A visit to Cannes!

SURVEY: FRANCE : The art of the impossible

A morose France has fallen behind its competitors. But there is nothing inevitable about its decline, argues Sophie Pedder: all it needs is political will

Bridgeman

“SOMETHING seems very wrong with this country. Once the very model
of a modern major power—stable, rich and smug—it appears beset now by
political and economic instability and by civil unrest and disorder.
One observer has even taken to calling it ‘the sick man of Europe’.
Hardly a month passes without the appearance of a new book or learned
article on the decline and imminent demise of a once proud country.”

http://www.economist.com/surveys/displaystory.cfm?story_id=E1_RDQRNGV

Property Letter 60

Property Letter – 8th October 2006.

Dear All,

(Please scroll down if you want to get straight to the « Properties to Consider » at the end.)

Nostalgia.

It seems a long time since “Property Letter 1” which was sent to about a dozen people on 17th April 2002. Vicky and I and the family had been out of Zimbabwe for less than 4 months! The March 2002 parliamentary election had been violently orchestrated and stolen again, and farming in Zimbabwe seemed not to be an option for us anymore. With that we decided to start again – in real estate in France.

This is the 60th Property Letter and goes out to over 300 people around the world. A 60th seems worthy of a small celebration, so perhaps Vicky and I will open a special bottle with family when the opportunity presents itself, to toast and thank all who have supported and encouraged us!

On Capital Appreciation vs. Rental income

Capital gain is the reason everyone gets into property investment but it is the rental income that finances the deal while you
wait for the value to rise. In fact it is rental income that consumes a landlord and is a key factor in determining whether new buy-to-let investors stay the course.

Many first time BTL investors will sell up after a year and take the capital gain, and often a significant one at that, simply because they are struggling with the balance sheet.

Property Letter Postscript : July 8th 2006

Dear All,

Somebody should go for this one! It’s that simple.
Vicky and I found it yesterday, and I have been waiting for a few details to come clear

before writing.

If you think you can, and if it suits your needs, please get back to me right away, between

Wimbledon and World Cup distractions that is – I’m supporting France in the Ladies Tennis

(Amelie Mauresmo) and in the Football!

Kindest regards,

Guy.

Property Letter: June 29th, 2006

Vicky and I will be in Cape Town for the month of August and I hope we will be able to see some of you there.

Cannes is amazing this year.
I suppose it is inevitable that we would feel increasingly secure in our environment, and we have been here for over four years now – we’re no longer “new boys” on the block.

Cannes Property Summary - UPDATE OCTOBER 2005

We continue to learn here every day:

The more we learn the more we know that we have very good long term prospects in Cannes, doing exactly what we are doing, and doing it very well. Our focus from the beginning has been on properties that you and I might not necessarily buy for ourselves and our friends and family, but on income generating units that have the ability to increase in capital value too.

Increasingly however people are asking us to source properties that they wish to keep as second or holiday homes, and are less interested in rental prospects and more in the potential for capital appreciation, and for enjoyment and personal use. It is a slightly different emphasis and equally rewarding for us and them.

We have visited the Cote d’Azur for many years. However before we started buying three and a half years ago we again travelled up and down the length of it. We looked at Nice, Villefranche which we love, Monaco, Menton, Cagnes sur Mer, Antibes, Baai des Ange, and Juan les Pins. But every piece of investment intelligence we could gather pointed us at Cannes, and within Cannes, at the Croisette. Consequently most of the 40 or so apartments we have bought are within a stones throw of the Croisette or on it, and within 15 minutes walk of the Palais des Festival.

Syndic & Co-Proprieties

The following explains the responsibilities of the owners and elected management of a building owned jointly by individual owners of apartments within the building.

French law defines in great detail both the rights of apartment owners within a Co-Propriété - a residence or immobilier or building split into separate and physically distinct apartments - as well as their responsibilities to other owners. These are detailed in the volume of rules and regulations that each owner should receive from the Notary at the same time as the title to their property.

Taxes on French Property

Disclaimer
Tax and property law are complex. Every effort has been made to offer information that is current, correct and clearly expressed. The information in this summary is however intended to be no more than a general overview of the position and certain details have been deliberately omitted. The contents of this page should not be taken as an authoritative statement of French law and practice. Neither the author nor the publisher are responsible for the results of actions taken on the basis of information contained in this summary, nor for any errors or omissions. This text is not intended to render legal, accounting or tax advice. Readers are encouraged to seek professional advice concerning specific matters before making any decision.

French Tax on Residential Property

The two principal taxes on residential property are collected by the State for the benefit of the collectivités territoriales, namely the local authorities of the Région, Département and Commune.

What taxes are there?

• The principal taxes are taxe foncière
• and taxe d’habitation. Both apply to all residential property - houses and flats.
These taxes are each assessed at an individual rate voted by each collectivité territoriale. They vary in very substantial proportions from one location to another. The commune rate of tax is often higher in main towns than in suburbs or small villages. Before renting or buying a property it is therefore wise to request details from the estate agent or owner.

French Taxes

Disclaimer
Tax law is complex and every effort has been made to offer information that is current, correct and clearly expressed. The information in this summary is intended to be no more than a general overview of the position and certain details have been deliberately omitted. The contents of this page should not be taken as an authoritative statement of French tax law and practice. Neither the author nor the publisher are responsible for the results of actions taken on the basis of information contained in this summary, nor for any errors or omissions. This text is not intended to render legal, accounting or tax advice. Readers are encouraged to seek professional advice concerning specific matters before making any decision.

Wealth Tax

French residents whose net assets exceed a certain level are liable to pay an annual wealth tax. This tax is calculated by referring to an individual’s worldwide wealth, after deduction of liabilities. However, there are exemptions for business assets and works of art, subject to the proviso that a number of specified conditions are met.