I am sure you, like me, can scarcely believe we are fast approaching the end of 2008. As the days continue to shorten and we brave the rain and wind, not to mention the doom and gloom of every day’s headlines, now may be an excellent time to snuggle up with a glass of your favourite tipple in front of the fire and start planning your property purchase in France. Record numbers of Brits moved permanently overseas last year and there seems to be no sign of that abating. France is ever popular and as you know I keep a close eye on overseas property trends. Did you know that household costs are less than a third of those in the UK still? Your money will go a HUGE amount further in France!

France was recently ranked third in a study of the best countries in the world to retire to, taking into account not only climate, lifestyle and of course France’s much envied healthcare system, but also taxes and costs of living. Contrary to popular belief, taxes are lower for the majority of people retiring to France.

And did you know that on average property prices are still around 50% of those in the UK? As one reader who moved to the Vendee area put it to me recently “I simply love it here, my life has opened up: I almost feel like a teenager again! My one regret is that I didn’t get my act together and move to France years ago!”

So settle down with your cup of coffee or glass of rosé (from the French of course, meaning ‘pinkish!) and enjoy my November 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

In this newsletter I will be letting you know just how retiring to France makes decent financial sense, I have a glorious property to show you, our very own Charles Purdy lets you in on the latest happenings with the pound and the euro and we have some great tips for you to set you on your way.

Happy reading!

Kind regards as always,

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

Retiring to France really does make sense!

Many people dream of retiring to France and it is easy to see why. The pace of life is slower, the sheer size of the country means more space and therefore less stress, and last but not least, household costs are still only about a third of those in the UK. France is way up there as one of the most popular destinations to retire to which will come as no surprise.

So what makes retiring to France such sound financial sense?

Houses in France, particularly in the south-west, still represent excellent value. Whilst France has seen a slowdown in property sales in the last year or so, values are holding up very well. I am often asked about comparative prices in France so here is a rough breakdown of typical costs of living.

Fuel

Petrol and diesel is about on a par now with the UK but don’t forget there is NO road tax.

Food

The strong Euro means that food is about the same price in the supermarkets but remember that one’s eating habits will be different - and much healthier! Most French towns and many villages have a fresh produce market, sometimes as often as twice a week. In the town of Valence d’Agen for example, close to my own property in the Tarn et Garonne, there is a fantastic twice weekly market. The whole town is involved and you can stock up for the whole week with wonderful fresh produce. It never ceases to amaze me how wonderful the vegetables look and taste! France also seems to be less vulnerable to the ravages of food price inflation as people tend to consume seasonal local food rather than imports, and it is on imports that the prices have risen. Eating so well, in turn, will give you a new zest for life.

Utility bills, taxes etc.

I have based the following on monthly expenses for a small house near to Toulouse, where my own property is situated.

Now let us compare costs with a similar house near an average town in the UK

Bill/tax	Cost per month
Council tax	£150
Water	£8
Electricity	£70
TV licence	£12
Waste	£18

A quick tally up:

France: €147
UK: £258 or €322

Now, the above is naturally a very approximate monthly budget, but you can immediately see how your retirement outgoings in France will be far less than those in the UK.

Can you see a wonderful pattern beginning to emerge? Read on!

Insurance

Property insurance in France is not expensive and you will find both home and contents insurance is roughly two thirds of the cost in the UK. Car insurance is also very good value. As for health insurance, once you are at retirement age you can affiliate to the French healthcare system, although you will need “top up” insurance too. However, this is not as expensive as the equivalent in the UK such as BUPA or PPP. For a couple in their mid 60s, the mid-range level of cover, which is more than adequate protection, is only about €120 per month for both of them and this will include dental and eye cover, prescriptions, private hospital rooms etc.

Another pleasant thought is that for many moving to France there will be less to pay in income tax. Whilst the common perception is that France is a high tax country, the vast majority of expats pay less tax. Assuming you plan your move to France properly (see “6. Legal Corner” in this newsletter for great advice in this regard!) it is quite possible to shelter all of your investments from tax, even inheritance tax.

So if you are considering making the move to France, now is probably an excellent time to do so. Think about it this way: the UK housing market is slow but for those who have owned property for many years, they are still sitting on significant profits and now could be a good time to realise them.

Just because the economic outlook is a little on the gloomy side, it does not mean you have to postpone plans to retire to the sun. Who knows what is going to happen in the next couple of years? One thing we can be quite sure of is that France now offers a better and more affordable quality of life.

If you have yet to invest in your copy of our fantastic France Buying Guide, you can do so by clicking on this link:

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

The France Buying Guide is filled with useful information, much of it personally sourced. It consists of 3 documents: the main Guide, a comprehensive “Questions & Answers” section covering everything from banking to owning a car to pets to where to find the best shops and finally a very useful set of “Worksheets” designed to help you plan, tick off and keep in control of your planned move to France. Many of our readers consider it as their “French Bible”.

Is the world about to come to an end?

by Smart Currency’s Charles Purdy.

We live in interesting times. Banks are having to be rescued before they go under - taking the financial system as we know it down with them. Retail sales are plummeting, even as we approach the usually buoyant Christmas period, and it seems as if no one is quite sure if they will have a job next year. The UK government continues to be in denial, blaming our current woes and the weakness of sterling on the Americans. If only this was so. Perhaps if we focused on producing goods and services rather than believing that the City alone can make us all rich we may be in a better position to dig ourselves out of this hole.

So where does all this leave you and your overseas property?
I think it is an excellent time to be looking actively at property abroad and indeed even buying abroad.

Why do I think this?

1. Sterling is unlikely to get better (strengthen) in the medium term and there are greater chances of it actually getting worse (weakening). Therefore to own an asset in another currency would make a lot of sense in diversifying your risk. In other words, if you own something in, say, Europe or America it will have a greater value than it would in sterling terms.

2. Property prices everywhere have fallen from unsustainable levels. Tough negotiation may well bring the price back to a more realistic level. This would offer real value for money, even given sterling’s current exchange rate.

3. Perhaps most importantly, it would allow you to "live your dream" and change your lifestyle. This factor is not to be underestimated, given the problems we are likely to encounter in the UK over the next few years.

Where Smart Currency Exchange is best able to benefit you is when you budget for your overseas purchase. Thousands of our clients use our expertise to minimise the risk and remove the stress of wondering how much sterling they will need when they come to buy. It's better to know what the overall cost is upfront, on the day you decide to buy - say £150,000- rather than having to take a risk and ending up having to pay say £175,000 (another £25,000) on the day you actually pay for your property.

We watch the market 12 hours a day, five days a week and work with our clients to save them thousands of pounds. Give us a call so that we can help you to “live your dream” in the most cost-effective way possible!

Latest on Sterling and the Euro
Sterling edged up through last week away from the record lows of the previous. The shock of reaching such a low level against the euro which many had considered as inconceivable has forced a re-think of how much further down sterling could fall with further interest rate cuts becoming more of a certainty as inflation continues to fall. However, the consequence of such cut may be further devaluation of sterling on the markets and is something the Bank of England would want to avoid but may have to live with short-term.

The euro also maintained its value in the markets and although marginally lower against sterling it remained relatively unchanged against the US$ from the previous week. The extent of the recession within the Eurozone was demonstrated by a survey showing that business activity has slowed to its lowest level in over ten years. This has, much like the BoE, left the onus on the ECB to lower the interest rates in hope of stimulating business growth.

It could not be more important that you use the services of a currency expert at this time. Let’s face it, we all need all the help we can get in these trying times and it is imperative that you look closely at your currency strategy – every little bit helps !

Here is the sort of email continually received for Smart’s service:

"Great service - quick, easy - everyone I spoke to and dealt with was very pleasant and helpful. Thanks.....Dave"

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

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.

Stunning, huge stone house in the Minervois up for grabs!

This is a simply gorgeous stone built house in the Minervois area, situated in an ancient village with a stone fountain and trees. It is within walking distance of the main shops and you just have to turn the corner to find yourself in the beautiful village with its narrow streets and charming atmosphere.

On the right of the main hall is the 50 sq.m. lounge with huge fireplace and wooden beams. There are 4 large bedrooms upstairs and an 80 sq.m. attic on the second floor giving the possibility of more bedrooms. You could even make a “chambre d’hotes” or Guest House as there are 2 entrances and 2 separate staircases.

Outside is a 40 sq.m. shaded courtyard.

The price? €339,200 – or in our language, under £270,000! This is a wonderful bargain, you just could not ask for a better location or style.

We can source many properties such as this one and we would love to do your homework for you. If you would like some help finding your own little piece of French heaven, just fill out our property form telling us as much as you can about what you are looking for and we will do the rest.

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

The buying process in France made simple

The French property-buying process is more straightforward than that in the UK, but it can still be nerve-wracking because of its unfamiliarity, especially if you don't speak French.

French properties are sold in a variety of ways: privately, via notaries (notary public) or via estate agents (immobiliers). The majority of British buying in France buy via estate agents, as this is a more familiar process and you are more likely to encounter someone who speaks English, but you should be aware that estate agents handle only about 50 per cent of all property transactions in France. If you want real bargains, you’ll need to go through a notaire, auction or private sale but if you do it’s a good idea to take independent legal advice.

Prices
The prices displayed in a French estate agent's window should include the agent's fee of around 4-10 per cent of the property price (the price should be followed by the letters FAI if this is the case). However, it may not include the notaire's fee. If in doubt, ASK!

The prices displayed in the notaire’s window will not include the notaire’s fee in general, so you need to add on an extra 2.5 – 8% (see below).When you are considering a property, always ask if the price quoted includes all fees and taxes and if it does not, ask for an estimate of how much extra you might expect to pay. When you are quoted a fee separately rather than as part of the total cost, don't forget to add on 19.6 per cent for VAT.

Estate Agents
When you choose an estate agent, make sure they are a member of a registered body such as FNAIM (www.fnaim.fr), SNPI (www.snpi.com) or UNPI (www.unpi.org). This information should be visible somewhere in the office. Do not use an estate agent without visiting their office and viewing the setup - don't just arrange to meet in a car park somewhere.

Estate agents are allowed to charge what they like in terms of fees, but it is likely to be between 4 and 10 per cent of the 'net' property price (the cheaper the property, the higher the percentage). ASK what the fee will be and whether the property price includes both estate agent's and notaire's fees. It is usual among estate agents familiar with British buyers that the price you are quoted for the property includes ALL fees and you will not be hit with anything extra, but you MUST make sure of this before you sign anything.

The Notaire
About 15 per cent of property sales in France are handled directly by notaries but even if you are buying through an estate agent or privately, the actual conveyancing will still be handled by a notaire as they are the only persons permitted by law to perform conveyancing in France.

The notaire charges a fee, usually between 2.5 and 8 per cent of the 'net' property price (again, the cheaper the property, the higher the percentage). You must add this fee on top of the property price if you are buying directly through the notaire, but it may be included in the price if you buy via an estate agent. However, CHECK that the fee is included.

The notaire is required by law to act impartially, and acts for both buyer and seller, but if you feel unsure about this, you are entitled to appoint your own notaire. This will not cost you any more as the two notaires will split the fee between them. Alternatively, you can take independent legal advice - although a lawyer cannot actually handle the property transaction for you, he or she can certainly act as an advisor. If you appoint a lawyer, you will have to pay their legal fees but you will find this is money well spent. Buying a house, wherever it is, is one of the most important things you will do and a little money spent now making sure all the “is” are dotted and “ts” are crossed will pay huge dividends later.

Buying your house

• Once you have decided on a property you like, contact the agent.
• Double check the fees and pricing.
• If you need professional translation, remember to add the fees on top.
• Draw up your clauses suspensives (see below) – criteria under which you might be able to withdraw from the sale.
• Make an offer, following your estate agent’s advice – they should be able to tell you how low you can go without causing offence.
• Make sure you see the plans of the property and its land (ask to see the “cadastral” plans) before you agree to make an offer. You should be sure of the boundaries, rights of way across your land etc. A competent agent should be able to handle this for you.
• The agent will now contact the vendor and submit your offer.
• You will need to provide your passport, marriage or divorce papers and, if you are borrowing money, you will also need paperwork with details of the loan.

How long does it take?
The whole process should take 3 or 4 months from making the offer to signing the final contract.

The compromis (first contract)
The compromis is usually the first document you will sign, although you may also come across the “promesse d’achat” if you are making an offer below the house price. The promesse shows the vendor your commitment to buying at the offered price.

The compromis sets out the main terms of the agreement between the buyer and the seller and must be signed by both parties.

You may need to obtain reports on termites (depending on the area) and lead and asbestos (depending on when the property was built). If the reports are mandatory the seller usually pays; if they are by choice the buyer usually pays.

Once you have both signed the compromise, you (the buyer) have a 7 day cooling off period. During this time you can withdraw from the sale without incurring a penalty but the seller cannot.

Once the cooling off period is over the contract becomes binding on both parties. Therefore it is CRUCIAL that you seriously consider the compromis before you sign!!

Now you pay your deposit: usually about 10% of the net purchase price. From this point on if you withdraw from the sale you could lose your deposit unless it is for one of the reasons listed in your clauses suspensives.

We are here to help in any way we can so if you have any questions on the legal process or need advice on obtaining tip top legal advice for buying in France, just email or call me or Claire on 020 7898 0549 and we will be very happy to chat to you and set you on your way.

Fireworks... going up in smoke

It’s that time of year – wood smoke, pyrotechnics and reams of autumn leaves…

But just as every recreational explosive carries a health warning, there’s no point making sparks in life without taking sensible steps to protect yourself against the unforeseen.

If we’re to plan effectively, we must think about the worst case scenario. The principle of insuring yourself against anything untoward is universally accepted, yet there is no other area in which people need more encouragement to take the necessary steps to address the shortfall. People don’t like thinking about misfortune, and very easily slip into an “I’ll-sort-it-out-tomorrow” mentality.

Which is why we all need an expert to set up a package of policies, giving the appropriate cover for the cost of private medical care, incapacity, serious illness and death.

There are three main reasons for sorting this out as soon as possible, rather than waiting till you’re buying property, starting a family or generally settling down:

1. Cost – the cost of insurance premiums vary with age, going up steeply in one’s late 20s and through your 30s. If you fix your premiums before you reach this bottleneck, you’re onto a guaranteed winner.

2. Cover – if a banger goes off in your hand, you need cover today to provide financial independence while you recover from your injury (or sufficient security if you don’t!).

3. Insurability – as time goes by all sorts of things can change which will affect your ability to take out cover, almost always for the worse. Not just your age, but your health, your weight, the health of your parents and siblings, how hazardous your pastimes are, and any number of other criteria which conspire to reduce the chance of being able to take out cover.

Insurances are like safety goggles, they’re not going to be very entertaining, and they cost money that you’ll never see again, but once you have them in place you can light the blue touch paper and stand back…

We have a brilliant insurance expert that would be very happy to discuss you particular circumstances with you. Please just call us on 0207 898 0549 or take a look at our website for them and get a quote:

Insurance Quote

France Property Buying & Investment Guide

I have had a wonderful idea, triggered by a chat I had with one of our readers. We all know that times are hard at the moment. Many readers are longing to move abroad yet have found that they are not able to sell their home in the UK and are having to put plans on hold. This is a great opportunity for readers to buy the guide in advance so they will be set and ready to roll when the good times come – and they always do! Furthermore, guides make a fabulous Christmas present… they make a wonderful addition to any coffee table… guides are great! So if a friend or relation is also thinking of moving…well, I have just solved your “what should I buy them for Christmas” problem, haven’t I?

Go to:

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

and we will send it off to you immediately – or to your chosen recipient.

Top Tip

Get the paperwork done properly at the outset! A little time and money invested at the beginning will save you so much in the long run and afford you peace of mind to concentrate on the niceties of home-making. We strongly advise you employ the services of a bilingual solicitor not only for translation purposes but to make sure you have all the t’s crossed and i’s dotted and all the legalities taken care of.

We can help you with this - we have excellent contacts for all your French legal considerations. Just fill out our short resources form here:

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

Travelling overseas? Look no further...

eBookers
eBookers is an excellent site. You can book flights, hotel, car rental and anything else to do with travel. The site is easy to use and I find the prices very competitive. But there is another reason I use ebookers. As they mention on their website, some people are a little nervous about booking a holiday at the moment, what with recent events in the travel industry. Reassuringly they deal with this question upfront – and this is their advice:

You need to ask four essential questions you’re planning your next trip. They are:

Is my flight insured?
If it’s covered by Scheduled Air Failure Insurance, you’ll get all your money back for the unused portion of the flight if the airline goes out of business. If you haven’t started your trip, you’ll receive a full refund, or if you’re already on holiday, you’ll be repatriated. At ebookers, all their scheduled flights and low cost carriers are covered by the scheme.

Is the price when I book my flight the price I pay?
Some operators let you pay a deposit when you book flights but don’t issue the tickets immediately. If the price has gone up in the meantime, you end up paying more. Make sure your agent issues the tickets immediately – that’s what they do at ebookers.

Does my agent keep a check on airlines?
Your agent or operator should constantly check that the airlines they do business with are reliable. At ebookers, they do, and they won’t book you on to one they don’t trust.

Is my holiday ATOL protected?
The ATOL symbol means you’ll get a full refund if your travel supplier goes out of business. If you haven’t started your trip, you’ll receive a full refund, or if you’re already on holiday, you’ll be repatriated. And yes, you’ll find every holiday booked direct with ebookers is ATOL protected.

So…if you are off to France, to look for that dream property or to spend Christmas there, we can highly recommend that you book through ebookers. Click here for more details

The best thing we ever did…

On my last trip down to Montjoi I chatted with my good neighbours, John & Kaye Robson, now in their 12th year of living in France. Here is what Kaye had to say when I asked her if she ever looked back:

“We still pinch ourselves: I love the climate, the gentle pace of life, the kindness shown to us by the French people. I love the way the French shake hands, the way everyone says “bonjour” when entering a shop and “au revoir” when leaving. I love the stars at night, the peaceful mornings, the hot bread in the boulangerie. I feel as though my whole character has developed since we came here and I can say hand on heart I could never go back to the UK.”

Compelling stuff! If you are still dreaming about retiring to France, let us help you make that dream come true. Sure there will be hoops to jump through but we are here to make sure no-one trips up on the way through!

I do hope you have enjoyed this November newsletter. As I finish off, the Autumn sunshine is bright, and there is a feel of crisp winter weather to come.

I leave you with a heart-warming testimonial from one of our readers:

“Dear Kim,
Just a note to let you know that there is someone out there in the ether that enjoys, reads' and finds your correspondence useful. Thank you so much for all of this (especially the enjoyment bit) as we do not feel so alone in this enormous adventure that we are taking into retirement.

Regards (and respect for what you are doing),

Paul and Wendy B”

Please always feel free to call us - you will always receive a warm response. Until the next time, keep warm and au revoir!

Kind regards till next time,

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