New rules for property sales

With effect from 1st January 2011, any advertising of a property for sale must specify the “DPE or Diagnostic de Performance Energetique” (energy efficiency) report. We are working with our vendors to arrange for these energy ratings to be displayed on our property details.

Since November 2006 all new homes and buildings for sale have been required to undergo an energy performance evaluation (an energy performance diagnostic, or DPE), and receive an energy performance certificate.

The certificate, rather like those applied to washing machines and fridges, indicates both the level of energy consumption and the greenhouse gas emission level, on a scale of A to G, with G being least efficient and the highest emissions.

The full diagnostic report is accompanied with various recommendations for improving the building’s energy efficiency.

France No 1 again

Once again France comes out top in the quality of life index. According to http://www.uswitch.com/

France enjoys the earliest retirement age (joint with Poland), spends the most on healthcare (11% of GDP) and has the longest life expectancy in Europe. Its workers also benefit from 36 days holiday a year, compared with just 28 in the UK, and it comes only behind Spain and Italy for hours of sunshine.

The UK came 9th out of the 10 European countries in the Index, thanks to high living costs, below average government spending on health and education, short holidays and late retirement. The Index shows that people in France enjoy the highest quality of life, closely followed by Spain.

People in the UK pay the highest prices for food and diesel, yet the government spends below the European average (as a percentage of GDP) on health and education. We also work longer hours, retire later, receive less annual leave than most of our European counterparts and get less sunshine along the way - not to mention the fact that we can expect to die two years younger than our French counterparts.

Ireland and the UK trailed in the last 2 places. Isn't it time for you to make that move and join us over here in France ?

Peter Elias (Agent Commercial) http://www.allez-francais.com/

U turn on Taxation of Capital Gains

Currently Capital Gains in relation to immovable property (except the main residence) are taxed in France at a rate of 16% plus 12.1% social charges. These rates apply after deduction of the 10% allowances for each year of ownership after the first five years. After 15 years, the gain is free of tax and social charges.

An amendment was adopted by the National Assembly during the course of their examination of the 2011 Finance Bill. If amendment is agreed by the Senate, it will increase the tax payable on capital gains concerning immovable property.

Probable Regime from 1^st January 2011

The measure voted on the 21^st October proposes an increase in the rate of tax from 16% to 19%. Social charges on property gains will increase from 12.1% to 12.3%. Whilst the tax will still be calculated after the 10% deductions for length of ownership, the social charges will be calculated on the total gain before taking account of such allowances.

Therefore, where a property is sold after 15 years of ownership, the individual will not have any tax to pay, but they will still pay social charges of 12.3% on the full gain. The gain is taken into account when looking at taxable income for the purposes of the Bouclier Fiscal, but the amount taken into account will be the full gain before any allowances (previously it was just the taxable gain after allowances).

If these measures are adopted by the Senate, they will affect individuals who sell their property after 1^st January 2011. Therefore, if a sale is on the cards, the Acte Authentique should be signed before 31^st December 2010 in order to benefit from the current rates.

Peter Elias www.allez-francais.com

Immaculate 19th century Château with far reaching views

This beautiful and homely chateau, built at the end of the 19th century, is in a private position overlooking a valley with far reaching views.

The entrance is through the round tower where you find yourself in an original panelled hall (32m²) with stone floor and original staircase. The salon/dining room (60m²) was two rooms but has been opened into one large space with marble tiled floor, 5 windows giving spectacular views on three sides, a large stone fireplace provides a central focal point and the walls have been fabric covered. The breakfast kitchen (18m²) is fully fitted with oak units in a traditional style, plenty of room for a large table. The office (26m²) is panelled in wood with complimenting fireplace and lovely views over the valley. Family bathroom (11.5m²) has double vanity sinks bath and bidet. Separate wc. Door down to the sous-sol area.

On the first floor are 4 double bedrooms, all with lovely views, the floors are all original wood parquet in great condition. The master bedroom (27m²) has an en-suite shower room, bedroom 2 (27m²) has a dressing room in the tower, bedroom 3 (27m²) and bedroom 4 (12.5m²). Family bathroom (12.5m²) has 2 vanity sinks, bath and wc. Separate wc.

On the second floor are 3 large bedrooms, tower room and 2 attic rooms for possible conversion.

The basement or sous-sol can be accessed form the house and the garden. It contains various useful rooms, all with high ceilings, laundry, boiler room and cellars for wine storage. There is also another large vaulted cellar (380m²) which is under the terrace and garden.

Outside are the dependences and garages (totalling 220m²) in superb order.The gardens have a superb balustraded terrace overlooking the valley.

Link http://www.allez-francais.com/details.php?pty_id=1227

Great business opportunities

With the summer season now past, there are a number of gîte complexes out there for sale, some are good and some are quite frankly bad.

I have chosen to highlight a couple, coming in just below 500,000 Euros, which is around £445,000 at today's exchange rates.

Both are located in South Deux Sèvres, well-known as the 2nd sunniest region of France. There are good road, rail and air connections to this area, and attractions such as La Rochelle, Cognac & Futuroscope are within an easy drive.

The 1st complex is made up of a 4 bed Maison de Maître with 4 cottages to let, (proven track record), and has 2 swimming pools. Priced only 495,000 Euros.

http://www.allez-francais.com/details.php?pty_id=792

The 2nd complex is a large French farmhouse with 4 beds, plus 2 gites, 2 chambre d'hotes rooms, a large bar, plus a mill to restore in a riverside setting. Price 495,850 Euros.

http://www.allez-francais.com/details.php?pty_id=1225

Do get in touch for full details of these special properties.

Peter Elias (Agent Commercial) http://www.allez-francais.com/

Currency volatility back in the news

Once again the GBP/Euro pairing was volatile this week with highs reaching 1.1807, lows of 1.1509 and an average exchange rate of 1.1686. This equates to a difference of 2.59% between high and low leading to a difference of 6,475€ on an exchange worth 250,000€.

Last week saw the publication of UK GDP data which temporarily caused a positive shift in the value of Sterling. This was short lived and the value of the Pound against the Euro dropped off towards the end of the week.

Sterling has been relatively strong against the other major currencies this week leading analysts to speculate that it is primarily Euro strength which is causing the movement. The value of the Euro has managed to rise even in the wake of the increased bailout of Anglo Irish Bank and the
downgrading of Spain’s credit rating.

Looking to the week ahead the Euro could strengthen further on the back of the announcement of Germany’s Purchasing Manager Index (Manufacturing) which is expected to be bullish. The PMIM measures the level of goods manufactured in the Eurozone’s strongest economy and therefore indicates consumer purchases and German trade levels.

On Thursday the BoE announces its interest rate decision. A hawkish outlook from the Bank and a rate rise would be positive for the value of Sterling. However it is important to note that the BoE have not indicated a rate rise and dovish comments could see GBP lose more ground to the Euro.

Both of these announcements could mean it is the ideal time for Euro buyers to capitalise. The
points raised emphasise the volatility of the market and the necessity to remain in close contact
with specialist currency exchange dealer, perhaps about the benefits of forward contracts as a way of safeguarding a rate of exchange. Small changes in exchange rates can lead to large
differences in transactions so utilising the expert knowledge and professionalism of a dedicated trader can help you save thousands of pounds.

Peter Elias www.allez-francais.com
sales@allez-francais.com

Golfer's paradise

A luxury modern property with a heated swimming pool, close to leisure lake & golf course, just bring your suitcase and golf clubs !

Completed in 2006, this spacious 3 / 4 bedroom, 3 bathroom home offering 190m² habitable area, with a heated swimming pool on a large elevated plot with views towards a lake and golf course, outside you will find a gravelled driveway, a large parking area, and a landscaped garden with stream running through it.

Membership of the local golf club gives you the opportunity to enjoy a testing 9 hole course as well as a beautiful wooded 18 hole course. This course is in partnership with another course just 15 km away, thereby giving members two courses for the price of one!The property is in a small hamlet in the south part of the Corrèze department. There are several local villages classified as "Les Plus Beaux Villages de France" within a short drive. The area is now serviced by Brive / Vallée de la Dordogne airport, with flights to London, which is likely to result in an increase in local prices. More photos and room sizes available upon request.

Link http://www.allez-francais.com/details.php?pty_id=1210

Peter Elias (Agent Commercial) http://www.allez-francais.com/
Dordogne Valley Contacts Tel: 05 55 28 46 40 (France) or Tel: 0844 284 2569 (UK)