French Property Tax

When buying in France, get to know two local taxes in France which you will have to pay if you buy a property in france. If the property is sold during the year, the seller and the buyer often agree to share the tax.

Taxe d’habitation is a residential tax (or rates) and is paid by the occupier of the property.
The taxe d’habitation is:

• payable to your local council for the provision of council services (e.g roads and rubbish men e.t.c)
• based on the notional rental value of your property; this rate is often substantially lower than the market rental value
• payable on January 1 by the person who was the occupier at that date
• payable if a home it is furnished and supplied with water and electricity
• is calculated by multiplying the net rental value by a locally fixed tax rate
• calculated on the surface area of the house or apartment, the construction and amenities
• paid in one lump sum or in ten monthly installments from a French bank account
  exempt for over 60s, if the property is incapable of occupation, and for low income households
  

Another property tax is the taxe foncière, which is paid by the owners of a property or land.
The tax foncière is:

• a land tax: this tax is even payable on un-built land
• calculated by reference to the notional rental value of the premises
• reduced accordingly for second homes
• exempt for two years for newly built homes
• TVA free
• payable unless it is being used for agricultural purposes.

Please check the information section on the Homehunts website for more details on french property taxes

http://www.home-hunts.com/

Is there any land left in St Tropez?

St Tropez has often been referred to as the jewel in the crown of the French Riviera. There are still many interesting properties to buy in the area, either as holiday homes, or as primary residences. The most sought after positions are St Tropez, Ramatuelle, and Gassin, with surrounding areas of Plan de La Tour, La Garde Freinet, Ste Maxime, and St Raphael also offering exciting investment possibilities. However, what is there for the property developer, or the private individual who wants to build his own dream house? Home Hunts, the South of France Property Search Specialist went on a journey to discover what land possibilities there were in the heart of the Cote D'Azur.

A client came over to St Tropez last week looking to buy land. He had found a good plot in St Raphael for 350,000€, which he could build on (400,000€) and then sell for 1-1.2m€. Unhappy with the potential margin, he started to look with www.home-hunts.com in search of better margins.

We looked hard for a week and most immobilier told us that there is no land whatsoever to buy in the St Tropez area with a sea view. Most of the best positions were taken up by people moving to the Cote D'azur thirty years ago; they built then, and the property is either kept in the family, or sold for large sums of money. These peoperties now are 30 years old, and can be "renovated" - ie smashed down and rebuilt new. However, the prices will not allow the builder to make much money. So what interestes are there in the St Tropez area for the property developer?

What are we looking for?
1. They are looking for a piece of land with a sea view. Why? Because it is a sure bet for resale, and rental income if it does not sell.
2. A good sized plot where you can build a big house 250m2 plus. Remember there are different laws in different areas depending on the percentage of land you can build. Usually it is 10%, but can be as low as 7% and as high as 15% in some cases.
3. The golden triangle; St Tropez, Ramatuelle, Gassin. These areas are sure to sell quick, and property developers need to sell quick.
4. Flat land; sloped land can be built on, but you are putting more money into the ground than on top of it, which may or may not be built into the sale price.
5. As much land as possible, so a large house is not squashed in a small plot. The house should be built south facing, with as much of the view as possible.
6. Not overlooked by other properties.
7. Private Domain for security.
8. Close to local shopes despite an exclusive domain.

What we found
Plot 1: St Maxime 2500m2 660,000€
This plot looked fantastic, with a 180 degree sea view, looking over the golf courses and with St Tropez in the distance. Near the golf, in a safe private community, and 4 minutes drive to the heart of town. The land was 2500m with quite a large slope. Not overlooked, with neighbours on both sides, but facing in a different direction. The problem was that you could only build SHON (i.e. living space) 185m2, as it was the last plot on a private community. Build costs would be high (500k€) as it was on a slope, and resale would be only about 1.2m€max. Profit would be very little even if it was sold straight away.

Plot 2: St Maxime 2500m2 1,100,000€
This plot had the same incredible 180 degree sea view and was in a private domain. Land was flat, and you could build 15% and at 7m. This made for a 350m2 house, which would be excellent. Build costs would be relatively lower at about 700,000€, and a new houses in the area were selling at 3.2m€. This looked like a much better margin. Not in the golden triangle, so a quick sale would not be as likely as say St Tropez/Ramatuelle.

Plot 3: St Tropez 6600m2 1,370,000€
This large flat plot with and existing house of 110m2, and great garden with lots of pine trees. 6600m2, with a SHON of 182m2. You can old build 3.5m high due to restrictions, but the house could have large terraces and a lage garage underground. The house would be built south facing, at the back of the garden, and would give to a majestic feel. 1.5km to the beaches and in a nice private position, not overlooked. Build would cost 700,000€, and resale would be potentially 3.5m€. In the golden triangle, but no sea view.

Plot 4 Ramatuelle 3500m2 1,800,000
Small plot with an existing house. Building permits for 350m2, but resale despite being close to the main St Tropez beach, and in an exclusive area, would be 3m€ max. No sea view. Build costs would be large, as the the land is on a slope; 800,000€ would be an estimate build cost. Would suite soebody who wanted to buy in that area, and build their own house, but only a very small profit could be made, if at all.

The two interesting plots for builders were the 2nd two, and quite a fair profit could be realized with these projects. These are available for sale on www.home-hunts.com, but you would need to be a professional.

There are still plots of land available in the St Tropez area, for individuals who want to build their own house, live in them, with the profits being realised in 5-10 years. There are also plots available for builders to turn over at a quick rate.

www.home-hunts.com can help you make the right decisions when buying land, as there are quite a few obstacles to overcome when finding the right plot. Home Hunts have English and French builders who can help you with your project. Please e-mail rumble@boardnlodge.com for more info.

Place to stay?

Looking for a peaceful and charming place to stay during your trip to the South of France?

A warm welcome awaits you at LA PARARE, an old stone “bergerie” nestled in the hills behind Nice dating back to the 18 th century.

www.laparare.com

The Rolling Stones come to Nice

August 8th 2006 - Palaiz Nikaia - Nice

The Rolling stones European tour 2006 stops in Nice.

http://www.rollingstones.com/abiggerbang/

Information - South of France

A useful website for local information in France http://www.beyond.fr/

The web's leading English language source for travel in France, with maps, travel information, hotels, photos, and detailed sections on villages, gastronomy, wine, sports, trains...

Chopper Taxi Cote D'azur

St Tropez Helicopter - Helicoptere Saint Tropez

Villages in the Var

La Garde Freinet
La Garde Freinet is a quiet village nestled in the oak and chestnut forests of the Massif des Maures found 25 km from St Tropez. While in a hushed location, this attractive village is a gateway to the Gulf of St. Tropez via Le Luc. As old as the 11th Century, the stone houses, old fashioned street names, and the intimate village square create a special atmosphere. The famous Chestnut Festival in autumn sees this quiet little village come alive with local folk coming from many little hamlets outside the village: (Mourre, Cour, and Val d'Aubert) to take part in a this village “fete.”The peaceful feel and the surrounding naturehas attracted bohemian writers, and artists making the town even more "funky."

Plan de La Tour
Plan de la Tour is a quaint unspoiled wine village which dates back to medieval times. When you walk through the cobbled streets through tiny streets you get a real feeling of France. The village church is central to the village and appears over the pretty tile roofs as you enter Plan de La Tour. It is set on a plateau between the vivid peaks of the Massif des Maures. Plaines of vineyards are broken by fantastic provencal villas, and the setting is peaceful. St Maxime is only 9kms away, and St Tropez a further 18kms. 18 “hameaus” satellite Plan de la Tour and the stars are hidden here with Sean Penn having his home here.

St Raphael&Frejus
St. Raphael is the Var city where tourism meets business. St Raphael and Frejus merge into
each other on the Mediterranean to form a large happening centre on the cote d’azur. The volcanic Esterel Mountains which are thought to be a part of the African continent of old are a vivid backdrop, and beaches west of St Raph have fantastic red rock. 13,000 hectaries are protected, and haven for trekkers, and nature enthusiasts.With 5 different harbors, St. Raphael is known for sailing and is the a great place for boating enthusiasts. Along its 40 kms of coastline you can discover sandy beaches, creeks, and inlets, all carved out of the famous red rock of the Esterel Mountains. “You will be able to discover traditional festivities in

every season. There are joust tournaments, celebrations of St. Baume and St. Pierre, Mimosa Week, Jazz festivals, and other typical St. Raphael entertainment”





St Tropez

St. Tropez became "St. Trop" when the show business people, artists and writers all fell under the spell of this charming little port in the 1950's. In the summer one could bump into Picasso, Francoise Sagan, Jacques Prévert and many others, With the arrival of Brigitte Bardot in the 6O's the myth was installed for good. Since then St. Tropez has become the in vacation spot for chic Parisians and the international Jet Set. Night life is very lively and often one can see helicopters bringing elegant guests to private parties in one of the many luxurious villas on the bay. People watching is a favorite sport here in the summer, Visitors like to sit at the outdoor cafés hoping either to be seen or to see some one else. Competition is rife. Huge yachts line up in the port rivaling to see which is the biggest, the prettiest, the best kept, or has the snappiest crew . Only beautiful people hop on board. It is quite a spectacle for the casual visitor!
If you have the choice come here in May, June or September, without the crowds one can take the time to admire the charming little streets and alleys. Early in the morning at the Place aux Herbes one can find fruit vegetables and flowers and watch the local fishermen selling their new catch. This is also the neighborhood of the famous brasseries Le Gorille and Sénéquier. A typical Provencal market is held every Tuesday and Saturday morning in the Place des Lices. Religious and festive processions called "Bravades" are lively celebrations which begin in May and continue until the 15th of June.

Ste Maxime

Ste Maxime is a fun family beach town which faces St Tropez across the Gulf. Sainte Maxime faces straight south and is sheltered from the winds by the Maures Mountains. The nightlife is full of people music at Le Wafoo, and Markets in the main town square. The wonderful weather and the beautiful location make it the ultimate holiday destination with lively pedestrian streets. The beaches right across Ste Maxime and out towards St Raphael: La Nartelle.

Weather in France

Check out the weather in France by following this link:

Francopats - France's Expat Website

This should help when organising your property visits to thej South of France.

Languedoc Roussillon

HomeHunts do not just find property on the French riviera or in Provence, Var or Luberon areas.

We also have a team of consultants in the Languedoc Roussillon regions. If you are looking for a property in Perpignan, Montpellier, Toulouse, Carcassonne, Nimes, Uzes or any location in Languedoc Roussillon then get in touch.

Buying a property in the South of France

The French buying process – Important information

The process of buying any type of property or land in France is strictly regulated. HomeHunts are here to offer advice through every step of this process but you need to know what to expect ahead.

Firstly 1 you should decide how you will buy your property.

There are three 3 options:

1.

Buy for cash - a straight forward option, but once capital has been invested in a French property it can be difficult to release equity.

2.

Re-mortgage your main home to raise the cash - again, a straight forward option and one that doesn't involve you having to deal with any French banks, but you will probably find that the interest rates charged by lenders in other countries may be higher than interest rates in France

3.

Finance your property with a mortgage from a French bank or lender.
Prepare yourself for the initial costs
Whether you are buying for cash or with a mortgage, there are some costs you are going to have to fund yourself.

The Deposit - On the day you sign the Compromis de vente (the sales agreement contract) you will be required to pay your deposit, usually 10% of the purchase price for older properties. It is advisable to pay your deposit cheque to the notaire or agent who is representing you and not to the vendor. The deposit is held by the notaire/agent until completion.

Notaire fees - For an existing property, be prepared for 7-8% of the purchase price as the cost for the legal fees. For a new build property, assume 4% of the purchase price. In addition to the notaire fees, there will be the land / property registration fee which varies from region to region. Notaire fees can only be included in the mortgage for French tax payers. If you pay tax in another country, you will have to fund the notaire fees yourself.

Agency fees – The agents selling fees are usually between 5% and 10% and this amount is normally built into the sales price. The vendor usually pays the agents fees from the sales proceeds but there is no hard or fast rule. The important thing to make sure that the price stated by the agent is the price you pay, your HOMEHUNTS consultant will be able to confirm this for you. If you are raising a mortgage you can include these fees in the loan if the agency fees are stated in the Compromis de vente.

Mortgage deposit: The minimum amount you need to provide as your deposit for a mortgage depends on your nationality, the country you live in and where you pay income tax.

For tax payers in France it is possible to arrange a 100% mortgage. For UK and EU residents and tax payers the minimum amount of deposit is 15%. For residents and tax payers in non EU countries, the minimum deposit is 20%

Arrangement fee: All of the French banks and lenders charge arrangement fees. Most charge 1% of the amount of the mortgage, many with a ceiling limit of 1500 euros, but it is advisable to check because they do differ from each other and some do not have a ceiling limit at all, so you may end up paying 1% of the total mortgage.

Bling Villas

House for a King!

Fantastic property for sale in La Garde Frienet

Splendid newy built villa, coming with all the assurances of building insurance, and lower notaires fees. 2641m² of ground with great view over the forests of La Garde Freinet. Huge living area overlooking the pool, with logical pattern of luxury bedrooms and bathroms leading off the main area. There is an office on the mezzanine overlooking the main area and pool.4 bedrooms in total, but a fifth bedroom could be put in very easily; all are large. 1 master bedroom with dressing, WC, and luxury bathroom. Poolside terrace is under roman style arches. Washroom, garage for 2 cars, swimming pool. Check www.home-hunts.com
947,000€.