Four Bits of Top News for 2012

TOP NEWS #1: SIGN THE PETITION TO FIGHT THE UNCONSTITUTIONAL RENTAL LAWS

When you visit Paris, do you stay in a hotel or rent an apartment? We all know that it’s much nicer and more economical to rent an apartment for stays of three days or more and that’s why so many thousands of visitors do. It’s also the reason an estimated more than 20,000 vacation rental apartments of this nature exist on the Paris landscape today.

Sadly, however, Paris is starving for housing. That’s why the city resurrected old laws (from 1948) to prohibit the rental of an apartment for less than one year (nine months for students). This unconstitutional (yes, it is!) ordinance deprives anyone wishing to stay in Paris less than that period the right to housing. Shocking, but true.

This is devastating for owners of such properties, renters, as well as anyone needing temporary housing for a whole host of reasons, and for the real estate industry on the whole, not to mention how it affects tourism and investment in the City of Light.

A federation was formed in 2009 to combat the problem. But the federation has closed its doors to individual owners and off-shore agencies…so it operates from a weaker position than it could (my opinion).

Meanwhile, one of the largest agencies, Paris Attitude, is launching its own campaign to force Mayor Bertrand Delanoë to take notice. With them, we stand to defend the rights of tenants and landlords. You can, too, just by signing their petition. Your signature remains anonymous, so you have nothing to lose by letting the city of Paris know that you don’t agree.

Sign the petition.

TOP NEWS #2: GREAT INVESTMENT PROPERTIES PRICES REDUCED

About one month ago, we ran a “SPECIAL EDITION” titled: “A Fraction (Or More), One Part and Two Apartments For Sale at Kilometer Zero.”

If you would like to own your own “pied-à-terre,” and want it to be in the very heart of Paris — in fact, at “Kilometer Zero,” next to Notre Dame, from which all points in France are measured — an owner has four offerings which might suit you perfectly at GREATLY REDUCED PRICES — priced to sell NOW.

One he calls “Rue Chanoinesse V.” Located on rue Chanoinesse adjacent to Notre Dame, is a 58 square-meter two-bedroom/two-bathroom luxury apartment on the ground level of an ivy-lined paved courtyard that makes an ideal rental property with a proven successful history of revenue.

What’s most interesting about this property is that because of its ground floor location, the short-term rental of this apartment perfectly complies with city ordinances and because it can remain under the management of the current agency, the new owner can rest peacefully while the returns flow in without one iota of hassle or downtime.

The asking price is an even bigger bargain now at 737,000€ (108,000€ LE
SS than when it was offered one month ago!) including all furnishings — 12,707€ per square meter for a property that needs not one drop of renovation work or furnishings (it was completely refreshed this past month) in a totally non-risk location!

This is your opportunity to own a piece of the heart of the City of Light and make an investment you’ll enjoy for years to come.

To learn more, visit Chanoinesse V or email [email protected].

The second and third ones, known as Chanoinesse VI, is an even more interesting proposition — because here’s your chance to purchase one part of an apartment or the two apartments in an entirety. Two apartments have been combined — a  studio with its own kitchen and bathroom and a one-bedroom with its own kitchen and bathroom, both united by one big beautiful 17 square-meter private terrace! And both apartments are in the same amazing historically classified building as Chanoinesse V!

You have the opportunity to either purchase the 25 square-meter studio on its own with access to the terrace, or the entire two-bedroom/ two-bathroom apartment. Both come completely furnished. Both come with ongoing rental revenues. There is nothing to do, but walk in with your suitcases and enjoy your own apartment that makes a perfectly sound investment in Paris.

The asking price for the studio alone was 395,000€, including all furnishings. TODAY’S asking price is 369,000€!! — 26,000€ LESS than one month ago. Should you want to purchase the one bedroom apartment alone, the asking price is 474,000€ and if you want them both, to use as one or two units as you please, the asking price is 842,000€, 108,000€ LESS than when it was advertised one month ago!…and it’s including all furnishings.

Both are big bargains considering this amazing location and the ability to move right in with no loss of revenue.

For more information, visit Chanoiness VI or email [email protected].

The fourth property is known as the “Jewel of the Seine.” This rare Paris apartment is also located next to Notre Dame and the Seine River, on the historic ‘Ile de la Cite.’ It has one master bedroom with a queen-size bed, and a second bedroom with twin beds, one-and- one-half bathrooms, and impressive views of Notre Dame’s towers. The building is on the banks of the Seine opposite the Hôtel de Ville and the Ile Saint-Louis. It simply doesn’t get more central than this.

The views of Notre Dame are breathtaking and the only noise you’ll hear are Notre Dame’s bells which ring only during the day. This is the heart of the historic center of Paris, and you can get anywhere in the city from this location.

The building is classified among Paris historical monuments. This apartment has been entirely renovated restoring its original wood floors, wood beams and moldings to their original beauty. The bathrooms and kitchen are exquisite. This apartment has been designed to offer a very comfortable upscale residence for your Paris stays.

The asking price is yet another bargain at 842,000€ including all furnishings. You move right in — there is absolutely nothing to do! It’s so unusual to have such a golden opportunity!

For more information, visit Jewel of the Seine or email [email protected].

If you’re thinking seriously about purchasing any one of these great properties (a bargain if you act fast!), don’t hesitate to contact us for more information at [email protected].

TOP NEWS #3: Paris Third Quarter Prices

End of September 2012, the number of transactions of apartments and homes has decreased by over 20% on average in a year, and in all departments of the Ile-de-France. This decrease in the number of sales is for both apartments and houses, new homes and old.

Since late September 2011, prices have increased more and remain at high levels, particularly in Paris.

With an average price per square meter of 5,590€, the Paris apartment prices have advanced very little since September 2011 (+0.3%), compared to the Petite Couronne (0.3% in one year, with an average price per square meter of 4,480€), or Grande Couronne (3,140€ per square meter average and -1% year over year).

In the capital, the price of apartments totaled 84,40€ per square meter up til September 2012 — an increase of 0.8% in one year and 1% in three months.

The most expensive arrondissement of Paris is the sixth with a price of 13,520€ per square meter, directly followed by the 7th arrondissement’s 12,170€ per square meter

The most affordable districts of the capital are 19th at 6,770€ per square meter and 7,120€ per square meter in the 20th.

In the third quarter, the largest increases in the prices of apartments in Paris are recorded in the 3rd arrondissement (+4.9% a year) and in the 13th district (4.1%).

A leading indicator by the Chambre de Notaires de Paris is on pre-sale contracts: the prices of resale apartments in Paris should continue to stabilize in the coming months to reach 8,470€ per square meter average in January 2013.

End of September 2012, the unit price of a house was on average 311,400€. This price decreased 1.2% in one year.

Economic and social factors do not  indicate a revitalization of sales in the coming months.

New provisions have been made for tax purposes, but these measures may not be favorable to the sale of flats and houses as in 2010-2011 when a series of fiscal and financial mechanisms had provided crucial support to the real estate business.

The undeniable attractiveness of interest rates is not enough to support the demand for apartments and houses.

The cornerstone remains, however, as a “safe haven.” The lack of credible alternative investments and the tightening of taxation does not encourage potential vendors to sell their property at lower prices. The market is expected in the coming months to be selective and always marked by those who wait and watch. The number of sales remain lower than the previous two years.

Finally, the continuing decline in the number of sales in the Ile-de-France, should eventually have an impact on prices, still high, but that could be reduced in the future.

TOP NEWS #4: Another Change in the Capital Gains Tax Laws

France Rethinks Capital Gains Tax Reform

by Ulrika Lomas, Tax-News.com, Brussels

Bowing to mounting pressure from business leaders across France, the government has decided to revise its plans to subject all capital gains to the country’s income tax scale, announcing that entrepreneurs will continue to benefit fr
om the 19% flat tax rate for the sale of a company.

Capital gains derived from the sale of a business in France are currently taxed at a rate of 19%, plus social levies imposed at a rate of 15.5%.

Plans to reform the capital gains tax regime within the framework of the latest 2013 finance bill provoked outrage from French entrepreneurs, who slammed the government’s anti-business policy, warning that it would merely serve to stifle entrepreneurship.

In their revolt, business leaders warned that the government’s proposals would increase taxes on capital gains to over 60%, once the highest income tax rate applies and social contributions are added.

Backtracking quickly, the government has relented and said that the 19% tax rate will continue to apply to the creators of a business, provided that entrepreneurs hold at least 10% of the capital of the company for a certain period (namely two to five years) and that they carry out a professional activity within the business.

Although business leaders have, for now at least, called a halt to their protests and demonstrations, the battle is far from won. Due to be presented to the French National Assembly Finance Committee shortly, the amendments have yet to be adopted by both the National Assembly and the Senate – and the debate promises to be fierce. petition

Special update by Blevins Franks

Gains on immoveable property (not including development land) will remain taxable at the 19% fixed rate, plus social charges, but with a special 20% deduction against the taxable gain after applying the current deductions for length of ownership.  This will apply from 2013.

Gains on development land will be taxed at scale rates from 2015 and the relief for length of ownership on such gains will be removed from 2013.

A bientôt,

Adrian Leeds
Editor, French Property Insider

Email: [email protected] 

 

 

  

 P.S. FPI issues #49 and #50 will be published on December 13th and 27th with no issue on December 20th as I’ll be traveling to the U.S.: New York (to be with my daughter), Los Angeles (to take advantage of L.A. weather and visit old friends) and New Orleans (to attend my 73 year-old sister’s wedding!). This will complete our 10th year of publishing French Property Insider’s 50 issues a year — that makes 250 great issues. If you have friends who are not receiving it and think they would benefit from this free publication, forward this email to them now and tell them to visit French Property Insider to read more and subscribe!