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Welcome to 2008! Why not make this year YOUR year for putting your France ideas into actions? January is the best time for turning over a new leaf – or brushing up an old leaf! Do you feel like it is time to give your life a kick start and do what you have always really wanted to do but never quite done? I know the feeling…and I am here to help you achieve your dream in France. So in this, my first newsletter of the year, I am going to point you in the right direction for your much needed kick start! Whether you are relocating to France or buying a long desired holiday home, you are starting out on a great adventure. I am a firm believer in immersing oneself in a different culture: it broadens your horizons, helps you to “grow” as a person and allows you to look at your own culture in a more objective way. As you know, I keep my ear close to the ground for property news and trends in France. No, I don’t possess a crystal ball sadly, but from what I can see the good news is that it is looking very much like a buyer’s market there. Yes, there have been modest rises…however after the upsurge of prices in the first half of the decade, 2007 actually saw a slowdown in some parts of the French market and this looks likely to continue over much of 2008. Added to this, the French government have brought in mortgage interest relief which is open to French residents so this should mean more older style properties will be coming on the market. It’s looking good folks! Anyone looking to buy a home in France may well now be able to seize a great bargain in the coming months. Let’s face it, our own somewhat gloomy property situation here in the UK is bound to have an impact on those buying in France. There are two schools of thought on this: some feel we will be less likely to think of moving to or buying in France as a result and others feel the opposite: that the somewhat subdued feeling here could persuade us to up sticks and “escape” sooner than planned. What is your view? France is close to the UK, offers a huge choice of low cost airlines and high speed rail links for great accessibility, the roads are excellent and positively empty compared to ours, the towns and villages take pride in tip top maintenance and let’s face it, the food and wine aren’t bad either. But above all, it is the thriving community spirit in France which draws us there more and more…. I will be very happy to help you put your ideas into actions. If you are not sure where to start, click here and give me some detail about what you really feel you want on our property form. I can then start to help you on your way to making your French dream come true… http://www.francebuyingguide.com/property.htm Anyway...I hope you enjoy this newsletter. Kind regards, Alexis Goldberg
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2008 in France – checking you can afford it…..Financial planning, tedious though sometimes it may be, should be top of everyone’s list. The ongoing “credit crunch” here in the UK has begun to have a negative effect on disposable income, hence the slowdown in the property market. Although there have been recent rate cuts, there is enormous turbulence still. France has tighter controls on mortgage lending so there is far less risk of similar credit problems there. So how do you set about planning your finances? Well, firstly make yourself a list of questions such as why you are moving to / buying in France, how much the move will realistically cost (including fees), how you will fund your French adventure, how you can get help making the best of your hard earned assets for the future and how you can safeguard your hard earned pennies. To help you successfully get through your list and make your plan, you will be well advised to look at taking independent financial advice: this is a Godsend for anyone contemplating a big move and can give you real peace of mind, plus it will free you up to concentrate on the niceties of property hunting, home making etc. I have done your homework for you! Please click here and I will find you the very best help for your financial planning: http://www.francebuyingguide.com/resources.htm Looking generally at moving to France, and being realistic about it, there are many positives – as well as some negatives. Weigh them all up, look at the whole picture, go and visit as many times as you can and send me all your questions! There is nothing worse than a feeling of being out of control but with prior planning and thought, your move to France can be stress free and – dare I say it – very enjoyable! To get you going, consider these points: • If you are
retiring to France, have protected your savings and have your pension
• Although the cost of living is generally only a tad less, somehow the opportunities to spend money have the effect of a saving, particularly in rural France where the pace of life is slower, the farmers’ markets bigger and the craving to “keep up with the Joneses” less • House prices are lower and outside space is generally far easier to come by than in the UK • Running a gite or B&B is something many people can successfully think of doing in France. If you are realistic about the work involved, this can be a most rewarding experience and will have the added effect of allowing you to make more friendly contacts at the beginning • If you need to work, setting up a business may be tricky – but is certainly possible. Researching your market is vital and looking into the French system very important. Decent funding must be in place and your local Chambre de Commerce will give you advice on this. Networking is key: if people get to know you and to like you, you will be well on your way. Talk to everyone you know, including making friends with your mayor, and use the fact that the expat market is large and growing to make them realise the service you may have to offer is a great one! • Last but not least (in fact this should be no. 1), forward planning is an absolute “must” and financial security is a priority. Before you make the big move, as I said before, do your homework and you will be happily echoing Edith Piaf when she sang “Non, je ne regrette rien”! Need help finding a resource to help you buy in France?
Check out; http://www.francebuyingguide.com/resources.htm
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Currency Updateby Smart Currency’s Charles Purdy.Sterling isn’t as friendless as it has been. Still not the 'belle of the ball ' but at least the occasional glimmer of interest. Sterling’s movement has been more influenced by what was happening elsewhere rather than here in the UK. Still significant problems given the parlous state of the UK economy and the Bank of England has a difficult balancing act between fighting inflation and helping the economy. The market still expects the BOE to reduce interest rates to help the economy but the BOE needs to use UK interest rates to fight inflation. The housing market continues to suffer and the retail performance over Christmas was very mixed. Hopefully sterling seems to have found a base against most currencies but my major fear is that something similar to Northern Rock comes out of the woodwork and knocks the stuffing out of sterling again! Overall I would always err on the side of caution and, at the very least, sort out some of your currency requirements whether buying or selling sterling. The US$, which sits at US$1.940/£1 inter bank, had a bad week. The Fed Chairman said that further cuts in US interest rates may be necessary given that the outlook for the US economy had worsened. The market expects 0.50% reduction at the end of the month. This was backed up by the business activity index for the Philadelphia region falling to its lowest level since the last recession. So a US recession is very much on the cards. Will the UK follow suit? However, even given the bad news, we are seeing the US$ strengthen against sterling as there is a forced repatriation of US$’s to cover trading losses plus investors are looking for ‘safe haven’ locations [e.g. US Treasury bonds]. The first chinks are showing in the €’s armour, which is sitting at €1.343/£1 inter bank. Firstly, the head of the Luxembourg Central Bank made a statement that the policy towards euro interest rates needed to be loosened. This statement was quickly withdrawn but I think most would concur that it showed common sense rather than blind faith. Secondly, the Euro land Finance Ministers have started complaining publicly about the strength of the euro and how it is having a significant negative affect on their respective countries economies. Euro land’s growth forecasts are being pulled back from close to 3% to nearer 1.5%. Doesn’t sound much but is a serious change and may well lead to the European Central Bank changing their view on Euro land interest rates. The Euro land Finance Ministers seemed to have pinned their hopes on the US avoiding recession. Not a great hope and not a great sign of confidence in their own economies to go it alone without the support of the US! We are in for turbulent times. Sterling gained some ground against the higher yielding currencies. Nothing major but, given that the Australian economy had some good news, it may indicate a softening in the attitude and downward pressure on sterling. To get a Better-than-Bank
go to: http://www.SmartCurrencyExchange.com/smartsquotation.htm
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What makes me a resident? How does this affect my tax position?Answer: Taxes are high in France, of that there is no doubt. They are also somewhat complicated and, as with the Inheritance Laws shake up since the election of President Sarkozy, the same is likely to happen regarding taxes. There are certain new tax reforms, free of all means testing (which until now was unheard of in France), which have brought tax relief on mortgages. In general, the reforms are great news for British housebuyers in France. The first thing to understand is that the French authorities do not make a distinction between residence and domicile in the way the British authorities do. It is assumed in Britain that the country where you have your longest lasting ties is your domicile. In France, domicile means residence and is based on the number of days you spend in the country. The new tax treaty between the UK and France means that UK nationals who live in France will be liable for wealth tax on their French assets for a 5 year period only. During this time any assets held in the UK will not be taken into account when calculating the basis for your wealth tax. After this period you need to leave France for 3 years and then, when you return, you will benefit from another 5 year period. Does this all sound horribly complicated? Rest assured, it need not be but you do need sound advice. For a wealth of information on “everything France” I highly recommend obtaining your very own copy of my France Buying Guide. You can get it here: |
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Feedback from a ReaderWe strive constantly to bring you a personal service and individual attention here at OGC. Rather than you taking my word for it, here are a couple of recent testimonials on our France Buying Guide which really speak for themselves: “For someone
who knew nothing about looking for houses or what pitfalls to beware
of in France I found the Overseas guide and their recommended agents
in France a real warm family organisation and pleasure to deal with.
A great mix of people, butcher, baker and candlestick maker who have
come together to offer real advice based on many years of practical
experience having all trodden the same route earlier and understanding
my needs and concerns. Their courtesy and knowledge with a user friendly
website helped me find many properties to meet my requirements and along
with their colleagues from Smart Currency Exchange, helped me through
the cultural adventure of finding a place with the benefit of giving
me reassurance on the financial situation regarding exchange rates on
how to get the best use of my money. Regards T. Blight” “Congratulations on a most informative and useful guide. I am particularly impressed by your advice on finance, buying currency (I had completely overlooked this one),inheritance issues, the regional comments by Alexis, the need for thorough research and evaluation of positives and negatives and the need for assistance by French speaking lawyers etc. Thank you, J. Goldspink”
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In Closing...That’s it from me for this month! I hope this little missive has given you food for thought and action for your France plans this year. I don’t know about you but I have noticed a distinct drawing out of the days in the last wee while which is always a welcome sign in this first month of the year. Before we know it, Spring will be on its way…. I am off to Montjoi for a few days soon and I will be going to see some of my French friends and finding out some more about property trends for 2008 “from the horse’s mouth” whilst I am there. I shall also be market hopping and bringing back that lovely French honey as usual – and no doubt a few cheese samples – not to mention the wine…. Ooh I just can’t wait! I am always on the lookout for stories so if you have any you wish to share with other readers, please take a look at my France Forum and add your own: Till next time, take care, get your France plans going and look forward to hearing from you! Warmest regards Alexis
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