Friday, August 15, 2008

Property AND Boats!

Lips property is proud to add new services on the French Riviera:

TLC Boat

Boat Bitch

Captain Pugwash

The Love Boat

Monday, December 3, 2007

Mandat de Vente

When you sell a property, your appointed agent MUST hold a signed mandate, that says you give them the power to advertise, visit and hopefully sell your property.

This is signed in duplicate, so that both parties can hold an original.

A MANDAT EXCLUSIF says that they - and only they - can sell your property for you. They may enter into collaboration with other agencies who may have interested potential buyers, but it is your appointed agent who should be present for all visits and handle all legal paperwork eventuating in the sale.

A MANDAT de VENTE SANS EXCLUSIVITE can be given to as many agents as you wish.

The agent, knowing that he will get a commission regardless of whether you or another person/agent sells the property, will spend more time and money placing your property in magazines or other advertising mediums (a glossy magazine may cost several thousand Euros).

He will be more attentive to your needs, and steer clients more towards your property.

You only have to worry about 1 person holding keys or leaving instructions, or handing out sensitive information.

The agent may not have clients, or be absent for long periods.

You may find your own buyer (or a third party) but still have to pay a part of the commission.

Less competition may lead to less exposure or a limited market

Difficult sometimes to break the mandate

Agents will be competing with each other to sell your property first

Usually, a quicker turnaround

Higher exposure

Agents will spend less time, money and effort if there is too much competition

You may have plenty of strangers traipsing through your property

In both cases, there is usually a time limit for a mandate - 3 months for exclusive and 12 months non exclusive - but it is up to you to decide. Usually, at the bottom of the mandate, is a form to be returned by registered letter should you change your mind or no longer wish to use the agents services (it may have been sold by another agent).

In any case, if you sell for a price which is not the same as the mandat price, then either a new mandate must be drawn up (with the modified price) or an avenant de mandate has to be attached.

Some buyers choose to have their own MANDATE DE RECHERCHE drawn up - thus paying the agent directly and saving on notary fees.

For more info, please feel free to contact us at our visit our web for useful information

Capital Gains Tax

Quite simple really.

If the property is your primary residence, you pay no CGT at sale regardless of your nationality.

If the property is a secondary residence, investment, rental - then you pay CGT on the PROFIT regardless of your nationality.

Lets say you bought for 1,000,000 € (plus notary fees - say 70,000 €) and sold for 1,300,000 € then you pay CGT on 230,000 € PROFIT.

If you are an EU National, this would be 16% ( 36,800 € in this instance)

If you are French - 26% (59,800 €)

Anyone else (or a business or company) then you pay 33% on the profit ( 75,900 €)

HOWEVER - after 5 years ownership, the CGT starts to decrease, and is 0% after 15 years - i.e. you've had a secondary residence for 15 years or more, and now want to sell - you pay no CGT.

You might choose to decrease your notary fees (roughly 7%) when you bought by having furnishings, kitchens etc listed and paid separately (thus not included in the notaires fees) - however, when you sell your profit margin will be higher (unless you repeat the process of this separate 'inventory') and thus paying more CGT.

For the sale, the notaire will automatically appoint a CGT specialist, who roughly charge 0.65% of the sale price. It is up to you to provide for them any legal work or justification of why they should diminish your profit margin from any advancements (and thus costs) associated with your property.

Even if you sell for a loss, the specialist will charge you.

For more info, please feel free to contact us at our visit our web for useful information

What Price A Seaview?

Okay - so you want to sell your property, or you've found the perfect acquisition - what's the real value?

An agents real task is bridging this gap between buyer and seller - no seller is going to under price their property, and no buyer is going to offer more than asked....

As a general rule on the Riviera - across the board - calculate on average 5,000 € per m².

But that's the easy part - what price for a seaview or terrace? Garage or pool?

In general, a constructor will count half the size of a terrace as 'liveable' - thus the additional price of a 20 m² terrace would be 50,000 € (1/2 x 20 m² x 5,000 €/m²).

A garage can be anywhere from 15,000 - 45,000 € depending on its suburb or parking density.

Other factors that need to be calculated include :

  • condition - often you can knock off a large sum arguing that it needs a new kitchen
  • aspect - morning or afternoon sun
  • ceiling height - belle epoque, mezzanines
  • flooring - parquet, tiles, carpet
  • monthly charges and services - and whats included or voted on recently
  • taxes - habitation and fonciere taxes vary from city and region
  • view - sea, garden, autoroute?
  • accessibility - elevator, local transportation or shops
  • room sizes - can walls be knocked out to make make larger
  • COS residual - can it be expanded
Often it is best to get a third opinion - even from a friend - as what you may have fallen in love with looks like a workers nightmare to unbiased eyes.

For more info, please feel free to contact us at our visit our web for useful information

French Property Crash?

Many of my buyers are standing off for the moment, to the dismay of sellers and agents alike.

Although there are strong global ties to similar circumstances in the US for example, it is difficult to name one factor, and often the reasons are false or the buyers have been mislead.

Some key points include:

  • A strong Euro currency
  • High interest rates
  • Ridiculous prices on the Riviera
  • Increasing interest rates
  • A glut of properties in general
  • A scarcity of decent properties
  • An impression that 'the bubble will burst'
This last point warrants a closer look, especially since the Riviera has its own micro - economy.

Similar to Florida, the Riviera is a haven for sunwoshippers, retirees, the wealthy, conventions and the nautical crowd....just to name a handful of its diverse community.

Whilst most of France may be descending in value or price, the Riviera holds its value well - little constructable land available, a high demand, excellent transportation and security.

Imagine you have just retired in Europe. Most will settle and live where they lived or worked.

Some will have a disposable income, perhaps travel for a year, then settle.

Some will have assets, perhaps a secondary residence in their capital or a holiday home nearby.

Those with a larger pension plan may have opted for the South of Spain, Portugal, Greece - where the climate and lifestyles are agreeable, but where the infrastructure is wanting in many facets.

And for those with the best choice financially, they will choose the South of France for its diverse activities, quality of life, access et al.

Thus already we can see one small community who will not be diminishing their purchasing power on the Riviera in the immediate future.

As their demand on criteria, access and location are often exact and limited, they will purchase what is available, often at the price asked - or risk waiting several years for another opportunity to arrive.

For more info, please feel free to contact us at our visit our web for useful information