For Sale: Studio Apartment Overlooking Place du Bourg-Tibourg, Le Marais

La Rentrée: Back on Track with 'Beaucoup' Bits

French Property Insider
Volume VIII, Issue 33
August 26, 2010
Paris, France
adrianleeds.com/frenchproperty/insider

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Transfer Currency and Save Money in the Process...
with Moneycorp

When you're buying a holiday home or investment property overseas, trading your currency can be a crucial cost factor. 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 or anytime you transfer from one currency to another.

For more information, visit: moneycorpconvertor.html

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Bonjour French Property Insider Subscriber,

I'm back from vacation and so are many of our colleagues. Businesses are beginning to come back to life and with them will come new properties for sale and agents re-opening their doors. We don't expect to see much on the market until another couple of weeks have passed, however, one such property landed in my 'inbox' just this morning that is worth considering. Scroll all the way to the bottom to see the description and photos.

In addition, we have a bit of news for you today -- on the currency market from our currency specialist partners, Moneycorp; news from the Chambre de Notaires regarding tax incentives that are soon to be eliminated(!) and a reminder about the scams out there ready to take your money and run.

Read on...

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Currency Update from Moneycorp, August 25, 2010
Uncertainty of the British Sterling still rules...

According to the Bank of England's 'Broad effective exchange rate index' the last three months have seen the pound strengthen from 77.92 to 82.04, about 5.25%. In the same time, it has risen 10 cents against the U.S. dollar, six cents against the euro and a proportionally similar amount against the Australian, New Zealand and Canadian dollars. It is not entirely a coincidence that its recovery followed the election of a coalition government promising to balance the budget within five years.

Investors could not give a fig for party politics. They care not whether the ruling party's colors are red, blue, yellow or purple. They do care, though, whether it can match its spending to its tax revenues. The more a government borrows, in proportion to the size of its economy, the more they fret. They are much less worried today than they were before George Osborne delivered his 'emergency' budget on 22 June. It will hurt British residents and taxpayers in their purses and in their wallets but it has done wonders for the pound. Sterling is once again a credible currency.

Every economy, every currency, has its problems. America was hauling the world out of recession at the beginning of the year, but growth there has slowed and the dollar has suffered. The euro is struggling with the cost of rescuing Greece from its debt burden. Australia is threatened with a house price bubble that keeps inflating. They all have to contend with the uncertain trade-off between inflationary stimulus and deflationary austerity. Neither would be helpful if taken to extremes.

The pound has been rehabilitated by the new government's budget-balancing efforts. That is not to say it would still look good if those moves tipped the economy back into recession. Uncertainty still rules.

For more information about Moneycorp services, visit frenchproperty/loan/moneycorpconvertor.html

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Reminder from the Chambre de Notaires de Paris:
Loan Interest Deductions will Change or Be Eliminated...

The Government has announced a change in tax incentives for home ownership. The tax credit on the loan interest related to the acquisition of a principal residence will be eliminated in 2011. The tax credit remains applicable to conditions described below as it has not yet been officially abolished.

When people take out a loan for the acquisition or construction of their primary residence with a financial institution, they receive a tax credit equal to:

For existing homes: 40% of the amount of loan interest the first year of repayment and 20% of that amount for four years.

For new homes that meet standard BBC 2005 (low-energy building), a standard higher than that imposed by the legislation in force (RT 2005): 40% for the first seven years.

For other new housing if they are acquired or constructed: 30% the first year and 15% four years.

The period during which the borrower can benefit from the tax credit is calculated from date to date on the availability of funds.

If this is the construction of a dwelling or acquisition VEFA (sales with a future completion date), the borrower may request that either the relevant date of completion or delivery of housing is a starting point of the period.

The interests are taken into account in the limit of 3,750€ for a single person (7,500€ for a disabled person), 7500€ for a married or PACS (15,000€ if the spouse is disabled).

These amounts are increased by 500€ per dependent. The increase is only 250€ per parent for a child custody case alternately.

Borrowing costs (file, guarantees...) and insurance are not taken into account in calculating the tax credit.

Beware, there is a global cap on tax benefits under the Income Tax regulations.

For assistance with your French accounting and tax needs, we recommend:

Atisse
Contact: Sébastien Bacoup
http://www.atisse.com
Email: sbacoup@atisse.com
7 rue du Colonel Moll
75017 Paris
Phone: +33 (0) 1 45 72 26 62
Fax: +33 (0) 1 45 72 18 51

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The Keys are in the Mail. Really?
Beware of Paris Apartment Rental Scams...

Just this week one of our readers reported following up on an apartment advertised on CraigsList.com that turned out to be a 'scam' -- look closely and you'll see that the offered rate and quality of the apartment are just too good to be true!

There are still many such bogus properties being advertised that will gladly take your money and run, never to fulfill their promises. This past year our own Parler Paris Apartments was a victim to this kind of fraudulent activity. In response, we reported the perpetrators and posted this article: parlerparis/issues/pparis31-3-10.html

Please be reminded to do business only with legitimate firms or individuals you can trust. For rental apartments you can trust, visit Parler Paris Apartments

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Studio Apartment in Le Marais for Sale:
Rue des Mauvais Garçons, Place du Bourg Tibourg...

4th Arrondissement, Métro Hôtel de Ville, 24 square meters, 1st floor, no elevator, on tree-lined Place du Bourg Tibourg with eastern exposure, 2 large windows, high ceilings, to be renovated.

Asking Price 220,500€ plus Finders Fee

This apartment will not last more than a few hours! Seriously interested parties who are prepared to make a full price offer immediately can contact Mary Ellen at maryellen@adrianleeds.com

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A bientôt,

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Copyright 2011, Adrian Leeds®
Adrian Leeds Group, LLC, www.adrianleeds.com