Buying French property? Beware of false images...

Like all product advertising, vendors and agents can use a number of visual tricks to enhance the look of a property for sale, including clever photography and hiding or masking defects.

Despite the procedures shown on French TV programmes such as "Cherche appartement ou maison' (Channel 6) in which would-be buyers join the agent on site for a series of visits, in real life more time is - or should be - spent in the agent's office discussing the clients' needs in detail, and as a preminary going through the agent's catalogue of available properties to have a general idea of what appeals to the client - or not.

French agents tend to cover a wider area, in my own experience it was quite a large chunk of Pyrénées Orietales and as a result often difficult to visit more than three or four properties during a morning or afteroon. Not just because of the distances to be covered but the admin required to contact owners, pick up keys from a branch office or keyholder, and arrange appointments.

As a result the preliminary meeting in the agent's office is important, to discuss the client's aspirations, budget, likes and dislikes, and view selected properties in the agent's catalogue. Many agency photographs are notoriously bad and frequently the subject of criticism. They rarely show an exterior due to the fact that several agencies may be handling the property for vendors who have signed an a non-exclusive multiple agreement. Very few are the work of professionals.

Using a professional photographer however has its good and bad sides. Photographs can be used to enhance the look of an average property - using more or softer lighting,  or taking shots from high up or low down to enhance the size of a room,  and at worse hiding or disguising defects.

Typical of these are proximity to a main road or railway line, surrounding buildings such as a factory, school or supermarket, or undesirable objects such as overhead electric cables and high voltage pylons. Frequently clients will arrive on site and are already rejecting the property before going through the front door.

Also anoying for potential buyers is the lack of a floor plan, which the vendor should be able to supply as it would normally have been included as part of his/her sales contract. This helps to visualise the proerty as a whole, see how alterations might enhance its potential, and offers an accurate scale plan showing actuall dimensions.

Curiously these small practical details are neglected by some vendors and agents, and sales are lost despite the property being within the buyer's budget. The programme noted above includes some interesting examples. not forgetting it is primarily designed for popular  viewing and includes much pratical advice from the presenter Stéphane Plaza.

Poster by peterderouffignac@orange.fr

French furnished lettings - security for both owner and tenant

French furnished lettings provide a measure of security both for the owner of the property and the tenant/occupier, following a tightening of the rules in the loi Alur of March 2014, promoted by the then housing minister Cecile Duflot.

Many are based on the regulations concerning unfurnished properties but offer a briefer period of tenure - 12 months renewable, reduced to 9 months in the case of a term-time student lettings - with the option to renew the tenancy and the right of the tenant to leave the property at any time at 4 weels notice.

On signing the tenancy agreement, the owner can ask for a security deposit of two months' rent (note that the maximum for unfurnished tenancies is just one month) and other provisions using a standard contract which will include an inventory of the contents. In order for a property to be classified as 'furnished' certain basic items must be provided by the owner, including means of eating, sleeping, heating etc and listed on a standard form which will become part of the lease and agreed between the parties.

If the owner wishes to give notice to the tenant, he can justify this only on restricted grounds,such as non-payment of rent or serious misuse, or his intention to occupy the property for his own use or in order to sell it.

How much to charge? It is possible for anyone with disposable capital to buy a property which has a tenant already in place (either furnished or unfurnished) so the rent will be known. The short-term furnished market is fairly competitive, offering a wide range of choice for a prospective tenant who will normally be well informed about going rates in the locality - from agency websites and informally from friends and colleagues. In some areas, including Paris, rents can be controlled by the local authority under new regulations (2016, 2017) designed to prevent price inflation where there is a known shortgage of available properties. Universities and other institutions may also have their own rules should a property owner wish to have his property added to their housing list.

Short term renters, according to the experts*, often have a different profile from long-termers and owner/occupiers, They may be younger, prepared to live in a small space (say, 20 square metres) on higher floors with no lift, and in cental/mixed areas that might not attract long stayers but which offer quick access to public transport, local shopping and other basic amenities, And if the property is well furnished and decorated and offers something a bit special renters may be prepared to pay an above-average rent.

Furnished lets by their nature mean a higher turnover of occupants than with unfurnished properties, and will need to be constantly refreshed and furniture  replaced. It may be possible to let them on a very short basis as holiday lets (such as through AirBnb) in popular tourist areas. In the case of 9-month student let, a two to three month summer rental might be possible - if the property is large enought for at least two people. If not, you could try attracting a seasonal worker. All these options require hands-on management in order to succeed.

* "Comment je suis devenue rentière" by Elise Franck describes in detail how she became the owner of several short-term rental properties, with numerous tips, illustrations and cost breakdowns. Essential reading, along with her website which cotains a lot of useful advice including before and after illustrations and examples of successful renovations.

Posted by peterdanton@orange.fr

Nearly 3000 new enterprises in my small French home town.........

'2 792 new enterprises in ten years' says the headline in my local newspaper L'Indépendant - surely good news for any small town of just over 100 000 people (200 000 if you include the outlying suburbs and villages.

Analysing the accompanying report however, there are a number of anomales which make interesting reading. Anyone who visits the area cannot fail to miss the large number of 'wind farms' which generate electricity as huge windmills are driven by the prevailing Tramontane gales blowing in from the north-west. What few people know is that every one of these - together with solar panels taking advantage of the 300 days per year of sunshine -  has to be registered at the local chamber of commerce as a 'business', adding considerably to the list of new 'enterprises' created - comprising around 300 to 400 'éoliennes' (windmills) implanted in the reagion.

The other major contributors are those registering as 'auto-entrepreneurs' following the creation of this self-employment regime in 2008 designed to encourage small, individual business start-ups. Of these some 75% are listed as 'personal srvices' - from hairdressing to all types of care provision addressed largely at the region's growing elderly population. The area is one of the most popular in France for retirement - remarkably cheap housing, wide range of medical services from major hospitals and clincis to thermal spas.

Plus the sunshine already mentioned and the proximity of the Mediterranean coast and the border with Spain (Barcelona is only two hours drive away) which make Pyrénées-Orientales one of the most attractive areas of France.

Posted by peterdanton@orange.fr 

Property sales rise 5% during 2016 in Pyrénées-Orientales

Sales of property during 2016 - excluding new-builds - rose by a healthy 5% in Pyrénées-Orientales over previous years - and surpassing the levels of the boom years 2000-2007following the switch to the euro and the price inflation that followed; together with a slowdown in sales - including by British and other non-French purchasers during the years prior to 2000  when prices were ridiculously low compared with Britain - a two room apartment on the beach for less than the equivalent of £20 000 was not uncommon.

The region is a now recognised first-choice for retirees from the post-war boom generation who benefited from full employment and increases in living standards during the 'thirty glorious' years up to 1980 and the shock of the first oil price rises. The typical French buyer from that period owns a house in or near Paris which can be sold for a high price that offers a comfortable budget with which to buy an apartment or house in the rural or coastal south, an area where the average price per square metre can be as low 1200 euros.......

An article in the current Logic-immo journal speaks of the attraction of the numerous small villages surrounding Perpignan, within easy reach of the Mediterranean coast (where prices are higher - for example around 4000 per square metre in Argelès-sur-mer) and the mountains inland, together with the proximity of the Spanish border for low-cost shopping; and Barcelona reached by car in two hours or fast TGV rail services (under 1 hour from Perpignan).

Posted by peterdanton@orange.fr

Paris 'chambres de bonne' to be converted into apartments

There are over a hundred thousand chambres de bonne - small attic rooms on the top floors of residential apartments, and traditionally used to house maids working for the owners below. As the employment of maids has decline over the years, owners tended to hold onto these tiny spaces, too small to legally rent (about 15% were let where they conformed to minimal size regulations) while the rest were left empty or used for storage. Their value however continue to rise with property price inflation, and was estimaed to have risen by over 80% since 1990. 

The city of Paris has recently inaugurated a policy of buying-up these attic spaces, and joining two or more together to create larger, saleable apartments.  Under this scheme an average of four chambres are linked together to create an apartment of 40 up to 130 sqare metres. When completed, they are sold in the smarter districts at between 11,500 and 12,500 euros per square metres. 

The first experiment has already resulted in a total sell-out - mainly to French buyers, who find these attic lofts attractive, particularly where the package includes improve access, such as widening the 'back stairs' or installing or extending a lift. 

These efforts alone wil not solve the capital's perenial housing problem but with over 100,000 empty chambres de bonne to working with, some thirty to forty thousand new homes could be created. 

Posted by peterdanton@orange.fr

Taking your home with you when you move

This post is inspired by an an Amercian TV series currently being shown on French television* about buying, transporting and renovating timber based affordable homes which can be sited wherever you want.

Much of the action shown takes place around Forth Worth (Texas) and features a series of entrepreneurs - a young couple husband and wife team, two sisters of a certain age, and a fearsome grandfather working solo - who buy up decrepit wooden homes sold at auction (sight unseen, buyers were not allowed inside until after purchase) and rarely costing $200 and often much less.

The secret is that the properties are large enough to include one or two bedrooms - but are transportable using a wide-load trailer and benefiting from the areas major highways. The journeys are generally around 50 miles, with an obligatory police escort, and in only one case it was found necessary to saw the building in two (it was T-shaped) and transport it in two loads. Average cost of transport including a police escort was around $5,000.

Back at base the entrepreneur(s) then proceed to convert and renovate the wooden structure, paying particularly attention to the floor and foundations, the ceilings and roof, plumbing and electrics etc - but rarely spending more than $10,000 to transform the property into a desirable small home.

On completion the wooden home is then sold agan at auction, for prices averaging around $20,000 and occasionally reaching $30,000 or more for a particularly large or attractive model. Buyers than were faced with the cost of further transporting the property to their own site and placing it onto the necessary concrete foundations, and connecting to the main services. As a result they ended up owning a desirable new property for a fraction of the normal costs of a bricks-and-mortar version on an estate.

A colleague who spoke to me about this type of housing solution said it was common in some parts of Australia for owners of this type of property to transport it by wide-loader to where they wished to move , enabling them to continue living in their existing home in which they had already invested.

It should go without saying that politicians and planners should be bold enough to permit alternatives such as those shown in the American programme. Note finally that the average $30,000 to $45,000 cost is about one-tenth of the prices being quoted for the British 'garden villages' recently announced by the Conservative government.

* French channel 6ter (22) Sundays from 11.00am 'Rénovation impossible'

Posted by peterdanton@orange.fr

How to downsize without becoming a minimalist!

As I have suggested in earlier posts, moving into a smaller property when you approach retirement does not necessarily mean that you have to adopt a spartan life and live out your retirement as a confirmed - or newly converted - minimalist. Downsizing can be a gentle process and can mean occupying no more space than you actually need and enjoying the savings - in cost, time and effort - that can result.

- As I have noted below in my advice about acquiring a (French) property, owning or renting no more space that you practically need saves money (a surplus can be saved, invested or put into your 'just in case' fund); it costs less in heating, lighting and maintenance; costs less to furnish; and offers savings in local taxes, rates, insurance and uitilities.

- Acquiring a smaller space means that you can consider buying rather than renting - if you buy wisely you will invariably get your money back on re-sale, even make a profit. You may be able to pay cash, using the proceeds of your own sale, rather than paying interest on a mortgage. Every case is different and you need to seek professional advice before deciding. 

- Simply giving up the idea of a spare bedroom(s) can help; Many I have seen gradually end up as a junk store, while you can still invite friends and family to visit and enjoy their stay in a rented house or flat - particularly good value outside the main season, and offering a 'breathing space' for both you and your visitors during a long stay.

- In my smallish loft the couch in the living room quickly converts to a double bed (duvets, linen etc are stored below the seating) and is ideal for close friends staying over for a night or two. I also happen to live above a bed-and-breakfast (chambres d'hotes) which offers another convenient alternative.

- When I lived in a studio on the marina I noticed that many boat owners also own a small studio property for visitors, as even a largish boat can become unbearbaly crowded with too many aboard. (When I left I in fact sold my studio to a 'typical' boat owner couple. They also slept 'on land' overnight if the weather was particularly stormy).

- Living in a small space also means that you become automatically tidy. Choosing your new space wisely means that you have ensured there is sufficient space for your (fewer) possessions and your motto can be the well tried 'a place for everything and everything in its place'. It works.

- Among the reasons why I left the marina and moved into a small town were the fact that the marina and adjoining 7 km beach attracted ten times the local population during the high season (principally July and August) and became eerily quiet for the rest of the year. I lived in a typical 'holiday apartment' block of 60 flats, and at most five or six of us lived there all year round (convenient when I was out and about property selling but lonely during quiet periods).

- As a result shopping and other essential services closed outside the season and a lot of journies had to be made by car (which I wanted to get rid of). I had done this  in Central London, hiring as and when needed. Surprisingly cost effective, with a full tank and a clean car when I needed it, and no maintenance!

- Apartments and houses in the heart a typical small French town tend to be cheaper because they invariably lack car their own parking space or a garage. It is possible to use public (paid) parking in the local streets or space in the many private car parks nearby. Property prices rise for just-off-town-centre properties that include parking - and perhaps a garden - and 10 - 15 minutes walk to the town centre.

- I now live in the heart of the historic old town, in a gated pedestrian alley, and surrounded by pedestrian-only streets. Within 5 minutes walk I can reach my bank, the main post office, my doctor and numerous specialist health services like X-rays and blood tests; plus a supermarket and two mini-markets that are open till 8 pm and Sunday mornings, and the daily open market in the town square (and an indoor market next to my bank in early 2017).

- These are just some of the reasons why I chose to move where and when I did. I had a lot of freedom of choice to make my own decisions and your own personal case may be entirely different. As noted above you should seek professional advice for some decisions. I have made mistakes and had a lot of advice from close friends - which I have tried to follow. Honest!

Posted by peterdanton@orange.fr




  

Buying or selling - preparing a property for sale

If you are prepating to move here's what you can do to help sell your property - and what buyers are often lookng for - including you......

According to recent research the way houses and apartments are sold has gradually changed over the last decade - owners are now taking more care how to present their home (known as 'house doctoring') and buyers are taking less time to search, viewing fewer properties before deciding, and come armed with a list of 'must-haves' which will define their choice.

- Typically buyers spend more time on the internet searching through agency websites and consulting private sales announcements and less time on the actual search, down to actually viewing just two or three properties in many cases. Items on many wish-lists include a preference for modern or older style properties, the latter often defined as 'le charme de l'ancien'. Older houses are seen as more solid and particularly if recently converted will appeal to younger buyers making their first purchase.

- Other popular requirements include:
- a large living room, preferably with an open plan (American) kitchen (rare in older properties unless recently converted)
- separate bedrooms for each child, to include a place to do homework, store books and toys, and convertible to a 'teenage den' in due course
- sufficient space and ceiling height to install a mezzanine
- separate larger bedroom for the parents (chambre/suite parentale) to include its own bath or shower room, and if possible a separate clothes storage area - known as le dressing.
- at least one more WC/shower room
- sufficient storage generally, though this is one of the easiest to remedy (numerous storage solutions offered at DIY centres etc)
- large garage - to include space for a workshop or hobbies, storage of sports or camping gear
- outside space - balcony or terrace, space for pets and children to play, possibly a swimming pool as you move further south
- parquet flooring, tiles acceptable in kitchen or bathroom
- a separate WC is a bonus - especially if it is equipped (rarely in my experience) with a wash-hand basin (to avoid visitors using your bathroom).

- A house or apartment with recent, neutral décor, as well as items from the above wish-list will make the job of selling much easier, provided it is well photographed and presented in the appropriate media. A pleasant location, including nice views, are a bonus though some buyers may compromise on either if the property itself really attracts them.

- Property descriptions to note include 'bon standing' (posh!), 'quartier tranqillle' (quiet neighbourhood), 'tout à l'egout' (connected to main drainage).

- Totally empty properties may be harder to sell as potential buyers find it difficult to visualise the overall space and imagine themselves in place. Leaving curtains hanging can help soften the space.

- Small spaces look better when furnished with a few large pieces of furniture (such as an attractive settee) rather than an abundance of smaller pieces, often advertised as 'designed for small spaces'

- I personally dislike convertible or multi-functional furniture - such as a sofa-bed (canapé) that has to be opened and fitted with sheets, blankets etc every night

- I also have a thing about ceiling (pendant) lights, particularly chandeliers, unless you happen to live in a chateau. They are best used over a table (such as a dining table) or kitchen counter, rather than as general room lighting - which can be harsh.

- Ceiling spotlights are much more subtle, particularly if you can adjust them to highlight interesting features of the property, such as wood beams.  You can do the same with 'mood' lighting, dimmers and 'task' lighting for example in your work area.

- If you are a potential buyer, your wish-list may include some or all of the above, and if these desirable elements are not already in place, you can view the property with an eye to its potential for conversion. This is where you may need to use your imagination. Many properties are on sale because their owners need more space and unless they have de-cluttered the property it will necessarily look small and un-manageable.

- You need to look at potential for shifting walls, taking advantage of large windows, introducing lighter colours (not patterned) on walls, using 'accent colours' to emphasise some features, furnishing with more modern pieces, and generally bringing the property up to modern tastes, either your own or that of a potential buyer.

- You may be depressed by the radical changes necessary to make your home  saleable, but keep in mind that your potential buyers will hopefully be the new owners with carte blanche to do what they want with your former home.

- You can get ideas and inspiration watching French TV programmes hosted by estate agent Stephane Plaza such as "Cherche appartement ou maison" featuring property buyers and "Maison à vendre" about preparing properties for sale.The average spend by vendors in the second programme is normally between 3 and 4 per cent of the asking price.  Both on Channel 6.

* An excellent source for design ideas and photographs of small spaces before and after conversions is the website elise-franck.com as well as her book which describes in great details how she goes about converting rundown  properties (in Paris, Lyon, Marseilles)  either for sale or short-term furnished letting. She also provide a consultancy service to clients. Packed with colour photographs and detailed cost breakdowns.

Posted by peter-danton@orange.fr

So you're ready to buy......some guidelines

I was fortunate in finding a job in France where I worked for an estate agency, with ten or twelve agents working from four offices, two of them on the Mediterranean coast, one in a small local town/holiday resort, and the fourth in a small village inland. I moved regularly between the offices and all of us had access to the central database which listed (in real time) some three to four hundred properties with photographs and descriptions, occasional ( frank!) comments by agents or potential buyers, and what stage the property was at - newly signed, frequently visited but no offers, under offer, in process of being sold. Our 'patch' covered a wide area (from Perpignan south to the Spanish border!) and we often drove considerable distances - far more than a typical local estate agent in Britain - sometimes making it impossible to visit more than two or three properties during the course of a morning or afternoon. Properties could be empty and we had the keys (perhaps held in another office) or could still be occupied by the owner/vendors and had to be visited by appointment.

But I gradually got to know the area and the wide variety of properties for sale, and what buyers were generally looking for, and what was feasible or not. There are over three hundred posts on this blog, identified by subject, relating to property buying and selling,  but I will try and summarise here some of the most important tips I learnt on the job.

- Allow yourself plenty of time and do not arrange too many appointments with competing estate agents or private sellers so that you have to cut short some visits. Many vendors sign multiple mandates and you may find yourself being taken to a property you have already visited.

- Be prepared to change your mind - I have met buyers who were looking for a village house who ended up buying an apartment on the beach.

- Be realistic about what you can afford. Vendors are hoping for the best price, often based on what they want to buy next, and are often unwilling to come down in price. If a property is over your budget, move on.

- Do not buy a property that is larger than you need (see earlier posts for reasons why)

- Choose your location carefully and re-visit if possible at different times. The quiet village may be overrun with tourists at weekends and during the holiday season

- If you are looking at apartments, ground floors are often cheaper, regarded as having less light, more noise, comparative lack of security.

- Older apartment buildings with no lift may mean that climbing to the third floor and above may be difficult for you as you get older.

- Check the neighbours - state of cars parked, quality of curtains at the windows, state of the 'common parts' of a building or street, though note that the French can be surpisingly casual about the state of their building which can conceal a luxurious apartment. Also for potential disburances - a school, bar, factory, main road etc close by.

- Get familiar with sizes: 20 to 30 sq metres generally mean a studio (single room) possibly with a sleeping alcove; 30 to 40 sq metres may mean two rooms; 40 sq metres and above mean larger living areas and more bedrooms (reckon each bedroom at 15 sq meters minimim). Don't forget that as apartments or houses get larger corridors occupy valuable space. As a rough conversion guide 1 sq metre is just under 11 sq feet or 1.2 sq yards.

- Note French classifications of property - an F1 means one room (usually including kitchen but with separate bathroom or shower, plus WC): F2 means two 'living rooms' plus kitchen and bath; F3 means three living rooms plus kitchen and bath, and so on.

- Note also that a mezzanine is not counted as habitable space (for taxes etc) nor are any parts of a room where the ceiling height is less than 1.8 metres, for exaple in an attic room with sloping ceilings. These spaces however make excellent storage areas and mezzanines can be ideal for bedrooms, an office or additional storage.

- You should also note that smaller properties when calculated per square metre can seem more expensive than larger properties. This is because a small apartment or studio - say, 30 sq m - includes a kitchen and bathroom as well as the living areas, whereas an additional 30 sq m in a larger property could be just another living or sleeping area or even space takend up by a corridor (adding comparatively little to the overall price).

- It is relatively inexpensive for a developer to add extra space at little cost and give it an attractive title such as a 'library', 'games room', 'guest bedroom' etc to inflate the sale price.

- A terrace or balcony adds to the price particularly if it is a reasonable size (to sit outside, share your breakfast!) and has a nice view.

- I found many buyers insisting on one or more 'spare bedrooms' which in my experience lie empty most of the time and end up accumulating spare belongings or junk which you could get rid of.

- Check the state of the equipment - electrical, plumbing, kitchen appliances, bathroom fittings etc - which may need serious modernisation or being brough up to current norms. The French tend not to have a formal survey done but there are several English chartered surveyors operating in France, catering for the British market.

- Note that if you are buying an apartment in a co-ownership, the documentation you receive will include a 'diagnostic' report including any works done or proposed for the building itself, and decided at the annual meeting of the co-owners. You will contribute to these expenditures in proportion to the size of your apartment, as you own a percentage of the building itself as well as the outright ownership of your apartment. You will of course be able to vote at the AGM once you become a co-owner.

- Check access of light and the orientation of the property. South facing means sun all day - nice if you have a living room with a terrace or balcony, not so welcome if the bedrooms are on the sunny side......

- Do not be afraid of a 'mixed neighbourhood' (quartier mixte) - class is not a major issue for many French and generally you smile and/or shake hands with everyone.

- Finally, do not 'fall in love' with the owner, the neighbours you meet during your visit, the estate agent....you need to be tough when you come to negotiating to buy (though this is best left to the agent).

Good luck with your search!

Posted by peterdanton@orange.fr

Fewer cars in French cities?

An interesting article in this morning's Guardian online* about various European cities which are making huge efforts to reduce inner-city traffic and make town cities more enjoyable for cyclists and pedestrians. Among them is the French city of Lyon, and there are several examples from the UK including London and Birmingham.

Many French cities are already experimenting with tramways, improved bus links and cycle routes, such as my home town of Perpignan, which also has a historic town centre which is largely pedestrian-only. At last concerns are being expressed about the growth of huge suburban shopping centres (we have two for a town of just over 100 000 population) and their effect on the closure of small independent shops and restaurants in the town centre.

The Guardian article has a number of useful references, including the forum '100resilientcities.org' and you might which to check my article below about choosing where to live in France.

*guardian.co.uk

Creative ways to buy your French homes

It is relatively straightforward in France to acquire and pay for a house or apartment, provided you have the cash available or are able to obtain a mortgage. The vast majority of transactions follow this route, but if you happen to be - say - single or poor (or both!) there are a number of more creative ways to buy your ideal property.

I wrote some time ago on this blog and in French Property News about a new trend whereby groups of family members or friends get together to jointly buy or build a single or group of properties, and thereby create their own large or small 'co-onwership' (copropiété). This is known in French as a 'habitat groupé participartif' and can range from two or three families or more who wish to select their future neighbours and work together from planning through to occupation to create their ideal environment. The motivation behind such schemes can be financial but some aim to bring together like-minded groups such as ecologists, vegetarians, retirees - and in one case I discovered while researching this subject, a group of women. This new approach is comprehensively described, with several case studies in a book by Yves Connan entitled 'Habitat groupé partifipatif' (Editions Ouest-France) and includes detailed cost breakdowns of various sized projects.

If you find this sort of approach too daunting you may be interested in joining a smaller group, including people you may not have met before, but may find through social contacts or even the internet (yes, there are sites and forums devoted to this).  I watched a documentary on French television last night which told the story of three such individuals - a young man approaching 30, a single woman about the same age, and another in her forties. They met via the internet and had got together to buy a three story house in a fashinable part of Brussels, which they planned to convert into three seaparate apartments on each level. They all admitted that - as they said - being single they would never have attempted this on their own.

The house had belonged to a single family but the three individuals, seen at the Notaire's office, basically each bought their own section, together with a share in the building itself. This is very much the same process as when you (individually) buy an apartment in an existing multi-occupancy building - you acquire your own freehold apartment, together with a number of shares (known as 'tantièmes') in the building itself. The only practical difference here is that the three people concerned were the first joint co-owners of what was to become a shared building.

I have just bought a top-floor apartment in a building occupied by just four people - my neighbour and myself each have separate apartments on the top (third floor), a third owner who owns the whole of the first and second floors (run as a guest house or 'chambres d'hotes'), while the ground floor consists of an indoor garden and the flat-cum-fitness studio of the fourth occupant. Our shares in the building itself are in proportion to the size of our apartments (I own a modest 160 out of a total 1000) and we contribute to joint costs - such as the building insurance (in addition to that of each individual flat) - in proportion to the number of shares we each own.We manage the building ourselves, without the need to pay for professional managers that may be needed in larger multi-occupancy buildings, and meet informally to discuss any issues arising. We have recently decided to upgrade the entryphone system and will split the cost four ways once we agree the electrician's estimate.

You might consider this approach if by chance you have descovered a likely building suitable for conversion and can find one or two others that may wish to join you as futur joint owners. 

Choosing your ideal French town

Those of us moving to France have a wide range of choices when it comes to deciding where you want to live. In addition to the basic north/south divide and the choice between town or country, coastal location or deeply rural, France is also blessed with a number of small size cities, each offering a variety of attractions.

Recent surveys in Britain and America have revealed a general preference for (in Britain) a 'market town' - one that is regarded as a manageable size and with all basic amenities within a convenient walking or cycling distance. While in America, as I reported in March on this blog (scroll down for more information) there is the start of a reaction against large out-of-town shopping malls, and a desire to live in small city centres that, like the British models, offer convenient shopping and entertainment choices that do not rely of using a car.

Interestingly, one of the major influences on town planning is a book written in the 1960s by a journalist, Jane Jacobs, called (The Death and Life of Great Cities) in which she analysed what makes a small city successful, under four main headings, which can serve as a useful guide when trying to identify you ideal location when moving to France.

1. A mix of 'primary users' who are drawn to the area either for work or because they livve there, plus sufficient attractions to bring in people from outside - such as convenient shopping, a library, a tourist attraction, a weekly market etc. The right mix is needed to generate sufficient 'foot traffic' all day and during the evening to sustain a sufficient number of cafés, bars, restaurants and other attractions. When reading this, I was reminded of the huge difference between London's City area and the West End, the former sustaining a tiny permanent population, and when th area is total deserted between Friday night and Monday morning.

2. The ideal city centre should have short blocks, with plenty of side streets that make access easier from one area to another. Long ininterrupted avenues are not inviting.

3. There needs to be a mix of businesses of different types, from specialist/luxury to those catering for everyday needs.

4. There should be the right density of population who can arrive on foot, which means efficient public transport (buses, trams, metro etc) and sufficient edge-of-town parking.

Many French cities conform to this ideal and, as in America (see earlier posts), there the beginnings of doubts about the efficacy of the out-of-town 'centre commercial' which eats up valuable land needed by hypermarkets and the adjacent parking. The result in many places has contributed to the death of the city centre. In my home town of Perpignan, many empty vacant shop have a sign in the window saying 'A city without commerce is a dead city'.

My local council are slowly understanding this and as part of their remedial efforts the  university, situated in the suburbs, is creating a new law degree campus in the heart of the old town which will cater for 500 students, on the site of the original university found in the Middle Ages!

The French prime minister Manuel Vals has recently spoken about the mistakes of the post-war years when huge estates of tower blocks were built, which have gradually become - in his words - ghettoes and no-go areas, with high unemployment and crime, and created a form of 'social and cultrual apartheid'.

One of the groups promoting the new thinking is New Urbanism (Gooogle will reveal all!) and it clearly distinguishes itself from the Urban Village Movement which promotes the idea of converting former industrial warehouses (think London Docklands) and creating the new ghetttoes, restricted this time to the affluent middle classes.

French property searching: the 'bon de visite'

Quite often the question arises about the 'bon de visite' - it's role and validity in the French property searching and buying process. Here I try to explain briefly.

When an owner decides to put his/her property up for sale, he has a number of options -  to try and sell it privately, or to place the property with one or more state agents; or to use a combination of the above.

If you decide to use an estate agency, as owner you will agree a 'mandat de vente' under which the agent agrees to market and try and sell your property, against an agreed commission, based on a percentage of the sale price. If you use only one agent you can sign a 'mandat exclusif' under which the agent has the sole right to market your property, and even if you attract a buyer yourself, you normally expect to pay the agent a commission - or at least an agreed portion of it.

If you want to use use more than one agency, you can sign a number of 'mandats simples' - and indeed include in the contract the right to try and market yourself. This alternative can give rise to confusion and even disputes where it is unclear which agent 'first introduced' the client to the property and is therefore entiled to his/her commission in the event of a sale. Hence the 'bon de visite'.

When a potential buyer buyer walks into an estate agency to help find a suitable property and is eventually taken on a number of visits, he/she will sign a 'bon de visite'. This is a simple document which includes and name and other details of the potential buyer,  and most importantly a list identifying the properties visited with the agent. In the event of a dispute over commission or who first introduced a buyer to a property, the 'bon de visite' becomes part of the evidence.

Note throughout all this, that it is the owner/vendor who is bound by the terms of the mandate which he/she signed with one or more agents, and not the buyer. A vendor who is in breach his agreement with the agency, for example by not paying the agency's commission when the agency has fairly secured a sale, can be subject to prosecution through the courts and subject to costs and damages.Note finally that a vendor who has signed one or more 'mandats simples' will find that among their conditions is the obligation to notify the agency of a buyer either introduced by another agency or privately. 

Research - before you buy!

An interesting and enlightening report in my local newspaper L'Idependant this morning. It concerns the city of Carcassonne - 44 000 pop., head of the Aude department, a historical walled city popular with visitors, but there is a property crisis.

Apparently there are 4 000 empty apartments seeking tenants and representing some 14% of the housing stock. Unfortunately they are the products of numerous buy-to-let government subsidised investment schemes dating from 2000 onwards and designed to promote the construction of low-cost apartments. Unfortunately, as in many areas of France, the Carcassonne apartments were built on cheap former agricultural land, remote from public transport and other services, and in places no-one wanted to live because of the absence of jobs.

My own researches show that in over 50% of cases 'investors' failed even to visit the area where promoters encouraged them to sink their money, and few if any actually investigated the market potential for low cost rentals, by talking to local estate agents etc. As a result many are now the owners of a property they can barely afford to pay for, that is impossible to let and near impossible to sell, for all the above reasons. In the Carcassonne case, the town hall is talking of taxing owners to force them to rent their properties......

What these examples show is that it is absolutely essential to conduct your own researches on the ground, particularly if you are thinking of buying any kind of property from which you hope to make money - a café/restaurant, bar, rental apartment, shop, B&B etc. Never, ever rely entirely on the brochure!

Thinking small!

Having just moved from a Mediterranean beach studio measuring 20m² (215 ft²) plus balcony to a slightly larger a mini-loft (29m²/312 ft²) in the nearby town I am always fascinated by how other people live, particularly when it involves 'downsizing' and occupying a small space. I believe in occuping the smallest area convenient for my needs and have a horror of paying any more than necessary in charges, taxes or heating bills.

If you too are a minimalist and prefer living in a small space, there are a number of sources I would recommend that have given me a great deal of inspiration over the years and a wealth of practical ideas on how to best use a small space. My two favourite websites are:

faircompanies.com - in English and Spanish and specialising in up to date case studies of small apartments, conversions, urban and rural living and all illustrated through short videos from 5 to 20 minutes in length.   Two recent examples include an apartment conversion in Barcelona, designed for sharing by two friends or couples (or a single family) and measuring just 65m² (700 ft²). The apartment shares a common living/kitchen area plus two separate sleeping/living areas each with its own bath, which can be closed off for privacy or left open.

Another case video study shows a former American shopping mall (arcade), with fashion boutiques and a coffee shop on the ground floor level, and above a series of min-studios (from 21 m² / 225 ft²) which are let mainly to singles at economic rents for this highly desirable city centre location. All the furnishing are built-in and include a kitchenette, double bed, a living/work area and storage. All the apartments were quickly let within a matter of days and all the occupants emphasised that they were exactly the sort of space they were actively seeking. On the ground floor, a number of the boutiques are shared by more than one occupier, with an average of six fashion designers coming to together to jointly promote their clothes.  The owner/developer hit on this idea of concentrating on fashion in order to attract more customers to the mall which had been left decaying for years.

humble-homes.com - As its name implies this website concentrates on all types of small living spaces, including apartments and houses from all over the world, both new and converted from older buildings. Another source of inspiration, with coloured photographs and floor plans.

Property searching

As well as selling my existing home, I am also starting to search for another apartment - this time away from the coast and in the nearest large town. Despite - or perhaps because of - the slowdown in the French property market there is a huge choice of small apartments of the sort I am looking for. And after a couple of frustrating weeks, literally overwhelmes by the wide selection on officer, I decided that in order to save time - and stay sane - I must revise and stick to my list of requirements. I hope it may help others caught up in a property search. My advice to myself is:

- Accept there is a huge choice, draw up a list of what is acceptable and what is not - and stick to your rules!

 - Best concentrate on one or two selected areas, get to know them through regular visits, and decide if this is where you would actually be happy to live. Visit at different times of day/evening, at weekends, literally check out you possible future neighbours!

- Look at For Sale boards (agents or private sellers), LeBoncoin etc and spend time looking at potential properties from the outside before even arranging a visit, to see how they fit into the area, and may put you off - a noisy street, a bar opposite, absence of parking etc. These are the sort of things you cannot change, and you need to decide if they are unacceptable or you could live with them.

- Look at the general condition of the property - outside painting, state of the front door, are there hastily printed names next to the doorbells indicating high turnover of occupants etc. Look at the state of Windows and curtains, also cars parked outside (always a reliable indicator).

- My practical half tells me I should buy a ground floor property (looking ahead to old age etc) so I tell myself to stop dreaming of attics and lofts!

- How small? How large? Given that every square metre costs money in taxes, charges and heating bills, be realistic about how much space you really need. Maybe now is the ideal time to review how much 'stuff' you own and start paring down your possessions.

- Looking ahead, just in case, is the property resellable? I like atypical properties - former shops or workshops, lofts etc - but atypical properties need atypical buyers if you have to sell in the future.

- Agents' détails often miss out the most important things and even before visiting you need to have your own checklist - what floor is the property on, taxes, management charges, future works planned for which you will have to pay, are the building managers a large company or is the property managed by a group of volunteer residents?

And when you finally get to look Inside:

- Remember that floors, walls and ceiling can be changed; a new kitchen or bathroom installed - factor in these potential costs.

Good hunting!



 

French property prices in 2014 - mixed views

There appears to be a mix of views of where French property prices are likely to go in 2014, although contrary to populist views in the British press of untold bargains to be had, French predictions are considerably less exciting.

According to the most recent report* I have read, Standard & Poors predict an average fall of 4% and two major French banks - Crédit Agricole and Credit Foncier - between 4 and 5 per cent. The French estate agents association FNAIM talk of 'not more than 4%' though agency chains predict a more modest drop in prices - Century-21 1.8%, Laforet less than 2% and Guy Hoquet between 0 and 2%.

Historically, there were average falls of 3% in 2008 and 7% in 2009, but average rises of 10 and occasionally 15 per cent were recorded in some French cities during 2010. According to Notaires de France, the average fall in 2013 was 1.7% overall.

Transactions are still down on the average 829 000 recorded annually in the boom years between 1999 and 2007, with a total 723 000 transactions recorded in 2013, 2.7% fewer than in 2012.

As always, price rises and falls depend on numerous factors, such as the age, condition and location of the property; and no two properties may be the same even within the same area, even the same street. It pays to keep an open mind and listen to the advice from professionals on the spot.

* sofinscope.actu.orange.fr

What buyers like and dislike - survey

According to a Survey published in the Daily Mail* abd conducted by a property website** among 2000 house-hunters, the following features are most frequently liked/disliked when viewing a property with the intention to buy:

Attractive features:

Fitted kitchen (36%)
Granite kitchen surfaces (31%)
Wooden floors (23%)
Wood burning stove (22%)
Concealed appliances (21ù°
Neutral colour scheme (20%)
American fridge-freezer (16%)
Aga range/cooker (18%)
Heated towel rails (16%)
Roll-top bath (15%)

Unattractive features

Woodchip wallpaper (39%)
Mirrored ceilings (36%)
Nude portraits (35%)
Avocado bathroom suites (31%)
Taxidermy (24%)
1880s DIY painte effects (rag olling etc) (20%)
Strip lighting (17%)
Artex ceilings (16%)
Themed rooms (12%)
Hot tub (11%)

What I found surprising about the results, and was confirmed by some of the reader comments, is that most of the features which are liked or disliked are primarily 'cosmetic' and could be changed or installed by the new owners (decoration, kitchen fitments etc) or might not even be left behind by the vendors (such as kitchen appliances). Also there is no reference to aspect, location, neighbours, state of the building fabric etc.

Some of the dislikes are regularly mentioned on French TV programmes such as Stephan Plaza's 'Recherche Apartment ou Maison' including stuffed animales, displays of fire-arms and virtually any extremes of decor, themes (Western, 1950s etc). The advice as always is to present a neutral, bland interior designed to appeal to the widest category of potential buyer.

On another note, I have just been reading a similar US Survey*** on what Americans like or dislike about (other people's bathrooms). There were over 170 reader comments, on burning issues such as when the loo seat should be left up or down or whether a (lidded or not) trash can should be installed.

Reading this article I think I learnt more about the American psyche than you could possibly learn from years of study.

Sources: *dailymail.co.uk  **needaProperty.com  ***apartmenttherapy.com
 

New French property legislation

Then French government has finally approved legislation which offers even more security for tenants in unfurnished properties in certain designated cities, including Paris, Marseille and Lille and several designated towns where housing is considered critical. There is also some help for landlords in the private sector with plans for a state funded insurance guarantee against unpaid rentals, for a maximum of 18 months and starting from January 2016.

Within the designated towns, local authorities will determin a mean rental to be applied to different property types (studio, two rooms etc) and by quartier , which will become the standard. The housing minister Cécile Duflot predicts that this will lead to widespread rent réductions. The new leglislation clarified what information a landlord may ask a prospective tenant to supply before offering a rental contract.

Mme Duflot has also attacked the lucrative short-term rental market, composed of the many attractive furnished studios and small apartments, currently rented for as little as a seekend to tourists in cities such as Paris. These rentals are extremely popular with visitors as an alternative to hotels but have caused problems in blocks occupied by a mix of long-term residents and short-term renters. Tourist hotels have also complained of loss of trade. The right wing newspaper Le Figaro has suggested there will be a large-scale exit of investors in this type of property to countries such as Spain with more flexible regimes. If so this may free up a number of desirable small properties in central Paris.

Disclosure by estate agents?

A recent post on a property blog* has raised the interesting question about the extent of an estate agents' duty of disclosure when offering a property for sale - how much of the bad news must he revealed to a potential buyer, particularly in the wake of the serious flooding in Britain and South western France. The question arose in response to one about the effects of the new UK 2008 consumer protection legislation on estate agents' property descriptions.

It is a question often raised in France and one that I have had to wrestle with, both during my time as a sales negotiator in a French estate agency, and more recently as a property consultant/advisor. French consumer law offer a number of built-in protections to the potential buyer and even at the stage of the pre-contract of sale (known as the 'compromis de vente') and usually running to more than 50 pages, a lot of information is written about the property.

This includes its history, its reference on the 'cadastral plan' and a copy of the expert report prepared by a specialist (paid for by the vendor) which describes the state of the electrical and plumbing installations, and the presence/absence of termites, lead, asbestos etc and an energy efficiency rating if there is a fixed heating system installed.

In addition the Notaire handling the sale will normally include information about zones liable to flooding, landslides, earthquakes etc when he does his detailed searches as to title.

It seems that the British legislation goes further than this, with an obligation to point out factors such as proximity to a motorway or a noisy factory or school, which might detract from the value of the property being sold. These are aspects that may not be pointed out by a typical French estate agent and indeed in the final sale document the buyer is warned that he/she 'purchases the property at his own risk and in the state in which he finds it'.

This puts a lot of the onus on the intending purchaser or his advisor to extend their researche into the wider location of a property, something which many buyers fail to do in the euphoria of discovering their dream home.

*Source propertynewshound.com