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Hello All.
I hope that this post helps you guys.
My wife and I purchased a property in Cannes in the South of France in November 2007.
At this time t
he interest rate was 4.1%.
Purchasing was relatively pain free, as we had a few bi lingual people helping us along the way. Our Noterie ( lawyer) also was fluent in English, as all the documents must be "officially" translated and witnessed by a justice of the Peace.
You will have to be present to sign the papers, or have a llegally certifed POA.Australians can purchase in France.
However when selling you will be charged a much higer rate of CGT. This I believ is around the 30% range.
We hold a EU passport. Not only does this keep the property off the Aussie Radar, when we sell we will be charged only about 12%.We had our finance organised through a financial advisor who we have used for a few years. He is based in the South of France. ( hes and english expat)
The bank we haveour mortgage with is UCB and all the liason is in english. ( this may only be in the south of france)
To purchase- we had to put down a 22.5% deposit. This is becuase we were not French residents. and had to get a loan.
basically- the bank want to see you have at least 10% deposit. plus an extra 5% ( who knows what for) then the Noterie fee of 7.5%)From start to finish the whole process takes about 3 months. Dealing with the froggies can be very daunting.
Some things to keep in mind-
The French Property market especially in the South of France.
A- Is generally alot more expensive than the rest of France, especailly Cannes. there are some great little towns near bye called Juan Les Pins, Antibes, Biot, Golfe Juan.Cannes is a vibearnt year round desination, fuels by the many congresses, lush mansiions, ritzy hotels. the Canes film festival is a big one.
If you have the right selected property in Cannes, you can often lease them short term.
Last year we achieved aprox 9 weeks of income.
The income for this nine weeks was 17,000.00 euro.(Mipim the worlds property congress- 14th-17th March 5,500 euro)Our purchase price was in the mid 400Ks for a 3 bmr bel epoch style apartment.
I know that the Eu/AUS exchange rate is significantly changing so you really must do you home work.
The interest rate is still very low in France, the local French don't earn very much.
I know that 2brm apartments can be purchased for around the 220k mark. (euro)ISorry for the randomness of the order with the post I hope you get something out of it.
you can check out my website – cannescongressrental.com. we made it our self and advertise on the web.
for research- on rentals.
check out http://www.holidaylettings.co.uk
http://www.primaryrentals.compleae feel free to get intouch, I can try help some more.
Jase
Hi there Bill,
Hope you are ell.I bouht my first property when I had just truned 19. I am now 27.
As a young bloke, it was a time full of different emotions,
while all my mates were out chasing women, and speding any cash they had I was ( well working my butt off)
I can tell you it was one of the best things I have ever done,Some things to be careful of- The "creatures" (rental agents) treat you like a little kid, sometimes dont take you serious enough. so its best to do your research and at all times yu are the boss. Dont et them try to influence you, as they will try!!
Getting finance als I found alittle tricky, the banks kind of looked at me strange too! I went to an independant broker in Perth, one whom I am now still in great contact( for further investments since)
so if you go in confidnet, with some cash in the bank to start with they will take you alot more seriously.I dont live in Australia now, but sos they still offer the FOG? (first home owners grant) that can be used for your stamp duty,fees, and even to boost your deposit.
you can only use the FOG if you plan to live in the property for 12mths min, beofre you can leave to rent it out etc.So my advice is, go for it! Do your homework, get some cash up front-
Do Not rush off and use you pre opproval., always sleep on the oppurtunity for a night and see how you feel in the morning!
I my opinion also, dont haggle over a few K eg 5-10 cause in the long term you will make great profits.
Dont AT ALL feel silly about making a low offer!! many factor contribute to why the home is stil for sale, legally the agent MUST present all offers. (obviously dont be too stupid)
you can always counter a few times, but what ever happens ALWAYS go for a WIN win situatin, for you and the seller.some negotiation points can e- longer settlement=cheaper purchase price etc.
I hope I have helped alittle, without going too far ino it all.
Just remain in control, be cautious of people offering advice etc. I mean for personal gains ect
(haha says me posting)feel free to send me an emal or messge if I can help anymore,
cheers
Jase
Hi there Recco,
some interesting points mate, above.
My opinion is that you seem alittle too eager to take what "anyone will tel you" I am not sure how old you are , but I am young -26 and have a fair few properties up my sleeve already. I am from perth too.
- Definately make a plan " Failing to plan is planning to Fail ( straight out of a text book)
- There are NO friends in bussines- its your future
- All agrents are "Blood sucking" creatures- I have yet to meet a human one. ( quote craig turnbull)
- Do your research
- Learn and suck up as much info as you can!! from people, books, websites (such as this great one)
- Remain in control
In my opinion, its not time to buy now. As you know or may not know, Australia has a strong history of following the US market cycles. Look at the US now its in a shambles.
My advice, save your ard earnt coin, use the coming months to get " full bottle" on what the market is doing, learn about agents, and the areas you want.
get the pre approval, in the mean time.
And…… when other people ( not you) start feeling pressure cause of the high interest rates, and sell sell sell!
you…. and I can pick up a few nice bargains.
Perth as you know has had some major, ( too much I think) Booms recentlly, its all abit OTT if you as me.I strongly recommend to read some of Craig Turnbulls books, he has some CDs too.
He is from Perth also,as a previous poster mentioned- http://www.reiwa.com.au
I hope I have been of some help.
remember- Soak it up like a sponge….. And…. you are always in control no matter what!
Good luck,
JaseI hope to hear how it all goes!
In my lifestyle ( job)
I travel around the worl d a hell of a lot, spendin often montsh at a timethe past few years i have spent a lot of time in the US, most recentlly 3 mths.
I can tell you now,
Australia is heading exactly the same way!! its not only "politics" that we like to be right behind the US….. its our entire economy. also
Sad but true I tink, whats happened to our " lucky country"
The US is a real mess, I pray that our great land doesn't go the same way.
too many people, have jumped on the band wagon, with ( like the above poster said) someone with a sales pitch or service to promote, gives their view to generate business.
A good point, cause its not the "littel aussie batteler" who got the "great deal"on a too good to be true mortgage" who is going to be better off.
oh- Invest OverS eas( but not the US) and you can find great C+ deals.
Sorry if it was direct, but Australia is in for a big slump.
i am saving my $$$$ and will pick up the bargains later on.J
I would use LLC,
as Pty from my knowledge is only Australian.
Australia is a small market, if you look on the global scale, and more people would be familiar wih LLCt than Pty.My confidence is growing with online buying, so if you concentrate on "emphasizing " security etc yu might be on a winner.
I dont like using sites if the look the lest bit dodgy.good luck with it!
J
Sorry-
Just reading through some of your posts,They won't just give you a visa.
You have to fill lots of paperwork, go for a very uncomfortable medical, you must come back to the UAE a few times every year to keep it valid, and you need to pay a few 000's AED every year for it.Like I mentioned in my big post, please do your ground work, asses every option and the investment will be amazing.
and expect delays……. lol oh it was so much fun! haha
J
For those interested in purchasing in Dubai-
I have just taken the keys to an "off plan" property that I have been waiting for for 3 years.
My thoughts are, that if you can wait that log, ok. but it was very difficult to deal with the "local way" of doing business.
Yes- as mentioned they have a lot of infrastructure, but dealing with the devlopers there is another story.To cut a long story short- I was told a month ago that the apartment ( located in Dubai Marina) was 100% finished,
I therefor flew over from France ( where I live), as its too difficult to arrange a "Power of Attorney" ( docs must be in engish and Arabic, and must be signed by the principal MAN owner in front of a judge in Dubai) sorry ladies( thats the law)
I then went to the apartment for an inspection of the property with the developer, and guess what….. "it hadn't even been painted yet" and there were on going works in progress.
this was also with a well known major developer in Dubai.The construction work force, is usually from the "poorer" nations, therefor although they can build the 1000's of buildings that are springing up in Dubai at a rapid rate, the "finesse" in craftsman ship and the way of doing this is far behind the "aussie" standards.
But, If you can pick the right location, have a good plan in place it can be a great investment.
I still feel it will be one of the most profitable investments I have made yet,
but you need to be patient and my advice is to go to Dubai and check it out. I have heard many story's of people buying unseen, off plan "cause its the next hotspot" and yes…. they are getting burnt.Many of the developers offer a "residancy permit" for the primary "MALE" buyer ( sorry ladies) but having an Aussie passprt, really unless you actually want to live in the hot dessert its not worth the fees and the grueling medical you have to go through( in a small tin shed hospital)
with and Aussie passport you can stay upto 60days.Insurance over there is a new things also due to the middle eastern ways, so please check about that. if you think your developer has insurance…. "she'll be right/ I 'm sure they do attitude" you might just want to check with the developer and get it in writing.
i only came back form Dubai a few days ago and would be more than happy to share some advice etc,
I have a great agent that works over there for me, with a reputable, and western company.
but I think the 21% ROI that I am to recieve in cash, paid twice a year into any bank account I want is a good thing to go through the hassel with.
Dubai is great!! it really is,
hope this helps,
J
Thanks guys for your post,
both very helpful indeed. My account also confirmed and informed me of the procedure.
as I have lived in the property, yes I do have 6 years. of this i have another 11 months to sell, CGT free.
if I decide not to sell I can-
A) get an evaluation done, and start the Capital Gain Period from that date, ( Oct 08)
move back in to the property for anotheryear and start again,
C) sell the property nowthe the investment brain, keeps on ticking….
thanks again,
J
Well thansk very much guys for your replies!
I do totally agree with you
I am actually form Aust, but have been overseas for awhile,
I have probably not made my Bait as inticing as it should be, I have it all ready to go again so I will have another go.Thanks agian,
jason
So many plans, just never enough time…..
Get inspired!! unleash the passion within!!
Good one you,
he will probably come back at you for the extra 10, ( more comission food for the creature)
that call is up to you, but is sounds like you did a good job submitting the offer!
I am not sure about deposit amounts, I think tahst varies from state to state.maybe if you dont want to give any more for the property, try asking athe agent, how soon the people want to leave?
if they need more time, offer them an extended settlement, in exchange for a lower purchase price.
aim for YOu win, and They Win.just stay in control. of the creature!
JASE
G’day!
welcome to the site!
It sure is exciting isnt it? buying a property!!I like to look at realestate agents as ” creatures” all they think about is comissions! and the seller.
Legally from my understanding , the “creature” must hand in all resonable offers, of course they will cough and choke about our offers, but…
STAY IN COINTROL at all times. and be firm, with your decisions,I also, with out being stupid about it, if I can afford an extra 5-10k, sure go for it. because in a year, or 2, you will laugh at that extra 10 you paid.
Do this only if you feel comfortable, and if you are going to Buy and hold, cause if you want to flip or something, you are spending your profits, and useually you make the most money when you buy the place.
I have gone a bit off track, but I hope i have boosted your spirits and your confidence!
Check, out a book, BY Craig Turnbull,
Best of Luck
Jason
JASE
DrX Thank you very much,
I will have a look into them,
also thank you for your reply last week about the smaokers issue in one of my rentals,Great!!
Thanks,Jason
JASE
Hi there Dee Dee,
First of all congrats on your 1st IP.I personally would aleays get a manager, pay the fee now, will save you a headache and more fees later,
I think thatyou 8.8% fee is alittle high, being from Perth also, I pay 7.5%, and because I have good tennent, and it is an investment I have requested inspections, only every 6 months, this save some, bucks,
also, with every investproperty, its an “analytical game not emotional” so you remain in control, and if you are not happy with your agreement, seek another agent, it does pay to shop around.I hope i have helped?
also, how did you find your Perth Buyers agent? honest enough?
Jason.JASE
G’day Joel,
As a young guy myself, I can see that ithere are alot of decisions, to make! But I can assure you once the dust has settled and you have your own pad, you will be well on your way, and it is not as scary.
read as much as you can, you can make alot of money at the purchase, not the fial sale, your knowledge is the keythe longer you wait, the more out of reach it gets,
do your sums, and only spend what you feel comfortable with,
Keep reading this website!! I hope I helped alittle,
J
JASE
G’day . Congrats on your purchase, I hope it is the first of many!!
I am now 24. I bought my first appartment when i was 19, and it has been paid off.
But…..
It wasnt easy!! I was quite tight on the old wallet for awhile( i still am!!) I had a big reive of my monthly cash intake, and automatically cut out all those comforts. I gave up going out spending alot of money on things that A, i did not need, B gave me a headache the next day, etc etc.
I straight away doubled my payments, per fortnight. then every other week I used my deposit book and made another payment, thus paying weekly. at the end of every month if I had money spare, I would keep about 50bucks, then put the rest on the mortgage, as an additional payment..
Go back and live with your folks, or get a mate to share.I hope this helps, it is worth it in the end. once you have that first bit of capital up your sleeve.
good luck,
regards,
Scroodge!!Jason
JASE
Hi Alee,
Get hold of tthe strata title. it will have all the info of the original site, ans the building age.
the agent (creature) will tell you what ever they want!! to be sure, ask him to get the correct info, tell it ( the creature) in order to make an offer, you need to get the info correct. Check out the strata fees, also, these can vary alot.
good luck,
JaseJASE
Hi mate,
Get hold of tthe strata title. it will have all the info of the original site, ans the building age.
the agent (creature) will tell you what ever they want!! to be sure, ask him to get the correct info, tell it ( the creature) in order to make an offer, you need to get the info correct. Check out the strata fees, also, these can vary alot.
good luck,
JaseJASE
G’day Barni,
My advice would be to first have a look around at some other agents, ask them there procedures etc. If some of your friends have a good agent, ask them what there details are, maybe change agents. but you will hve to give the correct notice to your current slack one.
Managing your own place can be very good, but it can get very messy. if your tennent has been the place for awhile, it may help the desicion, easier for you.
Check out your Land lord protection insurence, sometimes insurers wont cover you if you manage your own.If you live close to the property, this would make it easier for you also.
I hope this helps abit.
jaseJASE
Thank you, I do agree, if i am goning to go hell for leather, I want to get the sturucture and planning right the first time!
I will see what happens in the next week or two,
This site, is great. Much better than some of the others I have seen,
Cheers,
JaseJASE
move back in to the property for anotheryear and start again, 
