Closing Costs Costing Less and a Hot Property on rue Halevy
Volume XVIII, Issue 10
— Apartment for Sale —
CLOSING COSTS WILL COST LESS
In what is considered a highly-taxed society, tax cuts are in the making. Actually, it’s not the tax that has been cut, but the fees of the Notaire, who is, in effect, the tax collector for the government…to the tune of 1.9 percent off their previously regulated fees, as of May 1st. The tax portion of the fees is not changing.
Most people think the Notaires earn an obscene amount of money, but after working with them for twenty years, I am of the contrary opinion. Most of the fees assessed upon the closing sale of a property (a total of about 7 to 7.5 percent of the price of the property), paid by the buyer, are taxes (about 6 percent), leaving the buyer’s Notaire to share the remaining fees with the seller’s Notaire, after many months of work on the file compiling a mountain of documents.
In France, you have no choice, but to transfer the title of a property via a Notaire. Any other exchange of money and title is absolutely illegal. And there is no negotiation of the taxes, but there is up to 20 percent off the Notaire’s fees (for transactions over 100,000€). Both are highly regulated and the Notaire is held culpable for all aspects of the transaction. The fees differ by the age of the property (new or resale) and by the region.
I’ve watched how the Notaires have been imposed upon to gather even more documentation since the enactment of the ALUR laws and how their fees were reduced four years ago, and now again. I’m sure they are not happy and that will translate to poorer service. My free enterprise cultural default mode wants to make me scream for allowing the Notaires a free-range on their fees, just like other lawyers, but in France, that will never happen. We, consumers, have no way of improving the service we receive by encouraging what we see as fair competition. The French viewpoint is to level the playing field by enforcing the same rules and regulations…and therefore fees…for everyone, while we capitalists see how leveling the playing field is best done via free enterprise, meaning an economic system in which private business operates in competition and largely free of state control.
You can easily calculate how much your Notarial taxes and fees will be using the website of France’s National Agency for Housing Information (ANIL):
Let’s look at the taxes and fees you’d pay on a property purchase in Paris of 500,000€:
Notary’s TTC Emoluments 5,370€ 1.074 percent
Duties and taxes 29,033€ .058066 percent
Formalities and disbursements* 1,360€ .00272 percent
Real estate security contribution 500€ .001 percent
Total 36,263 € .072526 percent
* variable amount, valued approximately
It’s tough to swallow, but the good news is that you swallow it once and then the carrying costs (annual property taxes) are low…so, this is good news for you the buyer, even if it’s bad news for the Notaires.
HOT PROPERTY IN NICE STEPS FROM THE SEA…FOR SALE
This week I visited a property just on the market for sale in the Carré d’Or steps from the water, across the street from the iconic Le Méridien, with a large terrace facing east and tremendous possibilities to be converted into a two-bedroom/two-bathroom apartment.
In the pedestrian area of the quartier on rue Halevy just behind the Parc Albert 1er and the chic rue de Paradis of designer boutiques, in a superb art-deco building with direct access from the Promenade des Anglais (at #3), this large 76 square meters two-room apartment is on a high floor with lift, offering a large terrace and lateral sea view. It’s in perfect condition, with beautiful parquet floors, double glazing, a large living room, separate kitchen, and spacious master bedroom, however, the apartment can easily be renovated and reconfigured to add another bedroom and bathroom. The potential for this property to be a stunning slice of heaven in Nice is there for the taking.
Agency fees are included in the asking price: 595,000€
Annual charges: 2,400€
It will go fast! Contact us IMMEDIATELY to set up a viewing with our partner agent in Nice.
Adrian Leeds Group
P.S. If you are considering a property purchase in Nice, don’t do it lightly. Let us help you make the smartest decisions to ensure you make the best investment you can. We can also expertly advise you on how best to create a profitable rental. Contact us to learn more.