite the current economic gloom and doom, it is important to remember that prices in France are still generally much cheaper than in the UK and that with a little forward planning and true focus, it is actually very easy to set up home there. The trick is not to be fazed by interim problems but rather to look on your move as a happy challenge.

In this newsletter I have tried to pinpoint the 10 most common mistakes people tend to make when planning to move to France. You know how I love to make lists! Well, here is one that will stand you in good stead from the outset: you will be able to make a mental note of what to beware of from the beginning and get yourself in the driving seat from day one.

Our regular currency update by our very own Charles Purdy is here to keep you on the ball as well as a very helpful rundown of what you need to know before you sign your Compromis de Vente and, as ever, we have a truly wonderful property to show you which I guarantee will have you booking your passage across the Channel tomorrow!

So read on for all of the above plus more tips on moving to France. Keep positive, hold on to your dream and let’s hope for a real upward turn for us all in the months to come.

And please remember – give me a ring if you want to discuss anything about France. I am here to help - 0207 898 0549.

Kind regards as always,

Alexis
mailto:Alexis@overseasguidescompany.com
France Buying Guide
The Overseas Guides Company Ltd
0207 898 0549 (call me!)

10 common mistakes when moving to France: get it right from day one of your plans!

1. UNDERESTIMATING THE COST OF LIVING IN FRANCE

Naturally, many people arrive in France with money they have made on the sale of their UK property but without enough thought given to future income and expenditure. It is important to bear in mind that the money you have will probably not last as long as you think it will, even though it is still cheaper to live in France. TOP TIP: think about how you will earn future money, have a plan and read our France Buying Guide which is full of useful ideas on how to make money in France! Just go to: http://www.FranceBuyingGuide.com/guide.htm

2. NOT RESEARCHING LOCAL SCHOOLS

It is vital, particularly in rural France, to do your homework regarding schools and colleges for your children. There is often good help for English children in French schools and remember also that the younger they are, the more quickly they will pick up the language and make friends. But do try to visit schools in the area you are thinking of moving to. Again, consult your France Buying Guide for much more information on schools in France and what to do before you get there for your children (link above)!

3. NOT SPEAKING FRENCH

It is vital to integrate and you will feel adapt to your new life and culture far more quickly if you learn at least a little of the language. Again, in rural France very often only French is spoken and not being able to communicate will make life difficult and isolating. Try to study a little at home before moving to France and carry on once you are there. We have some excellent recommendations to help you with this, just take a look at what we offer, tick what you require and simply send the short form back to us and we will be delighted to help. You will find it all here: http://www.FranceBuyingGuide.com/links.htm

4. NOT BUDGETTING FOR HEALTH COVER

Gen up about how you fit into the health system and how much it will cost you. Many people underestimate what the costs are and fail to budget for them but you will feel a lot happier to know you are covered from the outset. Remember that only about 50 to 75% of health costs are refundable so top up insurance is required for the rest.

5. NOT REGISTERING FOR TAX

I am often asked about the tax laws in France and urge you to consider this at the outset, preferably with the help of a bilingual solicitor. If you are going to be domiciled in France you need to register for tax (impost) even if there is nothing to declare. Advice taken at the beginning will stand you in good stead for your new French life. We can help you with all legal aspects, simply fill out our resources form and send it through. http://www.FranceBuyingGuide.com/resources.htm

6. SIGNING HOUSE SALE CONTRACTS WITHOUT UNDERSTANDING WHAT THEY SAY

You would not sign something you did not understand in English I imagine and with something as important as buying a house in France, it is absolutely vital to understand the contents of the papers. In France, the “Compromis de Vente” (equivalent to our exchange of contracts) is binding after 7 days so you must be sure you have all the necessary clauses in this document. The advice and help of a bilingual solicitor is money well spent. Do call us or drop us an email if you would like to take advantage of our recommended legal specialists.

7. HIRING ARTISANS

It is very important to hire artisans who will give you proper receipts and contracts for the work carried out, otherwise you have no guarantees and therefore no comeback if things go wrong in the future. Using an unregistered tradesman is also a problem should you want to resell your property as the potential buyer will want to see guarantees for important work such as the roof, the septic tank etc. These have to have been legally done for the work to be accepted. A reputable artisan will give you a properly written quotation and will guarantee his work for a period of at least 5 years.

8. FORGETTING TO PAY BILLS ON TIME

Bills should be paid by the due date in France - don’t wait for the final red warning letter. Failure to pay may mean penalty payments or worse still, being cut off! Once you have your bank account set up, the best way really is to set up direct debits for your regular bills.

9. NOT CARRYING DRIVING LICENCE & OTHER DOCUMENTS

In France by law you must carry your driving licence and insurance details with you at all times. These can be spot checked by the police and you will find yourself in some trouble if you do not have them or they are out of date. We have lots of information for you in our Bonus Section of our France Buying Guide on driving generally in France. http://www.FranceBuyingGuide.com/guide.htm

10. UNDERSTIMATING THE COSTS AND RED TAPE OF BEING SELF-EMPLOYED

Many Brits come to France planning to be self-employed, whether it is offering services as a gardener, cleaner, running a gite, or offering private English lessons etc. However, many find themselves in financial trouble due to mistakes made when setting up and then running their business. Do take advice at the outset when setting any business up and then, as you go on, it is important to make sure the correct charges are being paid. This will give your business the best chance of success and avoid any undue stress.

Do you have any top tips for moving to France? Are there problems you have come across along the way for which you have managed to find easy solutions? Do you perhaps have a story of your own move to France which you would like to share with your fellow readers? We have an excellent Forum and welcome new input all the time! Just click on: http://www.FBG-Forum.com

Sterling and the Euro in these tough times

by Smart Currency’s Charles Purdy.

I am often asked where I see Sterling going to against the Euro and the likely timescales. And my answer is: “The more I know about the foreign currency market the more I realise I know very little about the foreign currency market!” (This is me paraphrasing a former head of the International Monetary Fund)

Take for example the recent 6% rise of sterling against the Euro (going from €1.03/ £1 up to €1.10/£1 ) in only one week. The claim made in the newspapers was that the market was finally pricing in the significant problems in Euro land. I, however, suspect that the real reason for the 6% change comes down to a large amount of people betting that sterling would weaken enough so that £1 would equal 1 euro. Those that held out for the £1 = 1 euro lost as it never happened…and when everyone heads for an exit at the same time it’s possible to see the aforementioned 6% movement. But no one can be 100% sure what the real reason was.

What does this mean for normal people like you and me? I think it means that you should apply a lot of common sense and set very realistic budgets. Budgets need to be based on attainable exchange rates and it will benefit you to work with currency experts such as ourselves. We will act as a sounding board and use the mechanisms available to secure appropriate exchange rates on your behalf over the required period.

Don’t try and make sense of what is happening in the medium term because no one has any clear idea where any currency is heading relative to another. Keep it simple and allow us to keep an expert eye on the situation on your behalf. We’ve assisted thousands of people to save anywhere from £50 to £20,000 by thinking Smart. Give us a call to find out just how much we can save you.

To read the latest on Serling and the Euro go to: http://www.FranceBuyingGuide.com/Currency220109.htm

Why overseas property buyers lose money...
...and how you can avoid it!

This 10-page educational report outlines:

• Case Study: When Property Buyer, Mr Reed, Purchased an Overseas Property, he Made Three Mistakes that Cost Him £10,256...learn how you can avoid them...
  
  
• How the Banks make HUGE profits from their long-standing unsuspecting customers
  
  
• Ways to safeguard yourself against adverse fluctuations in exchange rates (or in other words, helping you to keep your money in your pocket)
  
  
• The entire process of moving money from the UK to any overseas location, so that you're armed with all the knowledge you need to make intelligent decisions about your money
  
  
• How you can ultimately save £100’s and £1000’s so that you have ample money to buy furniture and white goods…
  
  
• More case studies of people that lost money due to foreign currency strengthening against the pound, so that you learn from other peoples mistakes rather than your own!
  

And just a couple remarks about the report from our readers...

" We have found your free report to be extremely helpful... Wendy Watson"

"I have read and absorbed the information in the stories outlining the mistakes which the uninitiated can make when transferring currency. It is very illuminating and essential that any one,like myself, who is in the process of buying an overseas property should be aware of. I would go so far as to say that every agent selling overseas properties should be compelled to advise their prospective purchasers that it is paramount that they use a currency expert such as yourselves. Regards, Eric Thomas"

To get a copy of the report at no charge go to: http://www.smartcurrencyexchange.com/freereport.htm

To get a Better-than-Bank rate go to: http://www.smartCurrencyExchange.com/smartsquotation.htm
or call Carl on 08081 630 102 freephone.

A truly beautiful old property in the heart of Aquitaine, lovingly restored over recent years.

This is a stunning property in a wonderful location with lovely walks on the doorstep and the beautiful town of Sarlat a short drive away. It combines the best of modern comfort alongside the beauty of many historical features. It has a swimming pool, large family kitchen/dining room, huge living room with stone fireplace and sink and 4 bedrooms. The price? €288,900 is being asked but all genuine offers seriously considered. Imagine what you would get for this price in the UK!

For more details on this lovely house or for help finding exactly what YOU are looking for, please let us know by filling out our short property form:

http://www.FranceBuyingGuide.com/property.htm

The importance of your Compromis de Vente explained

I asked one of our legal specialists to explain in a nutshell what happens once you make an offer on a house in France. Here is what he came up with:

The Compromis de Vente is the first formal and legally binding stage in the property purchase process in France. It is a written contract of sale agreement which legally binds together the seller and purchaser. The format may vary but all Compromis de Ventes should state clearly the key points of agreement including:

• Details of purchaser and seller (you will need to provide "Civil Status" information including your full names, contact details, professions, birth and marriage certificates, passport copies, details of ex-husbands and wives)

• Confirmation of the name and ownership "Title" details of the property and a description of the property including reference and map of the plot as it is recorded in the French Land Registry

• The price agreed (sometimes furnishings and fittings may be negotiated as a separate amount)

• The deposit agreed (usually 10% to be held by the Notaire or in some cases the agent) see also: What methods of payment should be used

• The circumstances under which the deposit may be forfeited

• Some declarations by the vendor about the property

• Some obligations of the purchaser in buying the property

• Results of the lead, asbestos and natural disaster reports and details of the 2 other obligatory reports on termites and energy efficiency. These reports are not required for every property. It will depend on the certain aspects such as the age of the property and which region it is situated in.

• Provisional conditions (Clauses Suspensives) - these will include certain standard conditions which will be inserted by the person drawing up the agreement (e.g. that there are no other claims to the Title or that the searches conducted by the Notaire's office do not reveal any problems). NB: The purchaser can request and negotiate the insertion of additional Provisional conditions before the Compromis is signed e.g. complete building work, obtain a mortgage or planning approval etc

• Full details of the estate agents fees and provision for legal fees, (these generally do not appear on contracts drawn up by a notaire, but they can be provided on request.)

• Various declarations by both purchaser and vendor about their ability to complete the contract

• Statements describing what happens if either side fails to complete his part of the bargain, e.g. penalty clauses

• The target completion date. Note this is not definitive or guaranteed and can be changed by agreement between purchaser and seller or if the notaire has not completed his work for any reason

• Separate inventory of items to be included in the price

• Copy of the land plan as an annexure

Please don’t hesitate to email me directly or fill out our resources form for more help with this, that is what we are here for: to guide you all the way along your French journey!

http://www.FranceBuyingGuide.com/resources.htm

Top Tip

Need a mortgage for your French purchase? You do have a choice! You can use a British or French mortgage, in sterling or euros (or other currency). A mortgage broker experienced in overseas sales can advise you. It’s best to get a mortgage agreed in principle before you start viewing. If you will need a mortgage, this will be a condition of the compromis de vente, meaning that if you fail to obtain one, the contract is void with no penalty to you. Once a mortgage offer is confirmed, the notaire is informed and the sales contract becomes binding.

http://www.francebuyingguide.com/mortgage.htm

Rent or advertise a rental property in France

Do you have a holiday home in France that you want to rent out? OR

Do you want to take a test-drive and stay in a France holiday home (try before you buy)?

I found that holidaylettings.co.uk is an excellent resource.

This site really has to be one of the most easy and clearly laid out sites that I have seen – within a few seconds I was viewing a lovely property in France…plus instructions as to how to get there, where to eat….this could become addictive!

To find a property to rent, you can use various search criteria and restrict your choices to location, dates, price points and various other options. This site is great for people that know what they want or when they want it!

As for renting a property out…Rather than getting tied into a monthly direct debit or finding yourself tied into a commission type payment there is only a small annual fee required. For the fee, you’re allowed a full page of text with up to 20 photos, an availability calendar and an easy system to get the information onto the website.

Before recommending the site to you, I did a bit of background research…

The company has been around since 1999, and have grown continuously since then - by an amazing 100% in each of the last 4 years! Over 17,000 owners advertise over 28,000 properties on the site and they have over 1.5 million visitors to the site every month.

I’ve been informed that HolidayLettings.co.uk also have an excellent reputation for telephone customer service provided by real people in their Oxford, UK office. And looking at their stats, last Thursday, the 8th January, over 75,000 unique visitors came to the site and between them generated over 1 million hits.

As they mention on their website, low-cost airlines and holiday rentals listing sites have made holidays in Europe and beyond much more affordable to the independent traveller. Plus of course those hit by the credit crunch may well be seeking to rent abroad rather than going the expensive hotel route – have a look and see what you think.

If you want to rent out a property in France one of my associates managed to get a deal for Guide Readers… If you enter the following promotional code you can get 15 months of advertising (of your property) for the price of 12 months – Code: 45749. Or, just go to: Holiday Lettings

France Property Buying & Investment Guide

If you haven't already purchased our excellent FULL Guide...why not get a copy today?

The completely educational guide covers the start to finish process of buying a property in France. Every step is outlined starting with the initial idea to buy in France all the way through to areas, how to buy land, investment options and many top tips. This guide is for anyone thinking about or currently in the process of buying property or land in France.

In the course of three years our Guide has been graded a 9 out of 10 and we’ve received huge amounts of positive feedback.

There’s a money-back guarantee if you don’t like the Guide so there’s no risk in buying one – please get yourself a copy to ensure you know what to do and what not to do when buying in France.

More information about the Guide got to: http://www.FranceBuyingGuide.com/guide.htm

Bye for now...

There is, I guess, some comfort in the fact that the current credit crunch is something which affects most of us! Most clouds do have a silver lining however and perhaps a renewed sense of family value and a reappraisal of what really counts in life may happen to us now. And, despite these hard times, if you really do want to own a house in France or move there permanently you will be able to achieve your goal even if it takes a little longer than you originally imagined. And that is where we come in: we offer totally free advice and help for all of your France plans. We simply make a charge for our France Buying Guide which actually consists of 3 documents and costs £19.97 for the digital version and £29.97, postage and packing included for a hard bound copy sent to you first class. Just go to: http://www.FranceBuyingGuide.com/guide.htm

We love to hear from our readers and welcome any of your questions, suggestions, tips or hints. Write to us or call us on the number below and you will always receive a reply. If you are in the area, drop in and have coffee with us.

At least January is almost over now and perhaps there is a chink of light at the end of that winter tunnel! Until next time I wish you well and sincerely hope you have enjoyed this first newsletter of the New Year.

Kind regards till next time,

Alexis
France Buying Guide
The Overseas Guides Company Ltd
0207 898 0549 (call me!)
mailto:Alexis@overseasguidescompany.com