On the Rise: Prices, Tourism and Taxes

FRENCH PROPERTY PRICES AND SALES ON THE RISE

They weren’t joking when the Chambre de Notaires predicted that prices would rise 6% this year. We’re watching it happen before our very eyes. This past week, three of our clients “grabbed” properties being among the very first to visit them, then made full price offers (which the seller is morally obligated to accept) knowing that if they didn’t, someone right behind them would grab them up even faster.

When Brexit was voted in the U.K. I thought that British expats would sell their French holiday homes and repatriate the money while the British sterling was weak, but that’s not what happened at all. Instead, those opposed to Brexit showed a renewed interest in locations outside of the U.K. and sales in France took off. The same thing has happened with the election of U.S. president Donald Trump. Those “on the edge” have fallen and are seeking an alternative or “backup plan,” so they are investing as quickly as they can in a place they love — France.

Some market analysts are predicting a 30-year high in domestic sales in France. Sales volume is up 15% over last year, and this is the highest we’ve seen since the financial crisis of 2008. Buyers are recognizing that prices are destined to go up, so now’s the time to buy…NOW. With interest rates at an all time low (under 2%), and the rate of exchange with the U.S. dollar stronger than ever, that compounds the need and desire to make an investment before it’s too late.

There is a substantial increase in foreign buyers — American among them. French buyers are active, too, and there is a forecast for others from the Eurozone to be interested in France, thanks to the quality of life here in France. Various areas of France are seeing more than others, naturally, Bordeaux being one of them and other rural towns and villages where prices are still low, such as Brittany, Normandy, Poitou Charentes and Languedoc-Roussillon. We have clients who are currently looking for homes in these regions — unusual for Americans who normally are attracted to Paris, Nice and Provence.

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TOURISM ON THE RISE

France 24, the national news channel, just reported today that tourism is on the rise in France after the last two years of terrorist activity. In the last three months, tourism has rebounded 4.3% and overnight stays by foreigners increased by 2.9%, according to the INSEE national statistics agency. In spite of terrorist attacks on France, it continues to be on of the most popular destinations in the world with about 85 million foreign visitors annually.

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THE TAX MAN COMMETH

April 15th isn’t that far away, so best to prepare for your tax returns now. Even Expats have to file U.S. tax returns, regardless of whether you earned any money in the U.S. or not, so don’t be complacent.

Make note of Carl Mir’s Free Tax Seminar – US Taxes for Expats 101

As Americans, all persons are required to file annual tax returns regardless where you live in the world. There will be a presentation by Carl Mir of Mir Taxes who will discuss U.S. tax issues obligations for U.S. expats. Time will be available for questions.  

Thursday, February 23, 2017 – 6:30 PM
In the Offices of Dunhill Financial – Avenue des Saisons 110, Brussels
Doors open at 6:15 p.m.; seminar starts promptly at 6:30 p.m.
Complementary beverages will be served.
Please sign up in advance.
 
If you’re not in Belgium and can’t make it to the seminar, but still need tax assistance, Carl can assist you with the preparation of your U.S. tax filing. Contact him today via email or phone with any questions, issues, consulting, etc.

Carl Mir
US Taxes, Consulting & Expat Financial Services
Mir Enterprises US, LLC
Email: [email protected]
Mobile-Belgium: +32 0494 27 97 63
Business-Belgium: +32 (0)2 644 6625
Business-U.S.: +1 (919) 960-1499
Skype: Mir.Enterprises.US
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A bientôt,

Adrian Leeds
The Adrian Leeds Group

 Respond to Adrian: [email protected]

P.S. The term “Long-Term” applies to furnished or unfurnished apartments available 3 months to 3 years. The vacation apartments offered on Parler Paris Apartments are designed for short-term rental — from 3 days to 3 months. We recommend our search service for Long-Term rentals to ensure that you will have proper accommodations. You’ll find details for these services on our Long-Term Apartment Search page.