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| France Buying Guide Newsletter |
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February
is well underway, the days are stretching and we are almost allowing
ourselves to think of Spring! I know that many readers will be considering
purchasing in France soon – the Spring is a busy time for property
sales. With this in mind, I According to a number
of property experts, the relative Investors who have tried out emerging markets in different parts of the world will gradually start to return to France to take advantage of the security of the French market and legal system, not to mention the lure of easy transport and the strength of the Euro. Meanwhile, a growing trend for Britons to buy new rather than old property will continue and the developing buy-to-let market in France is likely to increase. There is also a suggestion that security fears and concern over the environment may be encouraging some purchasers to buy in places they can reach easily by car to avoid flying. Go Green! Regardless of the forecast in my mind, France is always an excellent place to buy a property – either a 2nd home for an long term investment or to emigrate. If you would like
me to help you find a property in France check our “Property Buyer
Resource matching Service” at: http://www.FranceBuyingguide.com/property.htm
Alexis Mail me at:
Alexis@OverseasGuidesCompany.com
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Protecting your Overseas PropertyFor some people, buying a holiday home is an escape from everyday life and a chance to head off to the sun. For others it’s about a good investment that will allow for good rental returns. Either way, when buying a property overseas, it is important that you do something about protecting the property – and part of that means insuring the place. I know this isn’t particularly exciting, but it is vital. So where to start? Well, insurance in Overseas operates in much the same way as it does in the UK – you just need to be aware of the pitfalls and make sure you have adequate cover. Home or Away? One of the first
questions people ask is should they use a UK insurance company or
broker or is it better to insure abroad where you have bought the
property? Simply, there is no right Inevitably one of the biggest issues to consider is the language. It is important to know what your insurance policy covers - if you aren’t fluent in Greek then it might be difficult to understand exactly what cover you are buying. It may be better to use a UK based insurer or broker where you can understand the language, receive documentation in English, pay the premium and receive any claims payments in sterling. Cost is usually an important consideration when buying insurance - many local insurance policies tend to be cheaper than products offered by UK insurers. But a word of caution - however tempting it is to try and save a few pounds on the cost of insurance, you should balance this by looking at exactly what is covered by the policy you are buying. How much should you insure for? You should insure for the rebuilding cost of your property – this is often less than the market value of the property. You will want to allow for the cost of re-building all outbuildings, swimming pools, gates and fences. Don’t be tempted to cut corners and insure for less than the true value of rebuilding. If you have to make a claim your insurer may not settle your claim in full if you haven’t insured for the correct amount. If you are having trouble working out how much you should insure for, a local Greek builder or surveyor may be able to help you.
If you have an apartment contained within a complex or apartment block you may have some buildings insurance cover included within your condominium fees. However, if insurance is included, be sure to check the details. Often cover only extends to communal areas such as entrance halls and swimming pools. Kitchen units and fitted wardrobes within your own apartment are very rarely covered. UK insurers tend to offer wider cover and include useful extras like emergency travel cover, so that if your property suffers damage your costs for travelling to supervise repairs will be covered. Letting Your Property? You should also be aware that some local policies will contain exclusions if you are letting out your property. For example, cover is sometimes only available when you are letting to family or friends and some policies will not cover damage caused by tenants. Cover for loss of rent is particularly important if you are using rental income to contribute towards mortgage repayments or if your property is operated on a commercial basis. Make sure the insurance is sufficient so that, in the event that your property suffers damage and it is not possible to let the property, you will be covered for loss of rental earnings. Alternative accommodation costs are also covered by some policies. This means that if the property is uninhabitable, you or your guests can claim the cost of renting a similar home or a hotel stay. In France it is essential that you have insurance when purchasing your property. At the exchange of contract stage your French agent or notaire will require proof of this. If you don’t have insurance in place the notaire may recommend a policy from a French company. The most common product is Multirisques Habitation – “home insurance for the building and contents”. Calculating the cost of re-building in France can be difficult – properties can be old and there are a large number of farmhouses that have been restored. If you are uncertain as to re-building costs, ask either a local builder or surveyor to provide a valuation. There are a number of legal requirements for insuring property in France. For instance, if your property has a swimming pool there are some important stipulations. To comply with French legislation your pool should be fenced off and accessed via a gate otherwise it could invalidate your entire policy. To ensure that your public liability cover is valid in the event of an accident it is important to follow the safety guidelines listed by AFNOR – the French standards agency, visit www.afnor.fr for more information. If you are interested
in getting an insurance quote I do have a really good person that
works with people buying in France. Email me your phone number and
best time to call and I will have my contact ring you: mailto:Alexis@overseasguidescompany.com |
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Currency
Update
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Recipe for more Golden Years – women live longer in FranceWhether it’s the weather, the beauty of the countryside, the attitude of the people, the diet or a little bit of all this put together, did you know that the women of France have the longest life expectancy of any nation apart from Japan? A baby girl born in France in 2006 can expect to live until she is at least 84, surpassing a baby boy’s potential by 7 years according to new Government statistics. We touch on this a little in our France Guide: the south-west of France in particular comes up trumps and in the Midi-Pyrenees region, which is famous for its foie gras and rustic red wines, female life expectancy is a full year above the national average! Cahors, a town of around 21,000 people on the Lot River for example, has a reputation for affording a relaxing lifestyle, pleasant climate and good food. It attracts elderly residents from other parts of France as well as neighbouring countries. So does the fountain of youth flow with foie gras, red wine and olive oil? Women in the more temperate Mediterranean countries of France, Spain and Italy tend to live longer than those in colder northern countries. The trends are also reflected within France itself. Women from southern areas, where olive oil and duck fat are more prevalent in diets, have longer life spans than those from northern areas. It would appear to be a paradox at first sight: people tucking into hitherto decried fatty foods and drinking full bodied wines have lower risks of cardiovascular disease and live longer. Could it be also that they are happy to live a simple life, enjoy everything in moderation, that they laugh and have fun without worrying needlessly over everyday problems? Whatever the reasons,
if you are considering a move to France at any age, I hope these somewhat
heart-warming facts will encourage you to go for it! |
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Helpful Resource (by Carol Dunning)(Carol works with me at The Overseas Guides Company and I wanted to share this review that she wrote...)"Recently, my daughter had a suitcase stolen. It contained all her family’s passports, driver’s licences, bank account and credit account details…a nightmare scenario. The perpetrators of this crime have embarked upon a spending spree of enormous proportions, buying mobile phones, clothes – you name it. They have opened up bank accounts in my daughter's name, written out cheques that they can’t meet … And it is days later - sometimes weeks - that she first hears of this. Well…she has found help – and I want to share it with you. It struck me that any late payment, fraud or clerical error could easily damage your credit status and lead to lenders refusing you credit – for instance when you apply for that all important mortgage. This could prove both embarrassing and costly. So - she has joined up to CreditExpert. This alerts her to what is happening to her accounts as it happens… I went into the Internet to have a look at their website: from what I read, CreditExpert is the UK's leading online consumer credit monitoring and identity fraud prevention service. If you're thinking about getting a mortgage (for the UK or Overseas) any time soon you can check your credit report and make sure all information is correct before any credit searches are carried out. And what is really great is that you can take a 30 day free trial and receive the following:
It sounds great: I went in and followed the process
– it is both easy and uncomplicated. My daughter highly recommends
this very useful service – have a look by going to CreditExperts
website." |
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French Bank Accounts...and a Top TipIt is certainly preferable to have a French bank account, especially for those looking to move abroad and work, for the all important salary cheque! You also need a French account if you have a French mortgage so that the repayments can be made to your provider. It also makes sense to have a domiciled account from which you can pay bills. EDF/GDF (electricity and gas) bills are normally sent out every three months on an estimated basis and can be paid by giving the utility providers your French bank sort code and account number and then signing the 'TIP' (authorisation slip) attached to the bill, thus allowing the money to be taken directly from your account. France Telecom normally insists on performing a 'prélèvement' (direct debit automatic withdrawal). There are also those little bills that might need to be paid if you're having work done on the house - painters, decorators, gardeners, property managers, etc. Although the use of cheques is diminishing in France, they still represent a highly popular form of payment, unlike in the UK. Also, unlike in the UK, there is no cheque guarantee card and proof of identity is often required when paying by cheque. You must also ensure that sufficient funds are available against any cheque you write or have a pre-arranged agreement for an overdraft (“decouvert” in French). A bounced cheque is taken very seriously indeed in France and can lead to your name being recorded on the blacklist of the Banque de France. This in turn can prevent you from having a credit or debit card and chequebook and can make opening another account elsewhere more difficult. (Yikes!) It is fairly straightforward to open an account in France. Having a bank manager or advisor that speaks English can be of enormous help to clarify anything and many banks in France are making efforts in this regard. Some firms offer their international clients an English-speaking relationship manager, or an English-speaking freephone contact centre. To open an account you will need a recent credit card statement of not more than three months old, (Visa, MasterCard, American Express, etc) showing your address, or a bank statement from a reputable bank showing your address, and a recent gas, electricity or telephone bill at your home address of not more than three months old. In addition, if you are opening an account from overseas and are not present in the country in person, you will need to provide copies of two identity documents, passport and photo driver's licence for example, and two proofs of address. If you need help finding a bank or want to set up an account in the UK at a French bank, send me an e-mail. I can point you in the right direction. Mailto:Alexis@overseasguidescompany.com
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| Until
next time, happy house hunting!
If I can be of any assistance at all, please just email me at Alexis@OverseasGuidesCompany.com Alexis |