Hello there – how are you?

My name is Carol and Alexis is my colleague and dear friend. As you know, she was recently married and, as we speak, is still on honeymoon in France – lucky lady!

She did, however, text me to tell you that you will have much to anticipate in next month’s newsletter – she and her husband have been staying all over France and she is really looking forward to sharing her findings with you. She has also promised a few photos of the wedding – I know that she was blown away by the response that France Buying Guide readers showed to her happy news and is longing to share the whole event with you.

So…you will just have to make do with me this month…!

Before I go any further with my newsletter, I have to tell you about something that I think you'll find extremely interesting. Kim recently wrote a small guide about UK pensions...It's about what can be done about increasing the income one gets, eliminating or reducing the tax one pays and effectively ensuring that beneficiaries get ALL of the funds upon death rather than just a percentage (plus more...)

Right - I don't want to steal Kim's thunder - to get access to the special guide (at no cost), please send a blank email to the following address and you'll immediately get a return email with the report: kim32-443706@autocontactor.com. Anyone that has moved abroad or is thinking about moving should definitely read this report.

Please note that often emails go to 'junk,' so if you don't receive an email from Kim within 5 minutes of requesting the guide, please check your junk email folder.

That being said...on to the rest of my newsletter. I am going to comment on why it is financially viable to buy in France (quite apart from the fact that you love the country!); I pop in a case study to demonstrate the wisdom of using a currency company and show you a lovely property in rural Parthenay that may be of interest to you. Then - believe it or not - there is some help to perhaps get money back from the tax man! I discuss my favourite booking site, ebookers, offer you a top tip that recommends spending lots of time in France (any excuse!) and remind you about the invaluable France Property Buying Guide before bidding you farewell for another month. Enjoy!

Best regards,

Carol (for Alexis).

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

Why buy in France?

Last newsletter Alexis showed you an investment property in France. I also write the Investment Newsletter for the Overseas Guides Company so I am going to include an article here that I wrote for this month’s edition – and guess what I discuss as a really good investment option? France, of course…but you already knew that! You may just be interested in the following facts however:

Why are investors buying property?

A property is a tangible asset – it does not crash like a bank, disappear like a badly invested pension or evaporate like a job can in these uncertain times. People need a roof over their head and are prepared to pay for the privilege. The main aim is to purchase a property that will gain in capital value in the years ahead and/or provide a rental income - either now or in the future. You don’t have to buy something huge; quite a modest property will one day provide you with an additional income to top up your pension - even people with modest means can become property investors if they choose to.

Why in France?

Generally there is vast disenchantment with stocks and shares and certainly with leaving money in the bank: interest rates today are not exactly great, are they?

Despite the recent dreary economic climate, the French Federation of Estate Agents, or FNAIM, confirmed that interest in property was again rising. In a survey they conducted with 260 estate agents, 61% said they had noticed an increase in prospective buyers in the first quarter of 2009, compared to statistics in the last quarter of 2008. Over 20% of the prospective buyers were investors.

France has always been very popular as a property investment destination…and the reasons aren’t hard to find. The FNAIM confirms that the price of French property did indeed fall during 2008, but not at the same dramatic rate as in the UK for instance. In recent years French property has not experienced the over-inflation of prices that the UK experienced and in turn was not subject to the same dramatic fall. French banks have always applied very strict lending criteria when it comes to mortgages, and this paid dividends when financial troubles arose.

But the overriding reason why many choose to buy in France is the perception of France as a safe, stable country with a more relaxed, family-orientated life style that appeals to all.

In addition to this is the easy accessibility from the UK with cheap flights proliferating and train travel as an option. It is a reasonably short drive away too – all these factors come in to play when people consider where to spend their holidays – hopefully in your French investment property!

Where in France?

What one has to remember when buying an investment property is that it has to pay for itself.

No matter how cute or pretty it looks, if it is not easily accessible, near the sea or mountains perhaps as a holiday let…it ain’t going to rent out. For long term lets you need to look at where there is a shortage of housing: near Universities for student lets springs to mind here. When it comes to choosing which part of France to buy an investment property there is no great mystery. You need an area where people want to go on holiday in large numbers – or where there are plenty of jobs and a thriving local economy - and where communications and access are good.

There are two main issues when it comes to location. One is the general area of France you are buying in – is it a good one for investment?

The second one is the specific area of the property. Is it near the facilities that future tenants/buyers will want or need? What are communications like – both for overseas people and local residents? Consider high-speed trains – the TGV – airport and motorways.

Think too about the weather, schools, and hospitals, planned developments in the area, rubbish dumps, nuclear power stations and the availability of high-speed internet. The mairie is a good place to start to find out about local plans in your area.

Those, in a nutshell, are the key elements to look out for. Unless you are a gambler, you may find that it is safer to go with tried and tested areas rather than buying in an out of the way part of the country and hoping that property trends catch up with you.

Traditionally, the south of France and in particular the Côte d'Azur has always been known for its lovely coastline and upmarket lifestyle and has been top of most investors’ wish lists, but this area comes at a very high price. That may be, but holiday makers have been coming back year on year in their droves.

Paris, like the Côte d'Azur, retains its property price too as there is limited room to build new developments. The city was hit by the recession but not alarmingly, and prices are already on the rise. Thing is…demand outstrips supply, always a good equation when buying investment property!

Apart from Paris, there are other thriving cities. Marseille has managed to shrug off the crime-ridden image that it had when I saw it first in the 60s, and it’s also easy to get to from Paris by TGV. Bordeaux, the capital of one of France’s finest wine regions, was made a World Heritage site in June 2007and this and the new tram system and general redevelopment of the city is likely make it a good investment spot. To the north east, Strasbourg now has a high-speed TGV connection with Paris and this is likely to have an impact on prices. Other cities that are also now connected, for example Reims in Champagne country, are expected to be affected too.

It is always worth looking at where new TGV lines or stations are being planned. They often push up the value of property considerably. Lines that are being improved in the future include the route from Paris to Brittany and Paris to Bordeaux.

Regional airports that cater for low-cost flights can also do the same to home values. However, a word of warning here. Low cost airlines have been known to disappear overnight and if there is no other reasonable access you have a major problem – always have a plan B.

I have a really good property professional in France who would be delighted to help you – many of our readers have bought through them and have been more than happy with their service. Just give me a call on 0207 898 0549 or fill in the short form at:
http://www.FranceBuyingGuide.com/property.htm
and I will call you.

Remember too that you will save money – and sometimes quite a huge sum – if you transfer your funds abroad through a currency company (such as Smart Currency) rather than your high street bank. Have a look at the case study that follows – this could be you!

How a Guide Reader saved £11,504 by being Smart

Paul and his wife Deborah had decided to buy a condominium in the USA. Their son had married an American girl and they were determined to be part of their lives and to get to know their new daughter-in-law.

Paul needed to send the equivalent of £135,000 to Florida at the end of September. Fortunately he had heeded the advice given on the Smart Currency website and phoned in early - June in fact - to discuss his needs. At that time, it was recommended that he look at reserving money (for purchase in the future) at that day’s exchange rate – Paul takes up the story:

“Who was to know that we were just about to fall over the precipice of the biggest recession in living memory? I was told by the Smart trader that, given how unpopular sterling was, the pound / dollar could go down the further along the year we went - he must have been psychic! His thoughts were that it may be best to arrange a ‘forward contract’ – to buy currency at today’s date for transfer in the future - as soon as possible, thus locking in the rate at the time to use at a given date in September. Suffice to say it’s the best piece of financial planning I have ever done,” says Paul gratefully; “not to mention that Smart made the whole transaction so simple, a couple of short pieces of correspondence and it was all set to go.”

Paul was able to reserve the US$ 264,600 that he needed to send to the USA at a rate of 1.96 GBP/USD on a forward contract from 02/07/08 to 26/09/08. In Sterling, the cost to Paul (when the contract matured in September) was fixed at £135,000 less the deposit paid. (US$ 264,600 ÷ 1.96 = £135,000).

Had Paul waited until September to buy the currency needed, which was his original intention, the rate would have been 1.84. This would have meant a cost of £143,804 (US$264,600 ÷ 1.84 = £143,804), making a loss for Paul of £8,804 over buying a forward contract.

Furthermore, this was not the only saving that Paul made. Had he traded with his high street bank rather than getting exceptionally good rates from Smart, it would have been approximately £2,700 more expensive for the USD purchased (or he would have received $5,292 less).

All in all Paul saved £11,504 by being Smart with his international payment for his overseas property!

Incidentally, with current rates at the time of writing at 1.46, if the requirement had been for now, and booking forward when Paul did, the saving would have been an outrageous £46,232 (US$264,600 ÷1.46 = £ 181,232 - £135,000 = £46,132).

These figures really bring to light the importance of using not only a currency company, but the right currency company – one where you get a really proactive service.

As soon as you know that you’re going to send money overseas, contact Smart Currency Exchange. Just give them a call on 0209 898 0541 – you are under no obligation at all but you may find that their friendly input could help you enormously.

To read the latest market information on Sterling and the Euro go to: http://www.FranceBuyingGuide.com/Currency230709.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.

Village House in Parthenay, a quiet hamlet near St Loup-sur-Thouet

Price: €196,100 (agency fees included).

This is a really lovely home, well priced and set in a lovely rural setting. Situated in a quiet hamlet near St Loup-sur-Thouet, the house looks onto a large and very private garden and grounds. It is only 18kms from the medieval castle town of Parthenay – what a lovely expedition to take visitors to!

Fully detached, the house is south-facing and recently renovated on the upper floor with quality finishes to provide 3 large en-suite bedrooms. In addition there is a newly fitted kitchen downstairs alongside the 3 public rooms, hall and cloakroom.

The dining room has enchanting original pine flooring with exposed beams, a fireplace plus an electric radiator. The lounge has original large oak planked flooring, exposed beams, a fireplace plus again the electric radiator. Then there is a sitting room/office in the slate roofed extension at the end of the house, with original oak flooring, a fireplace (presently blocked off) and a door to the front.

The kitchen has recently fitted wall units and a stainless steel sink and drainer with a 4 ring gas hob, extractor hood, 10 power points, space for dishwasher and area for connecting fridge and deep freeze. There is a scullery/utility room beyond the sitting room with a worktop and sink plus a washing machine and cooker.

All 3 bedrooms are upstairs, with new pine flooring, exposed beams, insulated walls and ceilings, electric radiators, ceiling down lights – and each bedroom has its own en-suite bath or shower room.

There is a barn on the property that could be adapted as additional accommodation.

If you would like to discuss this property with me – or indeed any other, please call me on 0207 898 0549 or go to:
http://www.FranceBuyingGuide.com/property.htm
and fill in the form. I will then phone to have a chat about your requirements.

Can this be true? Money back from the tax man?!!

I picked up an article in the Financial Mail recently that I thought may be of interest to you. It drew attention to the fact that anyone who has paid capital gains tax on the sale of a European property, or has failed to cover their costs when letting out a property, could now receive a rebate on tax paid in the last five years.

Needless to say, the cynic in me saw this as an opportunity for the government to find out exactly who is receiving taxable rental…but hey, this may be a genuine window of opportunity for some investors!

Evidently the tax break is an attempt by the government to bring the rules for European holiday homes into line with those for second homes in the UK. The fact that these benefits were allowed on second homes in the UK and not in the rest of Europe has been seen as a contravention of European law. Of course, the upshot is that this benefit is to be removed next year from second homes in the UK too – however, until then, owners of properties abroad are allowed to claim retrospectively.

SO: you may be liable for a tax rebate:

£ if the income you received in rental did not cover related costs, such as mortgage, repairs, insurance and many other bills related to the property

£ if you have paid capital gains tax on the sale of a European property

Should you fall into either of these categories you are advised to act fairly swiftly as this only applies to the current tax year. Bonne chance! Do call 02078980549 if you’d like to chat about your future plans at all – I‘d love to hear from you.

And remember too that as you move your money across to pay bills, holiday in France, have your pension forwarded to you, you will need to contact Smart Currency and discuss this. They can help you here too. Phone 0870 285 0364/ 0207 898 0541 or go to:
http://www.smartCurrencyExchange.com/smartsquotation.htm

Travelling to France - Save Money!

Travelling on the tube the other day I saw a really great offer from ebookers – have you seen it? I thought that I just had to share it with you, especially as summer is just the time when prices seem to rocket!

They are saying that this summer every holiday is on sale until 31st July – and this even includes August Bank holiday breaks!

You can save on EVERY destination - now there is no excuse not to jump on the plane and take that a last minute holiday you have been promising yourself, or that trip to look at property…! On some options you pay for only half of your stay – and how about spoiling yourself with luxury accommodation at bargain prices?

And there are some great prices: over the August bank holiday you can go to Athens for 3 nights on a scheduled flight for £296; to Dublin £162 – that’s a real bargain! Other holidays included Istanbul for £313, Lisbon for £271…the list is endless. Spoil yourself and have a look at:

Ebookers

Incidentally, if you are just booking flights it does sometimes pay to start your journey on Tuesday, Wednesday or Thursday, something I discovered by playing on this site – it can make quite a difference to the price.

Top Tip - Spend Time in the Area

If you are seriously thinking of buying a house in France, you need to spend a considerable time in the area. The happiest buyers I have spoken to are those who have visited an area for years, know the local people and have a good idea exactly what it is like to stay in all seasons.

A longer trip will also stop you from making hasty decisions about a property purchase simply because you are short of time. You need to find a sympathetic estate agent and see a good number of properties with them. You also need a few days to do things like ask a local builder and /or architect to check the structure of the property and to give you advice and quotes on any work that you may be thinking of doing.

It will also give you the chance to pop into the local mayor's office where you can introduce yourself and obtain information about planning permission so you can see how it might affect your plans for the property. This is especially important if you plan on asking for an extension as you will need to keep the local authorities on your side.

All these checks are essential before making an offer on the property as it will give you a much clearer idea of what you can do with the property and its value to you.

As I write this top tip I am smiling as I know it is something that Alexis herself would really agree with – witness her extended honeymoon!

Buy the Guide

Do you have your copy of the France Property Buying Guide yet? It makes great holiday reading and, if you are thinking of buying property in France it is an absolute MUST!

As you may have gathered, I know the country very well, having bought a wonderful home there myself. The France Property Buying Guide is an utterly honest and straightforward look at the buying process and will allow you peace of mind in knowing that you have covered every aspect of the buying process. This is what Eric and Mary White wrote:

I am sure it is through yours and Kim’s efforts that many people that would have given up the idea of having a holiday home or emigrating to France have only succeeded by following the path through the France Property Buying Guide. Also your following support has made it possible, I am just at the beginning of the long path
but with your help I know we will end up living in our tranquil surroundings in our dream home,

For your continuing support Mary and I thank you both,

Eric and Mary White

There are many steps that need to be thought out in advance, but with the help of the Guide you will succeed! Just go to:
http://www.FranceBuyingGuide.com/guide.htm
and order your copy now. You are also welcome to phone me on 0207 898 0549 for any help and assistance I can offer.

Bye for now...

I wish you a happy and productive month ahead – and you have Alexis’ lovely photos to look forward to next month!

Not only that, but she tells me that she is bursting to share details of her travels around the country with you – places that she has visited that were both familiar to her and others that she has visited for the first time. I am green with envy – I am looking forward to reading it too, not the least for the enthusiasm and true love of the country that shines through her newsletters.

All best wishes,

Carol (for Alexis…!)

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