5 years old

Normally, I am not a great lover of modern French properties, preferring the older style character houses. From time to time, something a bit different comes along and challenges your thoughts.

Very recently, I visited a 5 year old bungalow, on the edge of Sauzé Vaussais. There is a bit of extra character in this bungalow, so often missing from other modern properties. Quality oak flooring and tasteful tiling has been used in many areas of the property. The living rooms are much larger than in the average pavillon. The oil tank is buried in the garden, and the property is also on mains drainage. The garden benefits from open views across open countryside, (last year sunflower fields). With the shops, bars and restaurants within walking distance, this property will appeal to a wide selection of people. Other facilities such as schools & a supermarket are available within the town. All in all, good value at 222,600 Euros.

Peter Elias (Agent Commercial)

http://www.allez-francais.com/details.php?pty_id=1146

Sterling on the up

With the UK election finally over and a decision made as to who will form the British Government finalised, the relief within the financial markets was very evident.
Mervyn King delivered the Bank of England’s quarterly Inflation report and made it very clear that UK interest rates will stay low for a considerable time to come due to the troubled rimes ahead. His boost for the new government was that he is enthusiastic about plans to start reducing the budget deficit as soon as possible.
The Bank of England is clearly concerned that a delay in action would risk the UK losing its Triple A credit rating and that would have cost repercussions for the Bank and the Treasury.
Whilst Sterling slipped a bit, the Euro also remained weak and there are fears that this decline could increase in pace in line with market scepticism over the effectiveness of the €uro rescue plan funding.
Some analysts are predicting a further fall of 5 or 6 % in the Euro’s value against the US Dollar, although the UK government will have to start proving itself if Sterling is to keep pace.
The Sterling - Euro exchange rate is hitting the highest levels it has achieved since June 2009 and a break above 1.19 € would offer the best levels since the collapse that started with the fall of Lehman Brothers in October 2008. That is fantastic news for anyone moving to Europe, although it is not such great news for those with Euros to sell. However, those sellers have had 20 months of advantageous rates and it now looks like it is the turn of the buyers.
Peter Elias (Agent Commercial)http://www.allez-francais.com

Where now for currencies ?

So we head into the weekend not knowing who will be the next resident of 10 Downing Street, not knowing whether the €110 billion bailout for Greece will be enough, not knowing whether one of the other Mediterranean countries is preparing its bid for EU support and not knowing whether we will get rain or not, although that last one is apparently easier to predict.

What we do know is that the Pound is still offering some of the best levels for Sterling sellers in 9 Months, that the Euro is the cheapest it has been for US Dollar sellers since March 2009 and that the Australasian currencies may well weaken a tad in the days ahead if safe haven buying is all the rage and whilst the Canadian Dollar is still looking good now, it may well weaken as oil comes under pressure. Sadly for those with Sterling in their pockets, even if the Aussie and Kiwi Dollars lose strength, the £ is likely to lose strength faster because the UK economies is far more reliant on and tied to the European Union countries.

It’s a very cloudy view both weather-wise and economy-wise right now and risk management is the key to being currency-wise.

If you thought the recession was behind us, I am sorry to say, it may not be dead and gone just yet. The problem lies in the nature of the credit markets. Bank A may lend to Bank B who lends to Bank C but Bank C may also be lending to Bank A and Bank B may be heavily indebted to Bank D as well. This is also true for countries and the whole world wide web of debt hangs on the premise that each is capable of repaying everyone else. If one bank or country fails to keep its part of the bargain, the whole pack of cards is in danger of collapse.

Peter Elias Agent Commercial www.allez-francais.com

Uncertain markets

May Bank Holiday weekend – and what confusion on the markets.

With the prospect of a “hung parliament” in the UK and the European crisis elsewhere, the currency markets don’t know which way to go.

A hung parliament would bring with it uncertainty for the markets (equities & the £), so the week ahead will define the way forward.

In Euroland the so-called PIGS (Portugal, Italy, Greece & Spain), are still in big trouble, especially the latter two. Riots on May Day In Greece in response to the austerity measures required as part of their rescue package, whilst in Spain, they have just announced unemployment at over 20%.

If there is a decisive result in the UK elections, I would expect Sterling to surge ahead in the weeks ahead, perhaps towards 1.20 and even 1.25, which would be a great buying opportunity for UK buyers looking to acquire a property here in France.

Peter Elias http://www.allez-francais.com/

Another moulin

Last week I wrote about three recent additions to our portfolio - all of which were water mills. Well now we have another !

This one is a large 5 bed mill, with a fabulous mill room, scope to enlarge even more, and is in great condition.

The very attractive gardens are bordered by the water course, and there is a really private sun terrace and salt water swimming pool installed.

Definitely worthy of an early inspection ...

Peter Elias http://www.allez-francais.com/

Water Mills

A bit like buses, you wait ages for one to come along, and then three arrive together !

That is exactly what has happened in recent days with an old favourite, the moulin d'eau. One example is a beautiful restored watermill dating back to the 17th century retaining original features in a peaceful secluded yet secure setting, with land totalling 2,550m². Offering approximately 260m² habitable full details can be found via this link :-

http://www.allez-francais.com/details.php?pty_id=932

Nearer to facilities is another mill, where the owners have tapped into the water course to provide a form of geothermic heating for the property :-

http://www.allez-francais.com/details.php?pty_id=1133

Completely in the country, but again convenient for commerce, is a large partially renovated mill, offering tremendous potential :-

http://www.allez-francais.com/details.php?pty_id=1044

Because river management is much more pro-active in France than in the UK, there are rarely flooding problems. I can highly recommend visits to these lovely waterside properties, where you can relax and enjoy the laid-back French lifestyle.

Bonne chance !

Peter Elias (Agent Commercial)

http://www.allez-francais.com/

QROPS, QNUPS & a Seminar

One of the hardest parts of becoming an ex-Pat is knowing where to get the best financial advice to ensure that your decision is sustainable. Since our business was established in 2001, we have been searching for such a business partner, and we have now concluded negotiations with one of the leading International Independent Financial advisers.

They now have offices in Niort (79), so are convenient for most readers of this magazine. Anyone who would like to receive advice on their financial situation, either before or after they have moved to France is welcome to contact us using the details at the end of this article for further information.

Protecting assets from tax during your lifetime and on death is an important issue for many expatriates. Particularly if you are unsure of the exact regime for a country, such as France, with it’s complex succession rules. They can provide and advise on a comprehensive range of asset protection structures which can help you – a) Minimise your tax liabilities during your life and in the event of your death, b) Pass assets to your heirs in an efficient manner, c) Control your assets after your death .

You will probably need to change your approach to investment management to ensure that your wealth is invested in a tax efficient manner reflecting the taxes of the country where you live. Within tax efficient vehicles, it is possible to work closely with you to establish your investment strategy.. The strategy will be based on diversifying your holdings and the asset types you invest in, as this will assist in reducing risk and preserving your wealth in real terms over the longer term.

To introduce you to these ideas, a free invitation based seminar is planned for May 6th (morning), entitled “Tax Mitigation, Pensions and Wealth Preservation”. The seminar will explore the tax mitigation and wealth preservation opportunities available to UK nationals who are currently tax resident overseas, whether they should become non-UK tax residents, and advice for those who may repatriate back to the UK in the future. The agenda covers private wealth and UK pensions, taking the opportunity to explore tax and investment strategies for preserving your capital, improving your investment income and maximising the value of your UK private pension funds in France. Certainly if you have over £100,000 of savings/investments and/or pension funds totalling over £100,000, you should reserve your place at this seminar, but it is suitable for most ex-Pats.

Of special interest are 2 recent pension schemes which I will touch on briefly below. Qualifying Recognised Overseas Pension Schemes (QROPS) are pension schemes located in a jurisdiction outside the UK and which HM Revenue & Customs (HMRC) has approved to receive transfers from UK registered pension funds. They provide many benefits for British expatriate retirees. Most UK private pension funds can be transferred provided you have not yet bought an annuity or, if it is a Final Salary Scheme, that you have not commenced taking your pension.

On the 15th February 2010, a new UK HM Revenue & Customs (HMRC) statutory instrument came into force, which creates significant opportunities for British expatriates to save local taxes in the country in which they are tax resident as well as UK inheritance tax (IHT). The UK legislation created a new type of trust known as Qualifying Non-UK Pension Schemes (QNUPS). The tax rules for both of these pension schemes are generally more favourable than other investment structures.

Some British expatriates will return to the UK at some point, whether this is to be closer to family or on the death of a spouse or a partner. Most defer seeking tax and financial advice until they have actually returned to the UK, however the key to effective tax planning is to plan early before repatriating. This way you may be able to structure your assets in a far more tax efficient environment than you could achieve by waiting until you have arrived back in the UK.

Between now and the next issue of Impressions a General Election will be held in the UK. At the time of writing many experts are predicting a hung parliament, which would not be good news for the UK economy or for the £. Which leads me nicely on for a word about currencies. The graph below shows the 90 day movement :

Peter Elias (Agent Commercial) http://www.allez-francais.com/
Tel 05 49 27 01 22 or e-mail allez-francais@wanadoo.fr for details of the seminar or any other information contained in this article.