View from the Foothills of France

Some personal views on living, working,
bringing up family and making the dream happen in the most beautiful region of France. View from the Foothills of France also includes some personal and professional thoughts and tips on finding and buying the perfect property in the Ariège and Haute Garonne regions.

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French property prices 2015/6

By nadia, on 23rd February 2016

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For the first time since 2012, the prices of old French houses in France have slightly increased according to the latest property report published by the Notaires de France at the end of January. The report shows that, in the third quarter of 2015, the prices of older properties in mainland France rose 0.3% compared with the previous quarter in seasonally adjusted figures.

Certainly in this area of France (and most particularly the Ariège) there has been a notable upturn or activity in the property market. There are, of course, all sorts of reasons for this but, most notably, there are some market factors that have come together to give French rural property a noted boost:

  1. A weakening Euro rate against many major currencies means that buyers can get incredibly good value in France
  2. Low interest rates and good access to French mortgages for foreign buyers
  3. Supply of homes in the market are still plentiful and sellers are more prepared to negotiate than in the past
  4. Rural France is still seen as a safe place to both invest and to live
  5. A general economic recovery throughout Europe and America is inspiring renewed confidence in foreign property investment

In rural France, one of the best indicators of the state of the property market is generally the number of sales and, since the middle of 2015, the report shows that the annual volume of transactions has seen a gradual but increasing upturn. The number of transactions completed in the last 12 months was estimated by the Notaires of France as 792,000 which is up 12.5% over one year. This is the biggest rise since the spring of 2012.

If there was ever a ‘best time’ to buy a house in France, this may be it.

 

 

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What would leaving the EU mean for Britons with property in France?

By nadia, on 11th February 2016

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Britain joined the European Union in 1973 and, since then, hundreds of thousands of Britons have chosen not merely to holiday in Europe but to buy property or make our homes here. Higher disposable incomes, more flexible working practices and cheaper travel have encouraged this trend but so indeed have successive European agreements covering banking, tax, insurance, health care and travel, all of which could presumably change if Britain were to leave the EU.

According to the Vienna Convention on the Law of Treaties 1969, current British expats in Europe have ‘acquired rights’ in their adopted home countries which should still be the case should Britain vote to leave the EU. Certainly precedent suggests that British expats should retain their free movement and all their rights within Europe following any withdrawal as was the case when Greenland withdrew from the EU in 1985 so it can be safely assumed that the same would apply to a Brexit.

The most obvious problem therefore would not be Britons already living in France but those wanting to move abroad if Britain leaves the EU. What might Brexit mean for those thinking of buying homes in France in the future? The truth is that nobody knows for sure but here are a few possible outcomes:

  • The return of the ‘Carte de Séjour’. These were required for British nationals living in France before 1973 (and for a long time afterwards in fact) and could be introduced again as could travel visas such as those required for the US (where numerous Brits also own property). So more paperwork and red tape but really nothing insurmountable.
  • British buyers might find it harder to get a property loan in France if Britain withdraws from the EU – or at least they might find themselves paying higher mortgage rates than EU members. Banks in EU countries view non-members differently and Americans or Australians are typically unable to borrow as much as Europeans and often at a higher interest rate. The minimum deposit required for a mortgage in France is usually around 20% for European buyers whereas it can be as much as 50% for non EU citizens.
  • Tax changes are possible in the case of a Brexit because EU citizenship comes with tax perks particularly in relation to property. When it comes to property taxes, being an EU national brings with it a certain level of protection whereas France is notoriously tough on non-EU citizens, imposing a capital-gains tax of 49%. Residents of any EU or European Economic Area country pay 19% capital gains tax at the moment. However, everything points to the fact that, if Britain leaves the EU but remains in the single market, the current tax agreements should remain. Crucially, the double tax treaties that Britain has agreed with EU countries will remain unaffected. This is because the agreements to ensure people aren’t taxed twice on the same money are made individually with each country.
  • Under current EU regulation, Britons can visit any EU country and expect to receive the same health services at the price a local would pay. In the case of a Brexit, this would only continue if the exit agreement includes reciprocal health care.

At the moment, all we have is uncertainty which is not good for anyone and nobody can accurately predict what the actual economic or social fall-out will be should Britain vote to leave the EU. What are the actual reasons for leaving anyway? Personally, I have yet to hear any clear argument. Of course there are plenty of things wrong with the EU but, equally, there are many things that work very well. The only person I have heard so far who has really hit the nail on the head (as he always seems to manage) is George Monbiot in the Guardian so I will leave him to have the last word on the subject: ‘The EU is like democracy, diplomacy and old age: there is only one thing to be said for it – it is not as bad as the alternative’.

 

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The climate in the foothills of the Pyrénées

By nadia, on 19th January 2016

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Often when I tell people that we live in the foothills of the Pyrenees, they tend to assume that we are snowbound for much of the winter. Generally they are amazed to discover that, despite the fact that our village is less than 50 kilometres from the nearest ski resort, we actually get snow only a few days a year (if that) and often winter temperatures here are much higher than those in the UK.

Winter nights and early mornings are cold and we wouldn’t be without our wood burner but we are a long way south here so the sun has real warmth in it. Winter afternoons in the sun can often reach 17 or 18 degrees and we regularly sit outside to drink our coffee or enjoy lunch in the sun in February – a phenomenon I don’t ever remember experiencing in England. Cold and snow may be causing havoc in the UK right now but here in the lee of the mountains, we are enjoying the protective Foehn effect which means warm air and sunny days.

What’s more, rainy winter days aren’t miserable and vaguely depressing when you live in the foothills of the mountains because we know that, while it may be raining on us, fresh snow will be falling up in the mountains with all the promise of a fabulous day skiing, sledging or snowshoeing in the sun in the days to follow.

For me this is a perfect winter location; we have sunshine and warmth on a daily basis with chilly nights providing the perfect excuse to snuggle in front of the fire with a hot chocolate.  Meanwhile, on the horizon, there is snow sparkling on the mountains with sledging, skiing and fabulous snowy walks whenever we want. The foothills of the Pyrenees truly are a winter wonderland.

 

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The best investment you will ever make

By nadia, on 5th January 2016

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Whatever your job and your experience, if you are honest, do you really feel qualified to find and buy a French property without some expert (and unbiased) advice? Even if you speak good French, it is probably unlikely that you have a perfect understanding of how the French property market works. There is, of course, plenty of information out there on the internet but there is also plenty of misinformation and it is very difficult to differentiate the two.

Even if you have bought lots of properties in the past, the French property market is different to many property markets. On the internet, there is no Zoopla or equivalent multiple listing site of all of the properties for sale in a particular area in France and, in addition, most houses appear on a large number of different sites, often at different prices with different photos all of which can be very confusing. In addition, of course, these listings are there to sell the property, not to give you the true picture of what the house is really like.

There are certainly plenty of estate agents in France and they will be incredibly helpful and nice when you visit them in their offices but try seeing how many reply and keep you up to date with new properties when you are contacting them from abroad; it can be a very frustrating process according to most of my clients who have tried it before coming to me. Remember an agent is there to sell you a house on their books and they are really not interested which one or whether it truly matches your criteria. Most of these agents work on a commission only basis and so they just want to sell you a house and the more houses they show you, the more likely they think they are to sell you something. What’s more, they only have a limited number of properties to sell and those only in a small area so you will probably need to deal with numerous agents to ensure you get information about every property for sale in the area you are looking.

It is true that coming to France to view lots of properties can be fun to start with but those trips (there are likely to be many) will soon become a huge waste of time because most of those houses you have booked to see, will turn out to be totally unsuitable. If you have plenty of time and not much else to do, this probably doesn’t matter but, if you are short of time, there are probably better ways of spending it.

When time is precious and getting it right is important, why not ask a property finder to do all the research and leg-work for you?  A property finder will already have a feel for what is on the market that matches your search criteria and budget. They will deal with all the agents in the area but also the notaires and private sellers and they will also be able to dig out houses that are not on the open market. Once they have done the initial research, they will pre-visit all of the houses which appear (on paper) to match your criteria and it will be their time wasted rather than yours when the majority of these properties do not in fact match up to their promises nor meet your requirements. When your property finder does finally view a house which seems to be a good fit, they will take photos of how it really is and write up a report for you so that gradually you will have a short-list of houses that really do match your criteria.

Hence, when you finally make that trip to view your short-list of box-ticking houses, you know already that it will not be a complete waste of everybody’s time. It will be a well organized and managed few days to maximize your time and show you everything that you have already pre-approved. Moreover, you know that, when you finally meet your property finder, he or she will be completely impartial and able to give advice on all aspects of buying property in France, living in France and will offer an in depth knowledge of their region. Plus, they will be completely on your side before, during and after the sale.

I wouldn’t buy a property abroad without using a property finder; I have too little time and, what I do have, is too precious to waste. If you have similar concerns, why not get in touch, it could well be the best investment you will ever make and certainly the best investment you make this year: nadia@foothillsoffrance.com

Wishing you all very happy and successful property hunting in 2016

 

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