New French Trust Laws Largest Development in a Decade
Compiled by Schuyler Hoffman

France could benefit from a massive influx of foreign property investment after its government decided to implement the country's first ever trust law.

A report on Overseas Property Professional has explained that the new guidelines mean that foreign pension trustees will now be allowed to invest in leaseback property within the country.

Furthermore, wealthy investors can now avoid heavy taxation when using offshore funds for property transactions.

David Anderson, of law and tax firm Sykes Anderson, stated that this could represent one of the largest developments in overseas property of the last ten years.

The new legislation could allow foreign pension trustees to invest in French leaseback property for the first time, as well as encouraging high net worth individuals to move offshore funds into the property market without major tax penalties.

Before the law came into effect on March 2, France did not recognize the concept of a trust or fiduciary. Trusts are commonly used in other countries as a tax-efficient way of investing in property.

As well as passing the trust law, France has also signed tax information exchange agreements with a number of tax havens including Jersey, Guernsey, the Isle of Man, the British Virgin Islands and the Cayman Islands.

“This will allow investors based in these locations to buy property in France without the previous 3% gross annual tax penalty,” said Anderson. “This and the absence of a trust law were two major obstacles for foreign investors so it is an amazing turnaround.

“Trusts will be able to buy residential property that no one’s been able to invest in for the last 50 years, and key agricultural property of the kind that only comes onto to the market every two or three generations.”

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2 Different Homes Under 1 Factory Roof
By LIZA FOREMAN

http://www.nytimes.com/

PARIS — When Josephine Rooney Duval, an architect and property scout, received a tip in 2002 that a 100-year-old shoe factory stood empty in the 14th Arrondissement, she decided it was a place worth keeping for herself.

For about six years a plumber had been using the dilapidated warehouse, with broken windows and a muddy floor, to dump broken toilet seats and rusting pipes.

But within its 320 square meters, or nearly 3,500 square feet, Mrs. Rooney Duval saw the architectural equivalent of a carte blanche in a city filled with traditional Haussmann residences and what she calls their “flat” interiors. “I could see the possibility of working in three dimensions, creating small levels from which you can look into big levels so that you always have exciting views into other rooms,” she said.

Mrs. Rooney Duval and her husband, the architect Guy Duval, formed a kind of cooperative with Jean-Claude and Patricia Leroy to buy the wooden-framed warehouse for €750,000, or the equivalent of about $800,000 at the time.

Mrs. Leroy, whose pen name is Patricia le Roy, wrote “The Angels of Russia,” the first e-book to be nominated for the prestigious Man Booker Prize in Britain. Mr. Leroy, who owned a travel agency, died in 2009.

It took 18 months to close the deal and 30 months to renovate the property, with each couple investing €300,000 in the work.

The 14th Arrondissement is a residential area that includes the Montparnasse intercity train station and office tower and many artists’ ateliers. “Paris once had plenty of loft-style apartments, but these are mostly located in areas like the 10th Arrondissement,” said Cillian James Fahey, a real estate agent based in the city. In the current market, he said, a good property in the 14th would probably be worth €7,000 to €8,500 a square meter.

When they began the renovations, the builder initially refused to follow Mrs. Rooney Duval’s plans to divide the building into two 160-square-meter residences, one for each couple. “He wasn’t convinced that they wouldn’t fall down. Builders are not used to wood here, and I am, after all, a woman,” said Mrs. Rooney Duval, who has worked in architecture in Paris for 30 years...

Read the entire article at http://www.nytimes.com/2010/03/19/greathomesanddestinations/19iht-reshoe.html.

Photo credit: Valerio Mezzanotti for the International Herald Tribune.

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A Place in The Sun Property Exhibition This Weekend!

A Place in the Sun Live features thousands of overseas properties for sale, by hundreds of exhibitors from more than 40 countries worldwide. And with homes from less than £20,000 to over £1 million, there really is something to suit almost every taste - and budget.

The next A Place in the Sun Live takes place at Earls Court, London on 26th - 28th March 2010.

With everything you need all under one roof, you'll have a unique opportunity to compare properties and talk to the agents and developers face-to-face, all in one place!

Whether you are in the market for a great investment property, idyllic holiday home, a place to retire to or a permanent residence abroad, A Place in the Sun Live will bring you a step closer to owning your place in the sun. There's everything from new and off-plan apartments and developments, houses, villas and unique character properties.Full details and tickets available at www.aplaceinthesun.com/visitorinfo.

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www.adrianleeds.com/frenchproperty/fractional

If you are interested in traditional fractional ownership properties currently offered by ourFractional ownership partners, see below:

Paris: LE PALACE DES VOSGES	Paris: LE NOTRE DAME
Paris: LE ROYAL du MARAIS	Paris: L'ABBAYE LUTÈCE
Paris: CHEZ LA TOUR	Paris: La Résidence Luxembourg
Paris: LE PETIT TRESOR	Languedoc-Roussillon: MAISON BLEUE
Paris: PARIS RESIDENCE CLUB	Languedoc-Roussillon: NOTRE MAISON DANS TOULOUGES

Readers of FPI can take a look at special offers for Le Palace des Vosges, Le Petit Trésor and Chez La Tour at adrianleeds.com/frenchproperty/fractional.

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The Future of Property Prices in France

http://ccclsanaa.com/

The property market generally in Europe appears to be stabilizing compared to the US market which appears to be in a bit of a crisis due to the sub-prime lending market. We have seen a marked slowdown in the Spanish property market and the UK market seems to have lost most of its steam now as well. This is likely to be pervasive over the next few years as unlike in 2004 when everyone predicted the same thing; today interest rates are that much higher as are property prices and the uptake of mortgages in the UK are also slowing while house repossessions are increasing. The effect of this is likely to be a stabilizing property market with minimal capital growth and in some areas of the UK even price falls. Getting a mortgage in the US, Spain and the UK has always been relatively easy than when compared to France thus ensuring that a sub-prime crisis like we are witnessing in the US is highly unlikely in France. French rules on mortgage lending dictate that the mortgage applicant must be earning at least three times their monthly mortgage outgoings after taking into account all other loans. This means that although people are refused finance more often in France and the procedure of gaining a loan can often feel protracted it does actually benefit the economy and its property owners in the long run.

The new president Nicolas Sarkozy has clearly stated his wish to make the French economy achieve its full potential where it has failed to do so in the past. He also wishes to turn France into a nation of home-owners much like Thatcher did during her time in power in Britain. In France only 57% of the population currently own their own home compared to 70% in Britain and an impressive 84% in Spain showing there is plenty of room for growth here. He intends to achieve his dream by implementing a number of economic and tax reforms which are likely to encourage trade and increase Economic activity. These changes include but are not limited to the following-

1) Extending the 35 hour working week

2) Significantly reducing the amount of inheritance tax and even making spouses exempt

3) Allowing mortgage interest payments on your main home to be offset against tax

4) A shift away from direct taxation (such as income tax) to indirect taxes (such as VAT and environmental tax) with the result being an overall tax reduction of 4%...

Read the entire article at http://ccclsanaa.com/property-in-france/the-future-of-property-prices-in-france/.

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Take the Risk Out of Currency Conversion

If you’re buying a holiday home or investment property overseas, when you trade your currency is crucial. The euro exchange rate is constantly fluctuating, so trading at the right time will mean your money goes a lot further.

Adrian Leeds Group LLC and Moneycorp are working together to ensure you make the most of your Dollar or Sterling when buying a property in France.

For the latest exchange rate use our currency converter at http://www.adrianleeds.com/frenchproperty/loan/moneycorpconvertor and learn more about moneycorp ere:
http://www.moneycorp.com/affiliates/microsite/index.cfm?agentid=10168408.

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Five Different Ways to Finance Your French Property

http://www.all-about-finance.info/

There are different ways to find cash for a property purchase. If you are among those who want to buy a property in France but find it difficult to get the finances, the following tips may help you.

- Apart from selling your own property, the first thing you can do is to rent out your property so that you can take a French mortgage. The rental income of your own property will help you pay the mortgage off for the new property.

- If you do not own a property, a solution is to take a French mortgage but the difference lies in the fact that you will repay it from your salary.

- The third solution you can exploit is taking a mortgage where you live. It is probably the most standard and usual way to buy a property in other countries. However, the rates are usually higher than those for French mortgages.

- If you are property owner in another country, you can also remortgage or get a mortgage on your property. This will enable you to release enough equity for your French purchase because the property prices in France are still cheaper compared to other countries.

- The last alternative is an equity release. This means unlocking some of the value in your home by taking out an equity release plan, enabling you to make the most of your property to generate the cash when you need it...

Read the entire article at http://www.all-about-finance.info/?p=9118.

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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-hourconsultation 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.

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Parler Paris Apartments

http://www.adrianleeds.com/parlerparis/apartments

Welcome to your home in Paris. Home is how you will feel in 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 the quality 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 great team 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 their best for your 100%

Book Your Parler Paris Apartments Stay this March, April or May and Pocket 15%!

As a gift to Parler Paris readers, we're making a very special springtime offering.

Book any Parler Paris Apartment now and start your stay in the months of March, April or May, and you can count an extra 15% off the price of the rental in your pocket. In other words, we're taking 15% off the price during the most glorious season in Paris when anyone who is anyone wants to be here, just to say thank you for being such loyal readers.

Visit http://www.adrianleeds.com/parlerparis/apartments. To reserve any of our well located and luxurious Parler Paris Apartments, go to http://www.adrianleeds.com/parlerparis/apartments/request_form.php and make your request, or for more information, email: apartments@adrianleeds.com.

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Buying Tips for France - Part 2

http://www.estate-building.global-article.ws/

11. Buying land in France

Any purchase of a French property covering more than a hectare (2.47 acres) has to be referred to the Socit dAmnagement Foncier et dEtablissement Rural (SAFER), a body which has the right to pre-empt the sale if it feels that the property should remain in agricultural use; the notaire handling the sale will notify SAFER of the impending sale. SAFER rarely exercises its right, but if it does object to the sale, any agreement is null and void, so prepare yourself for disappointment; you will however be entitled to the return of your deposit.

12. Buying French property near a listed building

If your dream home is near a listed building or site, there may be restrictions on the extent to which it can be altered or renovated (in some cases you may be told what materials and colors you can use). Check with the local Mairie. An organization called Bâtiments de France is responsible for issuing and enforcing restrictions; each Département has its own Architecte des Bâtiments de France, or ABF.

13. French property and planning permission

Planning permission (un permis de construire) is needed to make any external alterations to a French property. If you are planning to buy a French home and alter it in this way, ensure that a conditional clause (clause suspensive) is included in the preliminary sales contract (compromis de vente), stating that the purchase is subject to obtaining planning and building permission; this way, if your planning application is turned down, the sale becomes null and void and your deposit will be returned.

14. Buying a French home with a septic tank

Most homes in rural France have individual sewerage systems (fosse septique). Have an approved specialist carry out an inspection before you agree to buy, and get a cost estimate for any necessary works. According to French legislation, most homes in French village centers were supposed to be connected to mains drainage (tout lgout) by the end of 2005, with owners paying connection charges; check with the vendor whether this has happened, and if not, ask at the Mairie to find out if this applies to the property you are considering.

15. Owning a French property with a swimming pool

Installing a pool increases a property's rental potential and letting rates; however, pools need regular cleaning and maintenance, which will add to the running costs of your French home. Planning permission is needed to install a pool of more than 20 square metres, and all new pools and existing pools in rented properties must have an approved safety system; all other pools will have to be fitted with the same by January 2006.

16. Building your own home in France

Buying a plot and having a home built to spec is popular with the French. If you want to follow their lead, you will need to obtain a certificat d'urbanisme (confirming that the land may be built on) and planning permission (un permis de construire). Be prepared to supervise the construction, or hire an architect to do it for you. Building costs vary from 500 to 1,500 per square metre, depending on design and build quality.

17. Buying a building plot in France

Known as terrains batir or terrains constructibles, French building plots are usually 1,000 to 3,000 square metres, and cost between 10,000 and 40,000; naturally, prices vary according to location, and whether mains services are connected. They can be bought from estate agents, direct from the owner, or from builders (insist on separate contracts if you opt for a package deal from a builder)...

Read the entire article athttp://www.estate-building.global-article.ws/buying-tips.html.

Editor's Note: Read part one in last week's FPI at http://www.adrianleeds.com/frenchproperty/insider/members/content/pastissues/FPI_March_18_2010.html.

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HOT PROPERTY PICKS: Long Lofty Looks

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 loft properties located throughout Paris.

	*** Paris, 11th: Two-Bedroom, approx. 67m² Atypical loft apartment, spacious and original, in the ground floor and basement of a 19th century building. The loft apartment consists in one main room including a living room with a office area, a dining space and an open kitchen. Two bedroom areas (one on a mezzanine level). On the lower level, one nice bathroom with bathtub and separated toilet, one large dressing, small laundry room, and an extra room with a piano. Bright and quiet, nice open spaces, close to facilities. Asking Price: € 550 000 + 2% finders fee
	*** Paris, 11th: Three-Bedroom, approx. 188m² Close to the businesses and commerce on rue Oberkampf. Located in a beautiful old building on the rez-de-chaussée. Large living room with overly large windows allowing a lot of natural light. Large equipped kitchen, three bedrooms, two bathrooms and two wc, closet space. Southwest facing and in excellent condition. Asking Price:€ 995 000 + 2% finders fee
	*** Paris, 10th: Three-Bedroom, approx. 170m² Located very near the Canal Saint Martin. An exception loft on the third floor, with an elevator. Created in an former, old industrial space. Consists of three bedrooms, an open space of 50m², master bedroom, two bathrooms, and large walk-in closet of 15m². Asking Price:€ 1 050 000 + 2% finders fee
	*** Paris, 20th: Three-Bedroom, approx. 197m² This unique loft space was created by joining an artists space, a house, and a covered terrace. Not only is the floor space large, it also has height ceilings and exposed beams. The old courtyard from the house has been covered in glass and transformed into a winter garden and second living room. The kitchen is large. The bathrooms are large. There is a large mezzanine that includes a child's room. The whole design creates a calm and naturally lit space. In the quarter Ménilmontant. Asking Price: € 1 080 000 + 2.5% finder's fee

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WHY: Wally-Hermes Yachts Unveils the Ultra Yacht
Compiled by Schuyler Hoffman

Living the luxurious life that only self-sufficiency can provide is what WHY – Wally-Hermes Yachts is claiming. Created by French luxury brand Hermes and Monaco based yacht maker Wally, WHY is a sustainable yacht that will definitely provide a new lifestyle of living on the seas. The yacht has numerous features like a seawater swimming pool of 25 meters long.

With a total living area of 3400m2, it is 58m long and 38m wide. There are three decks connected by both stairs and an elevator, a 25m pool, a spa, helipad, a sauna, gym and massage room, a 130m promenade, a music room, a reading room, a dining room, a cinema, sun-decks galore, terraces, lounges, and much more.

The main bedroom suite is 200m2, and features a 25m deck and terrace. There are also five guest suites.

It is also a “green” yacht with 900m2 of solar panels producing a daily output of 500 kW. This amounts to 20-30% fuel savings and 40–50% electricity consumption on board.

This "floating island" is expected to have a price tag of $160 million. A full sized model of the WHY was displayed, at the 2010 Abu Dhabi Yacht Show. However, it is currently unclear exactly when the yacht will be completed and ready for sale.

More "photos" are available at http://www.mbworld.org/forums/off-topic/341734-why-yacht-160-million-yacht-wally-hermes.html.

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The Next Notaires' Property Auction - April 6, 2010

Notaires de Paris
Place du Châtelet
12 avenue Victoria
Paris 1st

 

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.frenchpropertyinsider.com/

>

	The following properties will be auctioned off April 6, 2010:
	2010-08-01 2 Rooms 28m² 31 boulevard de Reuilly 75012 - PARIS 12eme Starting Bid: 99 700,00 € Deposit: 9 970,00 €
	2010-08-03 Studio 25m² 42 rue Saint-André des Arts 75006 - PARIS 6eme Starting Bid: 150 000,00 € Deposit: 30 000,00 €
	2010-08-04 Studio 29m² 59 bis rue Olivier Métra 75020 - PARIS 20eme Starting Bid: 65 000,00 € Deposit: 13 000,00 €
	2010-07-02 2 Rooms 33m² 39 rue Alphonse Penaud 75020 - PARIS 20eme Starting Bid: 80 000,00 € Deposit: 8 000,00 €

Editor's Note: If you look at the properties on the Notaire's site (www.encheres-paris.com), when you click on the information for a particular property there is also a link to Google Maps to show you exactly where the property is located.

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SEEKING A MORTGAGE IN FRANCE?

When you make a purchase as important as a piece of real estate in a foreign country, you ant to know that you can trust the people you are dealing with. Adrian Leeds has developed a network of professionals that meet only the highest of standards. With the expertise and experience of Adrian and her team, you can depend on getting the best advice and support to feel completely confident that you are making an informed investment decision.

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

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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/

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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, April 13th, 2010 from 3 to 5 p.m. and every second Tuesday of the month (except August).

 

 

 

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Managing Your French Property Insider Subscription is Easy!

We receive many emails from French Property Insider Subscribers who want to change their email address, or update personal information. But did you know that you can make these changes yourself?

It's easy...

1. Go to www.adrianleeds.com/frenchpropertyinsider

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.

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THINGS YOU NEED TO KNOW

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
"Past Issues" link on the left under "Subscribers Only" or by going to
www.adrianleeds.com/frenchproperty/insider/membersTo receive your free French Leaseback Report or the Paris Property
Report, click on
www.adrianleeds.com/frenchproperty/insider/members

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We wanted better guides, So we wrote them!

Insider Paris Guides are written for people who love the City of Light. You'll get a Paris insider perspective on Restaurants... Making a Life... Black Culture... Expat Writers...and the newest guide, Practical Paris!

French Property Insider subscribers receive a discount of 10% off any guide 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
code "ED762." This promotion code gives you 10% off your total
order.

3. If you order two or more guides, then an additional 15% will be
taken off automatically. There is no promotion code needed.

Here is the special "coupon" Web link just for you:
www.insiderparisguides.com/offer

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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.parlerparis.com

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