Hello!

Spring is upon us at last and I am quite sure you, like me, are breathing a huge sigh of relief. January and February are not easy months are they? We tolerate them and dream of sunny times to come…But now we can safely say that the days are stretching out, the temperature is (hopefully) increasing and this is the time of year when our thoughts turn not only to holidays to come but to putting our France property purchase plans into action.

If you, like me, spent months “humming and ha-ing” about whether to go ahead and do it or not, take it from me, with good preparation (and a few hints from us!) you will be thrilled you have done it. Picture yourself sitting on your patio this summer with your glass of rose in hand, and hopefully your nest egg still neatly tucked away - the larger for having used Smart Currency Exchange for your currency transfers. I’ll talk more about this later...

Your nest egg will benefit hugely from being well cared for! In this issue you will read about the benefits of talking to an independent financial advisor. Not only will you be able to make your money work harder for you, you will find yourself with increased peace of mind before you hop over the Channel to your new home – and that glass of rose will seem all the more welcoming.

With renewed Spring vigour in tow, I am going to show you in this newsletter why now, despite the pound having seen better days against its European rival, is a great time to buy and will save you money, leaving your hard earned nest egg almost intact!

President Sarkozy’s revamp of the inheritance laws is good news for us Brits: read my overview of this too.

I also feature a fabulous property in the heart of the Dordogne at a snip of a price which will have you itching to get over there now to see for yourself what you can get for your money in France.

So settle down with your cup of coffee (or glass of rose….) and enjoy my Spring newsletter. Oh, and do remember I am here to help you with your France plans. Just tell me as much as you can about what you are looking for and I will do my best to get you going. Click on my property form and send it over! http://www.francebuyingguide.com/property.htm

Happy Reading!

Alexis
France Buying Guide
The Overseas Guides Company ltd
0207 898 0549 (call me!)

Seize the moment!

Buying now could save you money, read on to find out how and why!

I keep a close eye on what is happening with the France property market and you may well have read my article in last month’s newsletter about property trends for 2008. Following on from this, as I see it there are several positive pointers towards buying in France now and here are my reasons – just to whet your appetite. Of course, if you need help to put your plans into action, you know where to come.

Please email me: mailto:Alexis@overseasguidescompany.com or fill out my resources form for more information and help on any particular aspect: http://www.francebuyingguide.com/resources.htm

So why is now a good time to buy?

• The French housing market is now quite stable and you will find some properties have even been reduced in recent weeks. We saw a definite slowdown in the latter part of last year and it really is a buyers’ market now in France.
  
  
• Easter has always been the most popular time for those thinking about putting their houses on the market but following on from above, going across on a viewing trip now may well have advantages from the point of view of timing. The “rush” has not yet started and you will be able to make up your mind at a more leisurely pace - the early bird catches the worm! – and finding your property agent may not be quite as busy as in the months to come. By the way, please do ask me for my recommended agents before you go across.
  
  
• Everyone knows we live in uncertain times, with many financial markets in rather precarious situations. The Euro is looking strong and will probably hold its own this year so, rather than putting all your eggs in one basket ,(here I go with my eggs again, must be the influence of Easter….!) you may be wise to think about investing in France. As I said, the market is stable and the purchasing process is extremely safe.
  
  
• Buying now will mean you have something set up for your retirement and I guarantee that family and friends will be forever grateful to you too! You may be able to rent it out occasionally which will provide you with an extra income too.
  
  
• Making your viewing trip – or trips - now will be cheaper than later on in the summer from the point of view both of travel and accommodation.
  
  
• You will see your favourite area just before the leaves and sun come out so you will be assured that if you like it then, you will love it in full summer – always a good test I feel to view in all seasons.
  
  
• There are currently some very good deals for mortgages in France and the interest rate is of course lower than in the UK. This is something you can think about even before you go across and, in tandem with this of course, Smart Currency Exchange will be able to advise you on setting up your purchase at a fixed rate – again something you can do way in advance of your property purchase. You can get straight through to one of the Smart chaps by calling them on their freephone: 0808 163 0102 by the way.
  

So there you have it: there are many reasons why there is no time like the present and there are still plenty of uncovered corners in France to discover real bargains. Yes, prices have steadily risen and some parts have seen an influx of British inhabitants but, by looking around now, you will beat the French buyers, who tend to come to the market well after Easter, and you may well be moving in to enjoy the summer!

You will find a wealth of information on everything in my France Buying Guide which includes an overview of every single region to help you decide: http://www.francebuyingguide.com/guide.htm

"The best of times, the worst of times..." Currency Update

by Smart Currency’s Charles Purdy.

"The best of times, the worst of times..."As I write it certainly feels like the latter for sterling. Having hit €1.50/£1 during the early part of 2007 we now sit close to €1.28/£1 inter bank. If you have to buy Euros it will cost you 15% more than it did 12 months ago.

But what if you have to SELL Euros?

This could be the perfect time as it is difficult to see how much further sterling could fall against the Euro. It could still fall but economic pain is beginning to grow in Euro land as a result of the Euro's strength against sterling and the US$. Euro land exports are becoming less competitive and euro land properties too expensive. So if you have sold (or are close to selling) your property this could be the time to look at windfall gains by selling some of those Euros now. If you have exchanged contracts and are confident of receiving your Euros you could even lock in the “gain” using a forward contract.

Also, I think it is important for people who are looking to buy properties in Euro land to negotiate hard. Lifestyle purchases are obviously long term and what goes around comes around in the currency market. But it should not be forgotten that a lot of overseas property sellers need the cash from the property sale. Talking to a French agent the other day he emphasised this need: if British buyers are finding it more expensive because of the strength of the € then property prices should/will reduce to reflect this. So don’t be daunted by the sudden loss in value in sterling but use it to your advantage. Any sensible seller will quickly realise that it is better to have the cash rather than hold out for a higher but perhaps unrealistic valuation.

To read the latest on Serling and the Euro go to: http://www.FranceBuyingGuide.com/Currency270308.htm

Feedback from a Smart client

This is the first time we have been involved in currency transfer, or any major transactions abroad. I would like to say that your Company's performance since we first contacted you has been friendly, extremely competent, and very reassuring.

You have responded on every occasion both promptly and efficiently, for which we thank you most sincerely. We will be involved in further money transfer during restoration work on our new property, and you can be assured you will be our first port of call.

Again many thanks, Sincerely Bernard Corcoran

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

Property - a move in and renovate option...

How about this beautiful little house, nestling in the heart of the Dordogne? When I tell you it is actually TWO houses, one ready to move into and the other to renovate and that is also comes with a good sized barn plus garage and garden, then that it comes with over 1,600 sq.m. of land (easily room to put a pool in and maybe house a few chickens….) I am sure you will be most impressed.

Its situation is very desirable too: in a wooded valley close to the lovely towns of Brantome and Nontron with easy access from 4 airports (STOP PRESS regular flights from Stansted to Angouleme are starting on April 1st!)

Ah yes, I hear you say, but how much will this little gem set me back by? Well, here comes the best bit: you will have CHANGE out of £74,000!

There are many more where this came from and I will be happy to make a search for you. All you have to do is to let me have as much detail as you can about what you are looking for, what is important to you in terms of location, style, type of property and I will put your plan into action for you. Please email me with your requirements and let me know when you are thinking of hopping over for a visit.

mailto:Alexis@overseasguidescompany.com

What exactly DO Independent Financial Advisors do – and can they do it for me?

I am often asked this question and I must say that I have never QUITE known the answer, so I set about finding out for you.

Independent Financial Advisers (or IFAs) are professionals who offer unbiased advice to their clients on financial matters and recommend suitable financial products from the whole of the market. They are the only type of financial advisers who are able to select from all the products available in the marketplace, thus making sure you get the right product for your individual needs.

They can be consulted on many matters including investment, retirement planning, insurance and mortgages – or indeed other loans too. IFAs also advise on some tax and legal matters.
Typically an Independent Financial Adviser will conduct a detailed survey of their client’s financial position, preferences and objectives, known as a ‘factfind’. This means that they have to gain a full understanding of your circumstances and requirements before helping to choose any financial products. They need to record your information so you can double-check that they really have understood your situation and your intentions.

IFAs are bound to the Financial Services Authority rules, which oblige them to provide advice most suited to your personal requirements and your risk outlook, termed 'suitable advice'. When financial products are recommended they must take into account the benefits provided, the charges, flexibility, service and financial strength.

In addition, when recommending a product, all financial advisers have to provide written reasons why they think that it is right for you - again to make sure that you are fully informed before committing yourself to anything. They will then advise appropriate action to meet your objectives and, if necessary, recommend a suitable financial product to match your needs.

Have a look at the following questions. If you answer ‘no’ or ‘don’t know’ to one or more of them it may be in your own best interests to talk to an IFA.

Incidentally, I can see the “How much will it cost me “ question forming in your mind, as it did in mine! The good news is that the IFA we recommend will initially charge you nothing (no, you have not read that incorrectly!!) for the benefit of his advice. The point at which they start charging is when you take them up on the advice given and retain their services to do so. Their boast is that, at that stage, they hope to make or save you more than they actually charge you, certainly over the medium term.

Independent financial advisers must also offer their clients the option to pay for advice by fee rather than commission.

Here goes:

Do you currently have an IFA working for you?

Do you have a financial strategy in place?

Have you discussed your financial situation with any professionals?

Do you have any other investment properties in France or elsewhere?

Do you know how you will fund your purchase?

Are you a cash buyer?

Will you be cashing in investments? (Shares/equities/etc)

Are you aware of the rules surrounding inheritance tax in France?

Are you aware of the Pensions implications if moving to / buying in France?

If you'd like to find out how much an IFA can help you, please email me your contact details and I'll have them give you a call
mailto:Alexis@overseasguidescompany.com

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

Legal Corner: Inheritance issues

I am often asked about inheritance in France and I am not going to deny it is a complicated subject. It is very well worthwhile obtaining the best advice on this to safeguard your French nest egg (there I go again… the Easter influence…). Since the election of President Sarkozy there have been some positive changes to the inheritance tax laws but I strongly urge you to take the advice of a bilingual solicitor, well versed in French law, so that your purchase can be completed in the best possible way for your own financial situation.

Here are a few pointers regarding the changes for you anyway:

• The first proposal is that inheritance tax is to be abolished between spouses. At the moment the general position is that a surviving spouse has the right to a tax-free allowance of €76,000, with the remaining amount of any inheritance tax being paid at a sliding scale of rates, running from 5% up to 40% depending on the size of the legacy. There is also a further €50,000 allowance normally available to be divided between the spouse and children of a deceased person, the division being dependent on the relative amount each beneficiary would take. This would then bring the situation in France closer to the position in the UK.
  
  
• It may well follow from this that the relatively common practice of completing a change of matrimonial regime will not be quite so popular now. A change of regime is a practice under which a married couple can ensure that their joint estate would pass to the survivor of them, depending in part on whether they have no children from other relationships, the transfer to the survivor being free of inheritance tax. If the new law is passed, then there may be less call for a change of regime. Indeed the much maligned tontine clause could possibly become more popular – this costs nothing to insert in a purchase deed, unlike the deed of change of regime that would cost several hundred Euros.
  
  
• Another area of some concern up until now has been the question of unmarried couples and how they would be taxed when inheriting anything from their deceased partner. If a couple, whether same sex or heterosexual, has entered into a French Pacte Civil de Solidarité agreement (PACS), then they currently enjoy a tax-free allowance of 57,000€, with the remainder of a legacy from the deceased to the survivor being taxed at 40% or 50%. Under the current regime this is not as attractive for a married couple, yet it is substantially better than would be the case if they had not completed a PACS, as in this case any legacy would be taxed at 60%, with only a very small initial tax-free free sum.
  
  
• In the new draft law though a couple having completed a PACS will be able to enjoy the same exemption to inheritance tax as would be the case for a married couple. This certainly goes some way to putting France in line with the UK, where a couple having completed a Civil Partnership agreement (CPA) will not need to pay inheritance tax on legacies between each other. What still remains to be clarified, though, is whether the French legislator has rectified the anomaly under which the tax benefits afforded to a couple having completed a PACS would not be available for a couple having completed a CPA. If that is not included in the new law, then a British same sex couple under a CPA may be substantially discriminated against in France, while they could be treated just as if they were a married couple under English law.
  
  
• There is an extra tax-free allowance of €50,000 shared between the children and surviving spouse in the current situation. This would be abolished by the new law. However the basic tax allowance to each child will be increased from €50,000 to €150,000. This is the first time for several years that the allowance has increased, except for a small rise a couple of years ago. The increase is substantial, perhaps reflecting the increase in house prices across France over the past few years. These allowances will be available in relation to gifts to children just as for legacies, on a six-yearly basis.
  
  
• There is a further new allowance to be instituted, this being for the benefit of legacies to nephews and nieces and, in the sum of €5,000 each. There is also an allowance for cash gifts, in the sum of €20,000, in favour of any recipient child, grandchild or great-grandchild, or even nephews and nieces in the absence of children.
  

These are just a few of the main points but, as with all estate planning matters, there can be implications in the UK as well as in France depending upon one’s personal circumstances. It is very important to take advice from a bilingual solicitor to establish the best form of ownership structure for your future purchase in France. Again, I can help you find the best professional person to help you, just click on my resources form below.

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

Closing

I was talking to my neighbours in France the other day and they told me the weather has been glorious over the last couple of weeks and that Spring has definitely sprung! I can’t wait to hop over for a few days to my own house soon… this is the time of year when the tables and chairs start reappearing outside the little cafes and bars and the garden beckons anew.

I have often heard it said that many parts of France are much like England used to be some 40 years ago or so and I do think this is true and explains why France is way up there as the most popular country to retire to, it really does have so much to offer in terms of healthy and joyous lifestyle.

I enjoy helping my readers put their France plans into place and I frequently receive the most heart warming feedback. Here is one testimonial from a reader who put it quite succinctly:

“For someone who knew nothing about looking for houses or what pitfalls to beware of in France for I found the Overseas Guides Company a really 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.” (from T. Blight)

Have a look at our website for an idea of the services we can offer you.

http://www.francebuyingguide.com

Also if you have a comment to make, a story to tell or an experience to relate, please take a look at our France Forum – you may well help another reader as well as possibly finding the answer to that question that was bugging you!

http://www.fbg-forum.com

I hope you have enjoyed this newsletter and that you will be able to get across to France soon. I look forward to hearing from you, please feel free to call or email me any time.

A tres bientot!

Alexis
France Buying Guide
France Buying Guide Advisor
The Overseas Guides Company Limited.
Phone 0845 017 8771/ 0207 898 0549 (call me!)
mailto:Alexis@overseasguidescompany.com