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Property Insider ©Copyright 2011 |
Ten Trends for 2010
(FOR SUBSCRIBERS ONLY) December 10, 2009 Bonjour French Property Insider Subscriber, Today's issue is all about 2010 and what's in store for French property in the coming year. Of special note is an apartment featured for sale that is 'turn-key' -- a current successful short term rental apartment in the heart of the Marais that is being sold with all its furnishings, ready to go. It's a deal for someone wanting a fast and easy investment that is guaranteed to bring in revenues. Be sure to read in today's issue how France is among the top ten property investment spots in the world (no surprise) and that "Le Palace des Vosges" fractional ownership apartment is offering a big discount to buyers who commit to their share before the end of the year. Owners are in the apartment now fully enjoying its splendor. You could be one of them! The legal issues surrounding short term rentals in Paris are in discussion with preparations for taking action by the big agencies. Stay tuned with our weekly updates and with the solutions we will find for our clients and readers. The International Living Quality of Life Index is currently in progress for 2010. France always ranks very high and we expect no less for the coming year. We'll be reporting on it as soon as they publish their findings, but in today's issue, read all about the criteria the countries must meet to make the grade. The City of Paris has launched a new real estate Web site for all to take advantage of and it is foreseen that Paris will see more business travelers in the coming year -- creating more opportunities for all. There are at least ten articles of interest in today's FPI -- all with an eye on the future and the advent of 2010. Don't miss a single one and get ready for a great new year ahead here in France. A bientôt, Adrian Leeds
P.P.S. Photographer Erica Simone will be making her New York City West Village studio apartment available for rental while traveling in Southeast Asia from February 1 through the beginning of April. If you are interested, please email her at erica@adrianleeds.com. Volume VII, Issue 48, December 10, 2009 In this issue: * Turn-Key Property on the Market HOT PROPERTY! Proven Rental Studio on rue de Picardie €237,500
Asking Price €237,500. For more photos, visit http://www.vacationinparis.com/apts/sub/49_photos.htm, and for more information contact j_buzek@hotmail.com. Top
10 Overseas Property Investments In 2010 http://www.finance-worldwide.com
One local expect projects Brazilian property prices could appreciate by up to 200% over the next decade, driven by the country’s burgeoning economy, and the pending introduction of mortgages to overseas nationals. Investment banking firm Goldman Sachs believes that Brazil’s economic growth could outstrip that of the other BRIC (Brazil, Russia, India and China) member nations over the next few years. Brazil’s economy is widely expected to become the fifth largest in the world by the time the Olympic Games kicks off in 2016, and yet Brazil property and land prices still remain a fraction of those found in more developed nations. The Brazilian president Luiz Inacio Lula da Silva has already pledged to spend up to £11.5bn on building a million new homes in Brazil between now and 2011. However, potential high property investment rewards are not with out their risks, as crime and corruption still remains widespread in Brazil. 2. France France has traditionally always been a rather safe haven for property investors. The nation was the first European country to come out of recession in 2009, reflecting the fact that the global credit crunch had much less of an impact, compared to other European counterparts. France’s strong economy is having a positive impact on its property market, which now appears to be on the road to recovery. Increasing property and mortgage transactions are boosting residential values, with the latest FNAIM data revealing that the average price of a French property appreciated by 2.8% between April and September 2009. Although average prices remain down 7.8% year-on-year, the market is generally expected to improve further, due to France’s prudent attitude to mortgage lending. Anyone taking out a mortgage in France is generally only permitted to borrow one third of their total gross monthly income. This has ensured that mortgages remain readily available, with 100% loan-to-value home loans available at competitive borrowing rates. Consequently, mortgage lending in France is soaring. French mortgage broker Athena Mortgages reports that there was a 21% rise in mortgage enquiries in Q3 2009 compared with the previous quarter. The buy-to-let and leaseback sectors are reportedly attracting particular interest from investors, due to improved yields across the country. The capital city of Paris has long been identified as one of the most attractive European cities for investment, and is typically the most popular place to buy a home in France, along with Cannes, Marseille and Nice, which are all located along the southern Mediterranean coast... Read the entire article at http://www.finance-worldwide.com/top-10-overseas-property-investments-in-2010/. Palatial
Living in Le Palace des Vosges...Special
Offer Ends Soon! If you've followed the progress of "Le Palace des Vosges" (our Fractional Ownership property at Paris' best address) over the past year, then you'd know that the first owners are already enjoying the property. Just before they arrived, we had an opportunity to take a full video tour of the finished product and new photos!...
If
you're unable to view the video above, to see the latest video
(produced by http://www.screen-view.fr/),
go to: The latest photos are available at http://www.palacedesvosges.com/PDV_decor.html. Special offering to French Property Insider Readers:Purchase a share and have your 15,000€ deposit received in the escrow account by December 31st, 2009 and receive a 5000€ discount off the price of your share!!! Eight shares are still available. For more information about how to purchase your share of Le Palace des Vosges, visit http://www.palacedesvosges.comor email Mary Ellen Gallagher at maryellen@adrianleeds.com. French Property Prices for 2010 http://www.guide2poitoucharentes.com
In France the price of ones house doesn't hold the same kind of compulsive fascination as it does across the channel. Houses are somewhere that you live and watch your family grow up in. The French move house far less regularly than Brits and aren't used to seeing it's value bob up and down like a yo-yo. If there's one learned during twenty odd years in the property industry it's that it is an absolute lottery predicting house prices. All of the august bodies mentioned above have teams of highly paid researchers that crunch the numbers, analyze the statistics and then make a wild guess while adding in all kinds of caveats. At the start of 2009 almost everyone predicted a year of double digit percentage falls in price. Yet, if the HM Revenue & Customs are to be believed, house completions rose from 41,000 in January to 90,000 in October. The Nationwide says that if prices remain unchanged this month that they will have increased 6% throughout the year. Many other lenders tell a similar story with the Halifax saying that prices are now up for the 5th month in a row. It's a different story in France and FNAIM is saying that average prices are likely to have dropped by around 5% this year... Read the entire article at http://www.guide2poitoucharentes.com/news/263/French-Property-Prices-for-2010. The
City of Paris Launches a New Real Estate Web Site
The first bank of information are of offers for sale of more than 350m2 proposed by semi-public companies classified as "SEM" -- "sociétés d'économie mixte." Today the site offers approximately 700,000m2 of property, primarily in Paris and the Ile-de-France region. Visit the site at http://www.immobilier.paris.fr. Quality of Life Index: 194 Countries Ranked and Rated to Reveal the World’s Best Places to Live in 2010 http://www.internationalliving.com
To produce this annual Index we consider nine categories: Cost of Living, Culture and Leisure, Economy, Environment, Freedom, Health, Infrastructure, Safety and Risk, and Climate. This involves a lot of number crunching from "official" sources, including government websites, the World Health Organization, and The Economist, to name but a few. We also take into account what our editors from all over the world have to say about our findings... To rate and rank the 194 countries considered in this year’s Quality of Life Index, we took into account: Cost of Living (15% of the final ranking). This is a guide to how much it will cost you to live in a style comparable to—or better than—the standard of living you’re likely enjoying in the U.S. Our primary source in this category is the U.S. State Department’s Index of Overseas Living Costs, used to compute cost-of-living allowances for a Western-style of living in various countries. We also consider each country’s income tax rates. Culture and Leisure (10%). To calculate this score, we look at literacy rate, newspaper circulation per 1,000 people, primary and secondary school enrollment ratios, number of people per museum, and a subjective rating of the variety of cultural and recreational offerings. Economy (15%). We consider interest rates, GDP, GDP growth rate, GDP per capita, the inflation rate, and GNP per capita to determine each country’s Economy score. Environment (10%). To figure a country’s score in this category, we look at population density per square kilometer, population growth rate, greenhouse emissions per capita, and the percentage of total land that is protected. Freedom (10%). Freedom House’s 2009 survey is the main source for these scores, with an emphasis on a citizen’s political rights and civil liberties. Health (10%). In this category, we look at calorie consumption as a percentage of daily requirements, the number of people per doctor, the number of hospital beds per 1,000 people, the percentage of the population with access to safe water, the infant mortality rate, life expectancy, and public health expenditure as a percentage of a country’s GDP. Infrastructure (10%). To calculate a country’s Infrastructure score, we look at the length of railways, paved highways, and navigable waterways in each country, and equated these things to each country’s population and size. We also consider the number of airports, motor vehicles , telephones, Internet service providers, and cell phones per capita. Safety and Risk (10%). For this category, we use the U.S. Department of State’s hardship Differentials and danger allowances, which are based on extraordinarily difficult, notably unhealthy, or dangerous living conditions. Climate (10%). When deciding on a score for each country’s climate, we look at its average annual rainfall and average temperature…and consider its risk for natural disasters... Read the entire article at http://www.internationalliving.com/Internal-Components/Further-Resources/quality-of-life-2010. Watch
Adrian Leeds and French Property Consultation on
AIR
TIMES: House Hunters International Episode HHINT-402: http://www.hgtv.com/house-hunters-international/settling-down-in-paris/index.html To learn more, visit http://www.AdrianLeeds.com or email Adrian Leeds, at adrian@adrianleeds.com. www.adrianleeds.com/frenchproperty/fractional If you are interested in traditional fractional ownership properties currently offered by our Fractional Ownership partners, see below:
To see our latest Fractional offerings go to http://adrianleeds.com/frenchproperty/fractional/fractional_offerings.html Rental
Reader Beware: An Update Please read Part I in last week's issue: http://www.adrianleeds.com/frenchproperty/insider/members/content/pastissues/FPI_December_3_2009.html
The director of the Office du Tourisme will make an opening presentation. The plan is to take a perspective on the law in question (article L631-7), its historic implications and to then make a non-alarmist communication to the public of their findings. Their objective is to form a federation with which they can address problems of this nature and work with the city to protect the industry. I have consulted with two advisors for the Adrian Leeds Group, LLC: our Expert Comptable (CPA) and Property Attorney in regard to the situation at hand. Our goal is to provide our clients (our apartment owners, investors and renters) with a LEGAL solution that will satisfy the city regulations, yet protect our investments and interests. The government's initiative in this case is part
of the Mayor Bertrand Delanoë's plan to increase housing.
See
We believe that his plan may be possible, but
realistically, if it were to truly succeed, it would cause an
economic disaster of massive proportion they had not foreseen.
We can only hope their plan will be thwarted thanks to the efforts
of the industry and our ability to find a legal solution to offering
rentals of less than one year in properties classified as 'habitation.' Could 2010 See More Business for French Property Owners?
According to travel management firm Egencia, those who travel for business are likely to take more trips next year - and many may be choosing to stay in French property in the "economic hub" of the French capital city. UK vice-president and managing director for the firm Christophe Peymirat said: "What we have are the main economic hubs, like London, Paris, Frankfurt and Berlin, who will see a stronger demand, but the negotiability index will be lower."... Read the entire article at http://www.rightmove.co.uk/overseas-magazine/could-2010-see-more-business-for-french-property-owners. The USD - US Dollar weekly update Provided by MoneyCorp
Sterling started last Monday at $1.6550 and passed through that level another four times before the weekend. Investors were no more certain which way to take it than they had been the previous week. They had a look at $1.6350 and $1.6750 but could not make up their minds which looked better. When London opened this morning the pound was trading at its lows. Sterling began the week as it had ended the previous one; under the microscope. Investors were more relaxed regarding the default of Dubai World and the exposure of UK banks to the firm. However, they were still sensitive about government debt, which is expected to reach 80% of Britain's economic output before long. Investment bank Morgan Stanley fanned the flames with a research paper. It said 'In an extreme situation a fiscal crisis could lead to... severe pound weakness and a sell-off in UK government bonds. The Bank of England may feel forced to hike rates to shore up confidence in monetary policy and stabilize the currency, threatening the fragile economy.' Nobody could accuse Morgan Stanley of pulling its punches. On the positive side, there were some chinks of light from the Bank of England. Monetary Policy Committee member Adam Posen said in a speech that the UK economy has probably passed its lowest point. His colleague Spence Dale, who is also the Bank's chief economist, went down a similar track the following day. He told an audience in Essex that 'the economy appears to have turned' and 'we are likely to be moving into a period of renewed expansion.' For much of the week the economic data coming out of the United States was disappointing. The purchasing managers' indices (PMIs), compiled from surveys of businesses across the country, operate on a scale of 0-100 where 50 represents the neutral point between falling and rising activity. The PMIs for the manufacturing and services sectors have been rising in recent months, adding to the image of recovery. Last week the figures for November both went down by a couple of points. The manufacturing index dropped to 53.6 while the services sector measure fell back below the boom/bust divide to 48.7. It was a very different story on Friday with what is probably the most important economic statistic to investors; US non-farm payrolls. The tally of US jobs created or lost each month is seen as a critical pointer to how the US economy - and therefore the world economy - is doing. Analysts expected the November figure to continue the trend of the previous two years of job destruction, this time to the tune of around -120,000 jobs. When a figure of -11,000 appeared on their screens traders stared in disbelief, thinking it must be a typo. It was not, and to put icing on the US economy's cake the October number was revised upwards from -190,000 to -111,000. That worked out at 188,000 more jobs than investors had been expecting. For once, a good US economic statistic was good for the US dollar and it finished the week on a high note. So another week of good-news-bad-news from both sides of the Atlantic left investors no wiser than they had been at the outset. We remain stuck with a pound/dollar relationship that cannot make up its mind what to do and, therefore, does nothing. We also therefore remain saddled with a neutral risk management strategy. Buyers of the dollar should hedge half their requirement with a forward purchase. Those with a short time horizon who do not want to cover their whole exposure should protect themselves with a stop order. For more information, visit: http://www.adrianleeds.com/frenchproperty/loan/moneycorpconvertor.html and learn more about moneycorp here: http://www.moneycorp.com.
Take the Risk Out of Currency Conversion
For the latest exchange rate use
our currency converter at http://www.adrianleeds.com/frenchproperty/loan/moneycorpconvertor
and learn more about moneycorp here: Important: With the holidays almost upon us, we would like to advise you of our opening times over the next few weeks. The office will be open as usual between 8:30 a.m. and 5:30 p.m. (AEST) Monday to Friday, except on the following days: Thursday 24 December - 8:30 p.m. to 3:00 p.m.
(AEST) Please bear in mind if you need funds delivered urgently, we suggest that you allow more time than usual. One-Hour Consultation with Adrian Leeds Free! If you are a guest staying in any one of our luxurious Parler Paris Apartments, and would like to consider having your own "pied-à-terre" for your pleasure and profit, contact Adrian Leeds for a FREE one-hour consultation while you're enjoying the apartment in the City of Light. Visit http://www.adrianleeds.com/parlerparis/apartments for more information or email me at adrian@adrianleeds.com.
a private apartment in Paris that has the "seal of approval" from Parler Paris Apartments and me, Adrian Leeds. Parler Paris Apartments offers high quality accommodations to make your stay in the City of Light as enjoyable and memorable as possible.We at Parler Paris know each and every apartment owner or manager personally, and stand behind thequality of those we represent. We understand your needs and desires, all the small details that make a rental apartment a warm and welcoming home and a much better alternative to an impersonal hotel!Parler Paris Apartments is administered and serviced by the same greatteam as Parler Paris, French Property Insider and French Property Consultation. You can trust that Parler Paris Apartments and all those with whom it is associated will do heir best for your 100% guaranteed satisfaction. SPOTLIGHT APARTMENT(S): Le Provençal Studio Le
Provençal Studio
There are only a few apartments still available for Christmas and New Year's Eve, so book fast! Be sure to visit Le Provençal, Le Deco and Le Balcon Planté! Visit www.adrianleeds.com/parlerparis/apartments/rentals/saint-germain.html. For more information go to www.adrianleeds.com/parlerparis/apartments or email:apartments@adrianleeds.com.
French Wealth Tax http://www.talesfromthefrontline.com
There are lots of anecdotes about “poor” people having to pay wealth tax. On the Ile de Ré in north west France, property values are so high that it is quite common for pensioners, living in a property inherited from their parents and grandparents before them, to pay wealth tax, even after “principal home” allowances... Read the entire article at http://www.talesfromthefrontline.com/2009/12/09/french-wealth-tax/. Smoke Detectors to Become Obligatory http://www.french-property.com
In a study carried out by the French consumer watchdog the Institut National de la Consommation, six of out of eight popular smoke alarms on the French market did not work properly in tests they carried out on them. In the light of the report the French government has ordered trading standards officials to carry out their own tests. Similar tests also carried out by the consumer body Que Choisir in 2006 found that only three of the twelve smoke alarms they tested could be recommended for use, which resulted in some later being withdrawn from the market. All of this comes at a time when a new draft law is currently making its way through the French Parliament that proposes to make obligatory the installation of smoke detectors in all homes in France over a five year period... Read the entire article at http://www.french-property.com/news/build_renovation_france/safety_smoke_detectors. HOT PROPERTY PICKS: Contemplating Contemporary Each week French Property Insider features a range of properties which we believe are on the market at the time of writing. These properties are featured in order to give readers a sample of what is currently available and a working example of prices being asked in various regions of France and districts of Paris. This week we focus on opportunities for contemporary properties in newer districts of Paris.
Results of the Recent Notaires' Property Auction
Additional information on Les Ventes aux Enchères des Notaires can be found on the Web site at www.encheres-Paris.com. To read Schuyler Hoffman's article about the property auctions in Paris, click on: www.adrianleeds.com/frenchproperty/insider/members/content/articles/auctions1.html.
The
France Show 2010
Discover the magic of France by immersing yourself in the colors, the culture and the party atmosphere that is the France Show 2010 -- the UK's largest celebration of all that makes France such a special place. The French Property Exhibition brings together estate agents, developers, solicitors, banks and other professionals covering just about every aspect of buying your property in France. Whichever location has taken your fancy -- and suits your budget -- you're sure to find a suitable property. Always a hive of activity, the French property section offers everything from expert financial advice to innovative energy solutions to picture perfect barn conversions and great investment opportunities. With hundreds of different exhibitors ready to talk to you, this is simply the biggest and best French property exhibition available in the UK. More information is available at http://www.thefranceshow.com/default.aspx. Free tickets are available online at http://www.thefranceshow.com/pre-register.aspx.
Let us help you secure a mortgage in France at a competitive interest rate. Visit www.adrianleeds.com/frenchproperty/loan for more information or contact Loan@AdrianLeeds.com HELPFUL CONVERSIONS FOR REAL ESTATE 1 square meter = 10.7639104 square feet 1 hectare = 2.4710538 acres For more conversions, refer to: www.onlineconversion.com/ Parler Paris Après Midi: Next Meeting
www.adrianleeds.com/parlerparis/apresmidi.html The second Tuesday of every month, Parler Paris and French Property Insider readers gather at La Pierre du Marais for a drink and a "schmooze" --It's an opportunity to meet and chat with other like-minded people and a great way to make friends! Costs nothing except your drinks. Don't miss the next gathering Tuesday, January 12th, 2010 from 3 to 5 p.m. and every second Tuesday of the month (except August).
Managing Your French Property Insider Subscription is Easy!
It's easy... 1. Go to adrianleeds.com/frenchproperty/insider 2. Click on "Manage Subscription." You'll find it under the "Subscribers Only" section in the sidebar. 3. Enter your username and password. 4. On the Welcome Page, go to "Manage Your Account" and click on "Change Password/Edit Profile" 5. Once you've made the changes, scroll down to the bottom of the page and click on "Save Profile." Simple! Of course, we're always happy to help, so if you do need assistance, send an email to fpi@adrianleeds.com. To access password protected pages: click on any of the links on the left panel of the home page of FrenchPropertyInsider.com under "Subscriber's Only," then type in your personal username and password. Past issues of FPI are available
on the Web site. You will find the We wanted better guides, So we wrote them!
French Property Insider subscribers receive a discount of 10% off any uide and up to 25% off the entire purchase (if two or more guides are purchased at the same time). Here's how it works: 1. Click on special Web link we give you just for FPI subscribers. 2. Then order one or more
guide(s) and use the promotion 3. If you order two or more
guides, then an additional 15% will be Here is the special "coupon"
Web link just for you: SUBSCRIBE TO PARLER PARIS If you're not a regular reader of the Parler Paris daily e-letter, and would like to be, simply enter your e-mail address here (it's free!): www.adrianleeds.com/parlerparis Copyright 2011, Adrian
Leeds®
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