Prices, Processes and Parcels
October 15, 2009
Bonjour French Property Insider Subscriber,
Saturday I am speaking about "Property Investment in France" at the "Money Matters for Women" Conference here in Paris. The hour-long Powerpoint presentation will be made available to you next week…but that’s no excuse for not attending! Any woman interested in growing her portfolio should take advantage of the opportunity. Scroll down for more information and register to attend before it’s too late!
The Chambre de Notaire has reported on sales and property prices for second quarter 2009 showing that bottom has hit and the market is on the rise, even if slowly. Read all about it in today’s French Property Insider, with a full report, a table of the current figures and the download of their latest report in pdf format.
Along with the report, there’s a full explanation of the purchase process — a must read if you’ve never been through it, so that when you do get ready to buy your first property, you’ll know exactly what to expect. Keep this nearby as reference material.
There’s a new "salon" coming up for newly separated, divorced or widowed people — and advice will be on hand for any who seek it. Scroll down for the details. And don’t miss a variety of interesting articles from our sister publications…as usual.
On the property front, we’re taking a look at purchasing land and building your own home…an idea we don’t think about often enough! While it may seem like a big undertaking, sometimes a renovation of an old property can be more daunting and more expensive. Read all about it in today’s FPI.
And of course, there are Hot Properties (or should I say "Hot Lots" to whet your property appetite.
What more could you want? How about a new home in France? Well…we’re here to help make that dream come true.
Editor, French Property Insider
Email: [email protected]
P.S. Don’t forget that if you are a new subscriber or newly resubscribed, you can participate this coming Sunday in our Free Conference Call: "Own It All or Just a Fraction." We have a limited amount of spaces available for the call, so we need to take reservations to participate. If you have not done so, please contact Schuyler Hoffman was soon as possible to insure that you’re on our list. Once we have an email from you and verified your status, instructions on how to participate in the call will be sent to you. Email [email protected].
Volume VII, Issue 41, October 15, 2009
In this issue:
* Second Quarter Sales Up
* Basics on Buying French Property
* Last Chance to Get FPI at Half Price!
* Women’s Financial Conference This Weekend
* Life Style: Notaires Provide Practical Consultations
* FPI Fractional Property Offerings
* What You Need to Know About Buying Land in France
* Moneycorp: Take the Risk Out of Currency Conversion
* Helpful Hints Based on Personal Experience
* Free Consultation Offer Ending Soon!
* Parler Paris Apartments: Special Fall Discounts
* How to Design Your Own Rental Website
* Hot Property Picks: Longing Look at Land
* Property Show in the Fall: Focus on Luxury
* How You Can Obtain a Mortgage in France
* Parler Paris Après-Midi: Next Gathering Nov. 17th
* Managing Your FPI Subscription
* Subscribers Receive Discount on Insider Paris Guides
Prices in Paris fell by 4.2% second quarter 2009, although sales were up over first quarter, according to the Chambre de Notaires of Paris (as reported by INSEE) in their quarterly report:
Considering that the fall in prices was one of the most significant in history, it’s based on sales contracts signed during the winter of 2008-2009, the lowest point in the economic crisis. Annually, prices in Paris are 7.1% lower than the previous year at an average price of 6060€ per square meter — an average seen mid 2007.
Some districts have suffered more than others — above 10% in the 15th, 19th and 20th arrondissements. Central Paris suffered the least, with decreases as low as 2.2% in the 5th arrondissement. The highest prices are still to be found in the 6th arrondissement (9600€/m²), but the area also had the most serious decrease in prices with 5.4%. This is attributed to the large number of international buyers who at one time represented approximately 25% of all sales.
The Notaires report that most sales activity is on lower priced properties and with first time buyers rather than existing owners. They further predict that these small signs of recovering will translate during third quarter in sales volume and that we have already reached the bottom of the market.
Apartment Prices in Paris, Second Quarter 2009
1st Qtr 2009
2ndt Qtr 2009
to June 2009
In the Autumn report from the Chambre de Notaires (http://www.adrianleeds.com/frenchproperty/insider/members/content/) is a step by step guide through the process of property purchase in France. The following is an explanation/translation of their "dossier" "De la visite d’un bien immobilier à la signature de l’acte authentique de vente" in English with additional explanation that would be helpful to a non-resident buyer.
Step 1. The Purchase Offer
You find an apartment you wish to purchase (with financing) and the agent recommends you make an offer on the property.
In the offer, you propose to the seller a certain price, any contingencies to the purchase and a limited amount of time within which to respond to the offer.
Note: if you were to offer ‘asking price,’ the seller would be morally obligated to accept your offer and therefore you could virtually ‘guarantee’ the property would be held for you and no one else could ‘out bid’ your offer.
There are contingencies which could be very important to the offer, such as appliances and furnishings which you would want to ‘purchase’ with the apartment and any other requirements the seller must be obligated to fulfill.
Step 2. Choosing the Notaire
offer letter does not legally bind you to a purchase. If the seller accepts your offer, or if negotiations go back and forth until a ‘deal’ is set, then only until a "Promesse de Vente" or "Compromis de Vente" (purchase contract) is signed, is the contract binding.
It is at this stage that a Notaire must be employed to represent you and a date of signature is set. It is highly recommended that each party choose his own Notaire for representation and it costs not a penny more as the Notaires share their commissions.
We recommend working with a Notaire who speaks English and charges nothing extra for that. If you are working with a property consultant who is familiar with the documentation and process or a Notaire you fully trust, then a translation of these documents should not be necessary.
Step 3. Signing the "Promesse de Vente" or "Compromis de Vente" (Purchase Contract)
The Notaires will prepare the documentation for the signing of the Purchase Contract and you will be asked to provide a deposit held in escrow by the Notaire. This is normally 10% of the purchase price of the property, however, in today’s market with prices escalating in central Paris, sellers will often agree to holding 5%, as long as the buyer is willing to default 10% should a default occur.
At this time, the seller must provide the required diagnostics:
energy efficiency, termites, lead, asbestos, natural risk, swimming pools and the "Loi Carrez" (official habitable space). He must also provide the "Réglement de Copropriété" (homeowners association bylaws, the "carnet d’entretier de l’immeuble" (maintenance record of the building) and the copropriété annual fees.
The buyer, seller, representing Notaires and agents convene for the actual signing. Once the "Promesse de Vente" or "Compromis de Vente" is signed, you have seven days within which a full retraction of the purchase can be made with no financial or legal ramifications. This is called the "cooling off period." For legal reasons, a registered letter must be sent to notify the Notaires and the deposit will be returned within 21 days of the retraction.
Step 4. Preparing for the Final Signing of the Deed
Financing the Property
If you choose to finance the property, applications must be submitted to the banks. Non-resident buyers should work with banks and lending institutions that specialize in non-resident loans or with loan brokers that can provide the service.
The timing is critical, as the Purchase Contract will dictate the deadlines to acquire a loan offer and an 10-day waiting period is mandatory before an offer can be accepted. One contingency of the Purchase Contract ("clause suspensive") regarding the loan is a protection for both the buyer and seller outlining the specific conditions of the loan. If a loan of a particular amount, at a particular rate, and particular term, as requested by the buyer, is not achievable, by proof of the bank’s rejection of the applicant, then the buyer will not lose his deposit and the property will revert back to the seller.
Meanwhile, the Notaire gathers specific information and prepares for the signing of the final deed. He must verify that the seller is the rightful owner of the property, that the description of the property is correct in regard to the city planning and easements what money may be owed on the property.
Step 5. The Signing of the "Acte de Vente" (Final Deed)
You have received your loan offer and you have accepted it 10 days later. The day comes to sign your Deed of Sale. The Notaire’s dossier is complete and checks are prepared by you for the balance of the purchase responsibility (down payment, taxes and fees), by the lending bank for the payment to the seller and by the Notaires to pay the various commissions and fees.
Once again the buyer, seller, representing Notaires and agents convene for the actual signing. The keys are ready to transfer to you, the buyer, in exchange for the check of payment to the seller.
Step 6. The Final Payment and Deed of Sale
The Notaire hands over a check to the seller in full payment for the property and an "Attestation" of the sale to you, the buyer. The documentation will then be submitted to the Chambre de Notaires for official recording and processing. It may take six months or more before you receive the final recorded deed and normally there is a small refund of overpayment of fees, as the assessment at the time of closing is just an estimate and always greater than the final amount officially due.
Editor’s Note: The Adrian Leeds Group, LLC provides the following services that can take you from beginning to end, providing all the necessary resources along the way, including signing on your behalf with Power of Attorney:
* Property Finding Services
* Purchase and Sa
* Obtaining a Mortgage
* Fractional Ownership
* Appraisal Service
* "Après Vente"
* Renovation and Interiors
* Transfer Currency Least Expensively
Download our full brochure: http://www.adrianleeds.com/frenchproperty/consultation/fpibrochure.pdf.
When you renew your subscription for one more year or newly subscribe to French Property Insider at 50% off the regular subscription price (only $29 instead of $57.50 for 50 issues), you will be entitled to participate FREE OF CHARGE to a special Conference Call on Sunday, October 18th…
"Your Pied-à-Terre in Paris: Own It All or Just a Fraction"
Our very own Search Consultant, Mary Ellen Gallagher, will be on the call with me (Adrian Leeds), helping you decide what’s best for your Paris investment portfolio and what fits your needs and desires best…a pied-à-terre of your own or a fraction of one!
Subscribe or renew your subscription now!…for only $29 for 50 issues plus call in on October 18th to learn more about the differences between owning your own apartment or a fraction of one!
http://www.adrianleeds.com/frenchproperty/insider/members/signup.php or for more information go to http://adrianleeds.com/frenchproperty/insider
If you’ve never benefited from financial coaching, this is the place for you!
Come hear Adrian Leeds enlighten you on "Property Investment in France" 2 p.m. to 3:15 p.m.!
MONEY MATTERS FOR WOMEN is a half-day conference held in Paris, France for today’s global woman who wants to understand her current financial situation, plan intelligently and take proactive steps in managing her money.
The conference features:
- A dynamic keynote speaker
– Nine concurrent presentations and discussions with professional financial information
– A closing session for all conference attendees and a networking cocktail reception to end the day
This conference recognizes that women have unique financial goals and challenges which must be addressed. So invite your daughter, friend or neighbor to share in this empowering experience andwalk away with more confidence and the tools to own your financial uture.
The Money Matters for Women 2009 conference is presented by WICE and hosted by The American University of Paris. Special thanks to Smart Women Products for their continued support of this conference.For more information and to register, visit http://www.moneymattersforwomen.org.
The first salon in France concerning divorce, separation and widowhood takes place this coming November 7-8 at the Espace Champeret . On this occasion, the Chambre de Notaires de Paris will have a stand where Notaires will be on hand to provide consultations.
1 avenue de la Porte de Champeret
M° Louise Michel)
Saturday, November 7, 10 a.m. to 7 p.m.
Sunday, November 8, 11 a.m to 6 p.m.
To review the program in detail, visit http://www.nouveaudepart.fr.
To acquire free invitations, visit the Centre d’Information de la Chambre des Notaires de Paris at 1, boulevard de Sébastopol, Paris 1st.
If you are interested i
n traditional fractio
nal ownership properties currently offered by our Fractional Ownership partners, see below:
LE PALACE DES VOSGES
CHEZ LA TOUR
LE PETIT TRESOR
NOTRE MAISON DANS TOULOUGES
To see our latest Fractional offerings go to http://adrianleeds.com/frenchproperty/fractional/fractional_offerings.html
It is becoming increasingly popular to purchase a plot of land in order to build your own property. This is mainly because it can be a cheaper option than buying a resale house, even when the price of the land is combined with the construction costs. Of course, the other major advantage is that you can design a property exactly how you want, to meet your needs, desires and budget. So when acquiring your land, you will need to sort out the various planning permissions and decide whether or not to design the property yourself, use an architect, or ask a builder for a ready-made plan.
The majority of land for sale does come with planning permissions, and even if it does not have it is often sold with the view that you will be applying for a certificat d’urbanism. The certificat d’urbanism gives permission for property to be built on the land.
If the land does not have planning permission, you should visit the mairie to find out whether or not it would be worthwhile to apply for a certificat d’urbanism. If so, the mairie will be able to help you obtain and fill in the paperwork. They will also be able to check that your chosen plot can be easily connected to utility services, such as the power grid, water board, local sewage works and the telephone line.
Most land is sold with a certificat d’urbanism. You will need a permis de construire for all new building work. To apply for this, you will need plans, drawings and maps of what you propos
e to do with the land
. The mairie can assist with this. The permis de construire gives you permission to build your chosen property.
Some builders do offer to obtain your permis de construire, but this is a service in order to secure work and so ties you to one person and affects intellectual property rights. Legally, the builders own the rights to what they have made/created so they can charge you if you get planning permission and then do not use them for the building job.
If you are buying land with planning permission, check what it covers so that you know whether the type of house you want will be allowed to be built. Check what rights others have over your land, e.g. is it on a public footpath? Time spent checking all these factors will save you from being caught out further down the line…
Read the entire article at http://www.frenchentree.com/france-newbuild/DisplayArticle.asp?ID=35667.
The Moneycorp MasterCard Prepaid card can be loaded with euros or US dollars, by the main cardholder using a debit or credit card.
There is no line of credit with the card so you can only spend what you have loaded – helping you to stay in control of your money.
You can use your Moneycorp Prepaid Card to make purchases wherever the MasterCard Acceptance Mark is displayed– that’s over 26 million locations including 1.2 million ATMs worldwide.
It’s easy to manage your money with the Moneycorp Prepaid Card and account.
Take the Risk Out of Currency Conversion
If you’re buying a holiday home or investment property overseas, when you trade your currency is crucial. The euro exchange rate is constantly fluctuating, so trading at the right time will mean your money goes a lot further. Adrian Leeds Group LLC and Moneycorp are working together to ensure you make the most of your Dollar or Sterling when buying a property in France.
For the latest exchange rate use our currency converter at http://www.adrianleeds.com/frenchproperty/loan/moneycorpconvertor and learn more about moneycorp here:
We have been through the process of renovating houses in France several times and have learned from bitter and often expensive experience.
Here are a few tips:
1.Use natural materials wherever possible. This means, for example, chalk and sand for internal and external rendering; never cement. Chalk and sand rendering is flexible and allows the walls to breath.
2.If at all possible avoid dry lining with plasterboard, particularly downstairs. This prevents the walls from breathing.
3.Old tiles on the floor can be very appealing but they may be damp and difficult to keep clean. Be prepared to take them up and relay on a damp proof course and insulation.
4.Always specify oak for windows, doors and staircases. It looks better and lasts very much longer. It is not expensive in the Allier.
5.Always specify double glazing.
6.Think ahead to what eventually you want the house to look like even if you haven’t got the money to do it all at once.
7.Oil, electricity and gaz(s) are getting more and more expensive and there are good government incentives for using wood as a heating fuel, solar panels, wind power and other renewable energy sources. If you are going to use renewable sources of energy you need to plan carefully. Solar panels, for example, may require a separate hot water tank of its own and if you install them as an afterthought you may have to undo some of the plumbing you have already done…
Read the entire article at http://www.propertyfren
If you are a guest staying in any one of our luxurious Parler Paris Apartments, and would like to consider having your own "pied-à-terre" for your pleasure and profit, contact Adrian Lees for a FREE one-hour consultation while you’re enjoying the apartment in the City of Light. Visit http://www.adrianleeds.com/parlerparis/apartments for more information or email me at [email protected].
Parler Paris Apartments Welcome to your home in Paris. Home is how you will feel in a private apartment in Paris that has the "seal of approval" from Parler Paris Apartments and me, Adrian Leeds. Parler Paris Apartments offers high quality accommodations to make your stay in the City of Light as enjoyable and memorable as possible.
We at Parler Paris know each and every apartment owner or manager personally, and stand behind thequality of those we represent. We understand your needs and desires, all the small details that make a rental apartment a warm and welcoming home and a much better alternative to an impersonal hotel!Parler Paris Apartments is administered and serviced by the same great team as Parler Paris, French Property Insider and French Property Consultation. You can trust that Parler Paris Apartments and all those with whom it is associated will do heir best for your 100% guaranteed satisfaction.
SPOTLIGHT APARTMENT(S): Ask About the Last Minute Fall Special: 10% to 15% Discount off Advertised Rental Rates!…
3rd Arrondissement, Le Marais
Large Studio, Sleeps 2
"Le Provençal" studio, located on the quiet courtyard of a very charming 18th-century building in the heart of Le Marais, is the pride and joy of owner, Adrian Leeds, editor of the Parler Paris and French Property Insider newsletters. There isn’t an apartment in Paris more charming and cheerful…ask all who have had the pleasure of staying here. Le Provençal is completely equipped in spite of its size! Complete with a king size bed that converts to twin beds when desired, a Siemens brand washer/dryer combination, espresso maker, microwave, toaster-oven, two-burner ceramic stove, refrigerator, high speed Internet, flat screen TV, DVD player, stereo, and free(!) long distance phone service, this delightful and cozy studio makes a perfect Parisian home for one or two.
There are plenty of people who will happily deprive you of your hard earned cash to produce a website for you. The main things that put people off from making their own websites are (1) cost and (2) technical challenges. Well, you can do it yourself, often just as well as the professionals, and you’ll hardly need to get your wallet out. And you’ll get more satisfaction and more control.
This is the first of a series of entries, one to be released each week for the next few weeks, that has a very clear goal – to enable anyone to make their own website, at minimal cost. Although the example I will use is a gite / holiday rental website the exact same principles apply to any business, so whatever your need for a website you will hopefully find it useful.
The general plan is is to show a different stage in the process each week in such a way that you can’t go wrong. I will give detailed instructions and when necessary provide the code that you need and tell you what to do with it!
Because keeping things cheap is one of our goals we are going to use free tools whenever possible (which is pretty much always). I’ll tell you where to find the tools and what to do with them!…
entire article at http://www.francethisway.com/wp/website-design-for-gites-1/2009/07/.
Each week French Property Insider features a range of properties which we believe are on the market at the time of writing. These properties are featured in order to give readers a sample of what is currently available and a working example of prices being asked in various regions of France and districts of Paris.
This week we focus on land with building opportunities, found throughout France.
*** Courbillac: Land, approx. 1400m²
Building land in village setting. 1400 sq metres of flat land with outline planning permission, utilities close by.
Asking Price: € 23 200 + 2.5% Finder’s Fee
*** Montigné: Land, approx. 3800m²
In a village close to amenities building plot of approximately 3800m² with outline permission. Located in a village this plot of around 3800m² has a gently sloping aspect with open country views to one side. Outline permission exists to build a residential dwelling.
Asking Price: € 53 000 + 2.5% Finder’s Fee
*** Bourg Charente: Land, approx. 1709m²
Building plot with permission for one house. Just 1.5kms from Cognac Golf Club with its popular restaurant (open to non members). Also walking distance from the center of the village with a school, bar, general store and the region’s only Michelin starred retauarant La Ribaudiere.
Asking Price: € 60 156 + 2.5% Finder’s Fee
*** Haute Garonne: Land, approx. 6459m²
The building plot has a current Certificat d’Urbanisme (outline planning permission) for a house up to 250m2– large enough for a five-bedroom house if you need the space. The building land lies in the curve of a tiny lane, and an old stone barn and kitchen garden lie on the western edge of the property. Water, electricity and telephone are all immediately adjacent to the plot. There is also a well, once used to supply the needs of cattle, but which could be resurrected to water the garden.
Asking Price: € 88 000 + 2.5% Finder’s Fee
Notaires de Paris
Place du Châtelet
12 avenue Victoria
Additional information on Les Ventes aux Enchères des Notaires can be found on the Web site at www.encheres-Paris.com.
To read Schuyler Hoffman’s article about the property auctions in Paris, click on:
|The following properties were auctioned off October 13, 2009:|
Editor’s Note: If you look at the properties on the Notaire’s site (www.encheres-paris.com), when you click on the information for a particular property there is also a link to Google Maps to show you exactly where the property is located.
* Luxury Real Estate Trade Fair Loves Paris in the Autumn *
Not everyone can afford a private island or a fancy penthouse on New York’s Upper East Side. Still, for those who can, an invitation to the Luxury Real Estate Trade Fair will be just the thing to make the autumn seem brighter. And where better to promote high-end property than Paris, the world capital of chic? This elegant ambience will be further enhanced by the venue, Paris’s famous Musée du Louvre.
On the 27th, 28th and 29th of November 2009 Prestige-Paris will celebrate its third birthday with the assistance of France Convention, a specialist in niche and luxury trade fairs. This year’s gathering will be required both to meet the visitors’ very demanding expectations and outdo last year’s exceptionally successful event.
The recent recession has failed to affect the luxury sector as much as the rest of the economy, in fact the latest figures have revealed that the Parisian real estate market has improved. It seems that the most beautiful and luxurious homes never fail to find a buyer, a thought that will encourage participants in this most prestigious property exhibition.
When you make a purchase as important as a piece of real estate in a foreign country, you ant to know that you can trust the people you are dealing with. Adrian Leeds has developed a network of professionals that meet only the highest of standards. With the expertise and experience of Adrian and her team, you can depend on getting the best advice and support to feel completely confident that you are making an informed investment decision.
HELPFUL CONVERSIONS FOR REAL ESTATE
1 square meter = 10.7639104 square feet
1 hectare = 2.4710538 acres
For more conversions, refer to: www.onlineconversion.com/
The second Tuesday of every month, Parler Paris and French Property Insider readers gather at La Pierre du Marais for a drink and a "schmooze" –It’s an opportunity to meet and chat with other like-minded people
and a great way to make
friends! Costs nothing except your drinks. Don’t miss the next gathering Tuesday, November 17th, 2009 from 3 to 5 p.m. and every second Tuesday of the month (except August).
2. Click on "Manage Subscription." You’ll find it under the "Subscribers Only" section in the sidebar.
3. Enter your username and password.
4. On the Welcome Page, go to "Manage Your Account" and click on "Change Password/Edit Profile"
5. Once you’ve made the changes, scroll down to the bottom of the page and click on "Save Profile."
Of course, we’re always happy to help, so if you do need assistance, send an email to [email protected].
To access password protected pages: click on any of the links on the left panel of the home page of FrenchPropertyInsider.com under "Subscriber’s Only," then type in your personal username and password.
Past issues of FPI are available on the Web site. You will find the
"Past Issues" link on the left under "Subscribers Only" or by going to
www.adrianleeds.com/frenchproperty/insider/membersTo receive your free French Leaseback Report or the Paris Property
Report, click on
Insider Paris Guides are written for people who love the City of Light. You’ll get a Paris insider perspective on Restaurants… Making a Life… Black Culture… Expat Writers…and the newest guide, Practical Paris!
French Property Insider subscribers receive a discount of 10% off any uide and up to 25% off the entire purchase (if two or more guides are purchased at the same time). Here’s how it works:
1. Click on special Web link we give you just for FPI subscribers.
2. Then order one or more guide(s) and use the promotion
code "ED762." This promotion code gives you 10% off your total
3. If you order two or more guides, then an additional 15% will be
taken off automatically. There is no promotion code needed.
Here is the special "coupon" Web link just for you:
SUBSCRIBE TO PARLER PARIS
If you’re not a regular reader of the Parler Paris daily e-letter, and would like to be, simply enter your e-mail address here (it’s free!): www.adrianleeds.com/parlerparis
Copyright 2010, Adrian Leeds®
Adrian Leeds Group, LLC, www.adrianleeds.com