French Investors Fleeing France Present an Open Door for Foreign Investors in France

Yesterday was the longest day of the year — summer solstice. Did you miss it? Traditionally it arrives on June 21st, but this year the sun hit its highest peak north of the equater a day earlier. Another tradition on June 21st that IS taking place today is “Fête de la Musique,” the one day a year that the entire country and now much of Europe has chosen to celebrate music and musicians in all their forms.

While none of this has much to do with real estate in direct terms, the point is that events such as this and all the other publicly-held events attract a lot of tourists, visitors and ultimately foreign property investors — who want to have their small bit of such a desirable spot on the planet.

President Hollande in London – photo courtesy of newyorker.comMeanwhile thanks to the vote electing Socialist François Hollande to the office of the presidency has stirred investment in the U.S. by French investors. The promise of a 75% income tax rate for revenues above 1 million euros is already resulting in a net cash flow out of France. French investors are redirecting their interests to such luxury real estate properties as in New York City and Miami.

London is also feeling the exodus of French investors to other markets. In South Kensington, known as “Paris-on-the-Thames,” French investors are the second biggest group in the first quarter of this year after British buyers, accounting for 8% of property purchases. Inquiries from French clients have increased by 19%. With 300,000 French residents, London is now France’s sixth-largest city.

How will this affect the French property market? If investors are taking their money elsewhere, we could see the decrease in prices the industry has been predicting all along — but for different reasons. And perhaps this is an opportunity for foreign buyers whose tax residency is anywhere, but France.

To read about the latest statistical report, refer to our recently past newsletter: French Property Insider.

You can check the latest property price trends in Paris and the Ile-de-France by visiting, Paris Notaires.

The property prices in Ile-de-France and the provinces are also on the application of Notaries of France, available on iPhone, iPad and Androïd. “This application allows you to check housing prices in more than 36,000 French towns. Data are updated monthly and faithfully recreate the reality of the market. You have a quarterly, annual and 5-year evolution and housing prices index. The calculation tool “Notaires’ costs” allows you to estimate the amount of taxes and other items that you must include in addition to the sale price. The distribution of those costs is suggested. The data are provided for guidance and do not represent a contractual commitment. You can easily save your searches and your market prices simulations fees to your favorites. Before any real estate project, consult your notaire. More than 9,000 notaires are spread throughout the country.” More information is available at Notaires France.

Download the application for Android.

Download the application for iPhone and iPad.

A bientôt,

Adrian Leeds
Editor, French Property Insider

Email: [email protected]

P.S. I’ll be speaking Monday, June 25th at the Property Investors Network meeting about:

* Financing your French property…using other people’s money
* How to get the best return on investment from your French property
* What the truth is about the legislation prohibiting rental of property for less than one year

The first time you attend is FREE for readers of our newsletters! Book your seat now and make sure you bring plenty of business cards with you for some great networking with other like minded, successful property investors. For your free seat, all you have to do is register using the promotional code “Adrian.” Visit Conferences and Workshops  or PIN Meetings for more information.

ALSO…join us for the first meeting of the Aussie-Francophile Property Network Meetup June 26, 2012 from 6 to 7:30 p.m. upstairs at La Pierre du Marais! Meet with Sarah Potter, Director of Endroit Property Pty Ltd and me to learn more about living and investing in France. It’s free and it’s informative! Visit the Aussie-Francophile Property Network and please tell all your Australian and New Zealand friends about it!

AND…Help our long-standing staff member, Schuyler Hoffman, receive a small business grant to make improvements to his B&B in New Orleans, Chez Palmiers. With at least 250 votes at Mission Small Business by June 30th, he and his partner can qualify and be considered for a $250K grant! To cast your vote, all you have to do is:

1. Go to http://www.missionsmallbusiness.com/ and login using Facebook or create your own login.
2. Search for “Chez Palmiers”
3. Click on the blue Vote button next to our business name to show your support for our business.

Schuyler Hoffman and David Peterson really appreciate the support!
 
Chez Palmiers Bed and Breakfast
1744 N Rampart Street
New Orleans, LA 70116
Local: 504.208.7044 or 504.729.8686
Chez Palmiers Bed and Breakfast