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Prices, Processes and Parcels
(FOR SUBSCRIBERS ONLY) October 15, 2009 Bonjour French Property Insider Subscriber, Saturday I am speaking about "Property Investment in France" at the "Money Matters for Women" Conference here in Paris. The hour-long Powerpoint presentation will be made available to you next week...but that's no excuse for not attending! Any woman interested in growing her portfolio should take advantage of the opportunity. Scroll down for more information and register to attend before it's too late! The Chambre de Notaire has reported on sales and property prices for second quarter 2009 showing that bottom has hit and the market is on the rise, even if slowly. Read all about it in today's French Property Insider, with a full report, a table of the current figures and the download of their latest report in pdf format. Along with the report, there's a full explanation of the purchase process -- a must read if you've never been through it, so that when you do get ready to buy your first property, you'll know exactly what to expect. Keep this nearby as reference material. There's a new "salon" coming up for newly separated, divorced or widowed people -- and advice will be on hand for any who seek it. Scroll down for the details. And don't miss a variety of interesting articles from our sister publications...as usual. On the property front, we're taking a look at purchasing land and building your own home...an idea we don't think about often enough! While it may seem like a big undertaking, sometimes a renovation of an old property can be more daunting and more expensive. Read all about it in today's FPI. And of course, there are Hot Properties (or should I say "Hot Lots" to whet your property appetite. What more could you want? How about a new home in France? Well...we're here to help make that dream come true. A bientôt, Adrian Leeds
Volume VII, Issue 41, October 15, 2009 In this issue: * Second Quarter Sales Up Second
Quarter Paris Property Sales Recovering from the Crisis
Considering that the fall in prices was one of the most significant in history, it's based on sales contracts signed during the winter of 2008-2009, the lowest point in the economic crisis. Annually, prices in Paris are 7.1% lower than the previous year at an average price of 6060€ per square meter -- an average seen mid 2007. Some districts have suffered more than others -- above 10% in the 15th, 19th and 20th arrondissements. Central Paris suffered the least, with decreases as low as 2.2% in the 5th arrondissement. The highest prices are still to be found in the 6th arrondissement (9600€/m²), but the area also had the most serious decrease in prices with 5.4%. This is attributed to the large number of international buyers who at one time represented approximately 25% of all sales. The Notaires report that most sales activity is on lower priced properties and with first time buyers rather than existing owners. They further predict that these small signs of recovering will translate during third quarter in sales volume and that we have already reached the bottom of the market. Apartment Prices in Paris, Second Quarter 2009
The
Step by Step Purchase Process
Step 1. The Purchase Offer You find an apartment you wish to purchase (with financing) and the agent recommends you make an offer on the property. In the offer, you propose to the seller a certain price, any contingencies to the purchase and a limited amount of time within which to respond to the offer. Note: if you were to offer 'asking price,' the seller would be morally obligated to accept your offer and therefore you could virtually 'guarantee' the property would be held for you and no one else could 'out bid' your offer. There are contingencies which could be very important to the offer, such as appliances and furnishings which you would want to 'purchase' with the apartment and any other requirements the seller must be obligated to fulfill. Step 2. Choosing the Notaire The offer letter does not legally bind you to a purchase. If the seller accepts your offer, or if negotiations go back and forth until a 'deal' is set, then only until a "Promesse de Vente" or "Compromis de Vente" (purchase contract) is signed, is the contract binding. It is at this stage that a Notaire must be employed to represent you and a date of signature is set. It is highly recommended that each party choose his own Notaire for representation and it costs not a penny more as the Notaires share their commissions. We recommend working with a Notaire who speaks English and charges nothing extra for that. If you are working with a property consultant who is familiar with the documentation and process or a Notaire you fully trust, then a translation of these documents should not be necessary. Step 3. Signing the "Promesse de Vente" or "Compromis de Vente" (Purchase Contract) The Notaires will prepare the documentation for the signing of the Purchase Contract and you will be asked to provide a deposit held in escrow by the Notaire. This is normally 10% of the purchase price of the property, however, in today's market with prices escalating in central Paris, sellers will often agree to holding 5%, as long as the buyer is willing to default 10% should a default occur. At
this time, the seller must provide the required diagnostics: The buyer, seller, representing Notaires and agents convene for the actual signing. Once the "Promesse de Vente" or "Compromis de Vente" is signed, you have seven days within which a full retraction of the purchase can be made with no financial or legal ramifications. This is called the "cooling off period." For legal reasons, a registered letter must be sent to notify the Notaires and the deposit will be returned within 21 days of the retraction. Step 4. Preparing for the Final Signing of the Deed Financing the Property If you choose to finance the property, applications must be submitted to the banks. Non-resident buyers should work with banks and lending institutions that specialize in non-resident loans or with loan brokers that can provide the service. The timing is critical, as the Purchase Contract will dictate the deadlines to acquire a loan offer and an 10-day waiting period is mandatory before an offer can be accepted. One contingency of the Purchase Contract ("clause suspensive") regarding the loan is a protection for both the buyer and seller outlining the specific conditions of the loan. If a loan of a particular amount, at a particular rate, and particular term, as requested by the buyer, is not achievable, by proof of the bank's rejection of the applicant, then the buyer will not lose his deposit and the property will revert back to the seller. Meanwhile, the Notaire gathers specific information and prepares for the signing of the final deed. He must verify that the seller is the rightful owner of the property, that the description of the property is correct in regard to the city planning and easements what money may be owed on the property. Step 5. The Signing of the "Acte de Vente" (Final Deed) You have received your loan offer and you have accepted it 10 days later. The day comes to sign your Deed of Sale. The Notaire's dossier is complete and checks are prepared by you for the balance of the purchase responsibility (down payment, taxes and fees), by the lending bank for the payment to the seller and by the Notaires to pay the various commissions and fees. Once again the buyer, seller, representing Notaires and agents convene for the actual signing. The keys are ready to transfer to you, the buyer, in exchange for the check of payment to the seller. Step 6. The Final Payment and Deed of Sale The Notaire hands over a check to the seller in full payment for the property and an "Attestation" of the sale to you, the buyer. The documentation will then be submitted to the Chambre de Notaires for official recording and processing. It may take six months or more before you receive the final recorded deed and normally there is a small refund of overpayment of fees, as the assessment at the time of closing is just an estimate and always greater than the final amount officially due.
* Property Finding Services
"Your Pied-à-Terre in Paris: Own It All or Just a Fraction" Our very own Search Consultant, Mary Ellen Gallagher, will be on the call with me (Adrian Leeds), helping you decide what's best for your Paris investment portfolio and what fits your needs and desires best...a pied-à-terre of your own or a fraction of one! Subscribe or renew your subscription now!...for only $29 for 50 issues plus call in on October 18th to learn more about the differences between owning your own apartment or a fraction of one! http://www.adrianleeds.com/frenchproperty/insider/subscribetofpi.html or for more information go to http://adrianleeds.com/frenchproperty/insider Money
Matters for Women Conference
Come hear Adrian Leeds enlighten you on "Property Investment in France" 2 p.m. to 3:15 p.m.! MONEY MATTERS FOR WOMEN is a half-day conference held in Paris, France for today’s global woman who wants to understand her current financial situation, plan intelligently and take proactive steps in managing her money. The conference features: -
A dynamic keynote speaker This conference recognizes that women have unique financial goals and challenges which must be addressed. So invite your daughter, friend or neighbor to share in this empowering experience andwalk away with more confidence and the tools to own your financial uture. The Money Matters for Women 2009 conference is presented by WICE and hosted by The American University of Paris. Special thanks to Smart Women Products for their continued support of this conference.For more information and to register, visit http://www.moneymattersforwomen.org. Salon Nouveau Départ (Novembre 7 - 8, 2009)
Espace
Champeret To review the program in detail, visit http://www.nouveaudepart.fr. To acquire free invitations, visit the Centre d'Information de la Chambre des Notaires de Paris at 1, boulevard de Sébastopol, Paris 1st. Fractional Property Offerings from French Property Fractional 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 Buying a Plot of Land and Building a Home in France – Your Options http://www.renchentree.com.com/ Permissions The majority of land for sale does come with planning permissions, and even if it does not have it is often sold with the view that you will be applying for a certificat d'urbanism. The certificat d'urbanism gives permission for property to be built on the land. If the land does not have planning permission, you should visit the mairie to find out whether or not it would be worthwhile to apply for a certificat d'urbanism. If so, the mairie will be able to help you obtain and fill in the paperwork. They will also be able to check that your chosen plot can be easily connected to utility services, such as the power grid, water board, local sewage works and the telephone line. Most land is sold with a certificat d'urbanism. You will need a permis de construire for all new building work. To apply for this, you will need plans, drawings and maps of what you propose to do with the land. The mairie can assist with this. The permis de construire gives you permission to build your chosen property. Some builders do offer to obtain your permis de construire, but this is a service in order to secure work and so ties you to one person and affects intellectual property rights. Legally, the builders own the rights to what they have made/created so they can charge you if you get planning permission and then do not use them for the building job. If you are buying land with planning permission, check what it covers so that you know whether the type of house you want will be allowed to be built. Check what rights others have over your land, e.g. is it on a public footpath? Time spent checking all these factors will save you from being caught out further down the line... Read the entire article at http://www.frenchentree.com/france-newbuild/DisplayArticle.asp?ID=35667.
The Moneycorp MasterCard Prepaid Card
There is no line of credit with the card so you can only spend what you have loaded - helping you to stay in control of your money. You can use your Moneycorp Prepaid Card to make purchases wherever the MasterCard Acceptance Mark is displayed– that’s over 26 million locations including 1.2 million ATMs worldwide. It’s easy to manage your money with the Moneycorp Prepaid Card and account. 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 here: Helpful Hints on House Renovations Here are a few tips: 1.Use natural materials wherever possible. This means, for example, chalk and sand for internal and external rendering; never cement. Chalk and sand rendering is flexible and allows the walls to breath. 2.If at all possible avoid dry lining with plasterboard, particularly downstairs. This prevents the walls from breathing. 3.Old tiles on the floor can be very appealing but they may be damp and difficult to keep clean. Be prepared to take them up and relay on a damp proof course and insulation. 4.Always specify oak for windows, doors and staircases. It looks better and lasts very much longer. It is not expensive in the Allier. 5.Always specify double glazing. 6.Think ahead to what eventually you want the house to look like even if you haven’t got the money to do it all at once. 7.Oil, electricity and gaz(s) are getting more and more expensive and there are good government incentives for using wood as a heating fuel, solar panels, wind power and other renewable energy sources. If you are going to use renewable sources of energy you need to plan carefully. Solar panels, for example, may require a separate hot water tank of its own and if you install them as an afterthought you may have to undo some of the plumbing you have already done... Read the entire article at http://www.propertyfrench.com/Articles/11984.aspx. 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.
Parler Paris 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 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 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 heir best for your 100% guaranteed satisfaction. SPOTLIGHT APARTMENT(S): Ask About the Last Minute Fall Special: 10% to 15% Discount off Advertised Rental Rates!... Le Provençal Rue
Charlot
www.adrianleeds.com/parlerparis/apartments/rentals/provencal.html. Reserve now! Visit www.adrianleeds.com/parlerparis/apartments or email:apartments@adrianleeds.com. Website Design for Gites and Rentals
This is the first of a series of entries, one to be released each week for the next few weeks, that has a very clear goal – to enable anyone to make their own website, at minimal cost. Although the example I will use is a gite / holiday rental website the exact same principles apply to any business, so whatever your need for a website you will hopefully find it useful. The general plan is is to show a different stage in the process each week in such a way that you can’t go wrong. I will give detailed instructions and when necessary provide the code that you need and tell you what to do with it! Because keeping things cheap is one of our goals we are going to use free tools whenever possible (which is pretty much always). I’ll tell you where to find the tools and what to do with them!... Read the entire article at http://www.francethisway.com/wp/website-design-for-gites-1/2009/07/. HOT PROPERTY PICKS: Longing Look at Land 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 land with building opportunities, found throughout France.
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:
Luxury
Property Show Announced * Luxury Real Estate Trade Fair Loves Paris in the Autumn *
On the 27th, 28th and 29th of November 2009 Prestige-Paris will celebrate its third birthday with the assistance of France Convention, a specialist in niche and luxury trade fairs. This year’s gathering will be required both to meet the visitors’ very demanding expectations and outdo last year’s exceptionally successful event. The recent recession has failed to affect the luxury sector as much as the rest of the economy, in fact the latest figures have revealed that the Parisian real estate market has improved. It seems that the most beautiful and luxurious homes never fail to find a buyer, a thought that will encourage participants in this most prestigious property exhibition.
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, November 17th, 2009 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
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