bit of info to come over; prices will continue to go up as in real estate.
purchases of real estate in Paris is done by 8,2% of foreigners;aka slow travelers... year end april 05-06 the best arrondissements are in order of volume the 15,18,and 16. the biggest buyers are the Italians!!!yes they like Paris!!! 19,5%,then at 11% British 10,8% Americans in Europe the average price for capital cities of an apt/housing is London 478K Euros Luxembourg 475K Dublin 368K Madrid 357K explosives!! Bern 335K Stockholm 325K Paris 298K not bad ain't it? Brussels 217K Berlin 182K Prague 106K as the study was conducted by the ERA real estate chain no info on Italy as they have no offices there yet.
Across all of France, average prices for apartments in "ancien" - older buildings - actually declined in August, according to FNAIM data. But Paris stands apart - and no one expects any market correction to be too large.
And the English are still buying country homes en masse. Prices in the countryside are far far lower than comparable homes in England, for example. So it's "cheap" for them, but the consequent demand pushes the prices up for local French people.
Recently a friend sold her fabulous 19th-C maison bourgeoise with several farm-buildings and 3 hectares of land (7-ish acres) for €300,000. This translates into US$375,000 or something like GB£210,000. And it wasn't even in the 'deep' countryside, but at the edge of a village which had a grocery, pharmacy, bakery, etc. And it's 20 minutes drive from a bona fide town, 20 minutes further from a real city.
Posts: 473 | Location: Bayeux, France | Registered: 01 December 2001
yes but my numbers are for a whole year. on avg they will go up. I remember buying near disney in the late 80's for 80K equiv euros and now huh; i wont say. Its the same everywhere, back in 1973 my parent bought a house in New Jersey for 40K dollars; they sold it in 1985 for 170K USD: thats the beauty of real estate. In Florida, we bought a beach house for 43K dollars when I left the area further south in 1991 we sold it for 275K USD
I wont say more because i do consulting on it in France independent. That"s the beauty of real estate/Europe is going through that too
absolutely in the dordogne/aquitaine are they are towns run over by the British and the French beginning to offer service in english like in Bergerac where i have friends. Another british friend bought a castle in Normandy just about 6 mos ago!!!
quote:
Originally posted by Normandy Dude: And the English are still buying country homes en masse. Prices in the countryside are far far lower than comparable homes in England, for example. So it's "cheap" for them, but the consequent demand pushes the prices up for local French people.
Recently a friend sold her fabulous 19th-C maison bourgeoise with several farm-buildings and 3 hectares of land (7-ish acres) for €300,000. This translates into US$375,000 or something like GB£210,000. And it wasn't even in the 'deep' countryside, but at the edge of a village which had a grocery, pharmacy, bakery, etc. And it's 20 minutes drive from a bona fide town, 20 minutes further from a real city.
Les prix sont exprimés en euros par m2. Les % sont exprimés par rapport à la même époque de l'année précédente. En collaboration avec Se Loger.com/ 2006
The Sunday-Monday edition of Le Monde reports on the French real estate market, and the views covered are markedly mixed. The Bureaux d'Informations et Previsions Economiques predicts a France-wide decline of prices in 2007 of 3 to 5 percent. The Federation Nationale de l'Immobilier (FNAIM), real estate agency professionals, sees a price rise in 2006 and 2007 of 5 to 7 percent, less than preceding years.
Clearly, the dramatic price increases of the past eight years, over which prices rose 120 percent, are slowing. During that period, liberalization of bank lending practices helped to drive prices. Twenty years ago, the maximum term of a mortgage in France was 15 years. Thirty-year mortagages now are available. This has increased "purchasing power." Interest rates have been, and still are, historically low, though they now are creeping up.
In Paris, and to a lesser extent elsewhere, there's a two-tier market. A significant number of non-French people can and will pay prices for choice property that most French people cannot, or will not, pay. Given the national differentials in prices that Pedmar has detailed, this would seem to be the sector of the market with the most upside potential.
I have less faith in any important upside potential of the rest of the market over the next five years. With interest rates unlikely to be lower and lending policies already quite generous, the majority of French people are unlikely to be able to pay much more to purchase housing. (Le Monde's perspective is that over five years starting now, the better move economically would be to rent.)
A cooling of the market can only be good for buyers, allowing more time for decision-making and even some room for negotiation.
My own take is that for all but the wealthy who can afford exceptional properties, intangibles like the satisfaction of ownership of a "little bit of France" and, for those who can spend enough time here, quality of life, need to be a highly important part of the mix in a decision to purchase now.
yes of course the spiral of prices cannot be maintain forever; but it is exactly this slowdown sort of: that gives investors and foreigners theedge to buy now at stable prices so they can reap the benefits later; real estate in any country has always gone higher with time. The French are now buying into new property better finance, near the beach in bordeaux you find Apts of 3 and 4 rooms(piéces) for less than 200K euros and finance with no money down for 290 euros per month. I cant mentioned outfits but many constructors in FRance are now doing this; even doing American style neighborhoods n the Yvelines dept 78 new. My contention is that we will continue to see rises but in the 3-5% range over next year overall and in some areas of demand like dordogne,normandie, aquitaine it will be in the 7%.Paris is diff and that it always gets the biggest lift from foreigners and Italians are en masse. Surprisingly the habitual Americans are taken back by the wide margin on the exchange rate but at higher ends they are still there.
I like your Normandy forecast! Honfleur prices are a bit of a curiosity to me now. In the early '90s peak, they were nearly as high as Paris. Not the case now, so do they have quite a bit further to go?
yes lucky you! I am looking at a property near Cabourg now.
quote:
Originally posted by Happy in Paris: Hi Pedmar,
I like your Normandy forecast! Honfleur prices are a bit of a curiosity to me now. In the early '90s peak, they were nearly as high as Paris. Not the case now, so do they have quite a bit further to go?
The Sept. 7-13 issue of L'Express also focuses on real estate, and here, too, there are curiosities and some notes of caution.
In Paris, a graphic that accompanies the lead article reports price increases (and decreases) in "ancien" (old building) apartments from April 2005 to March 2006. The Place Vendome sector of the 1st arrondissement is shown in decline, -0.8 percent, the Champs-Elysees sector of 8th arrondissement also down, 0.1 percent, while the Bonne-Nouvelle sector of the 2nd arrondissement shows a 22.1 percent rise, the Folie-Mericourt neighborhood of the 11th arrondissement a 20.5 percent increase, and the La Villete and Pont de Flandre sectors of the 19th up 21.2 percent and 21 percent respectively.
What these figures suggest is a rush of buyers to Paris neighborhoods that are (or were) still relatively affordable. Where do less than wealthy prospective buyers go next? (Some go the near suburbs, where prices also have risen sharply in the last several years.)
One curiosity is the flattening of prices, obvious, for example, in the 11th arrondissement, which is shown nearly uniform in price per square meter from neighborhood to neighborhood, around 5,000 euros, when in the near past there were sizable differences, especially between the surrounds of Place de la Bastille and other parts of the arrondissement.
This is one sign of a mature market, as is the lengthening of the time that properties remain on offer and anecdotal evidence of asking prices negotiated downward.
"The end of euphoria," the Express headline on the Paris-market article reads. That sums it up well, I believe.
ha ha ha thats why i do not read populars like L'Express. I am doing with specialists and investors; if the ancien is a big off they go for the new with tax advantages;if one goes down they do the other: I am talking about investors not the one shop buyer.Place Vendome is not much to buy anymore not avalaible the Sultan of Brunei bought the entire block off the min de justice and the Ritz facing the tuileries side about 3 yrs ago. His type are still searching.
The average person is looking into the banlieux as far as where I live I see more and more licence plates 75 and 92 because housing is more affortable than Paris. But then again in Paris the buyers are foreign investors mostly from Italy who find it cheaper than on Italy. Just like the UK buys in the southwest (their old area) and a lot cheaper than in UK.
My thread was just to inspire this sort of dialogue; real estate goes up no matter where with time.Its a great investment. Look at Madrid at 357K euros avg; i lived there in the 1970'S you could had them for 50K!equiv euros: and I am sure if you buy now and wait another 30 yrs it will be worth 600K!
Yes, for French taxpayers, especially high-income taxpayers, there are numerous write-offs in real estate investing, though in a dozen transactions over two decades here I've managed to take advantage of none of them!
At one time I was highly tempted by huge writeoffs for purchases in the French overseas departments, but Aralynn is not an "island in the sun" person, even though St. Bartholemy, rather a special case, beckoned with its Dutch-treaty-imposed income tax rate of 0%!
Back then, a rather nice new four-bedroom villa with a broad veranda, breathtaking from-up-the-hill sea view and easy access to the beach could be purchased for about a million francs. I'd rather not know what the going price is today.
France also is appealing for real estate investors because property taxes are still very low - almost a gift, compared, for example, to the United States.
Yes, for French taxpayers, especially high-income taxpayers, there are numerous write-offs in real estate investing, though in a dozen transactions over two decades here I've managed to take advantage of none of them!
how so, i have already benefits on plus value /capital gains sort start after you hold property 5 yrs and up after 15 you pay nothing of the dreaded 26% tax. On one property my father bought near Bordeaux on the medoc side, he is deducting the interest he pays for the mortgage as per the loi Robien this is not an endorsement but i use them http://www.b2-conseils.com/a-propos.htm
and since most respondent to this thread live in France, especially Americans i belong to AARO in Paris. we have a tax seminar on 7 november 18H30 1O euros for members 15 euros for non members at 34 rue de New York; metro iena or alma-marceau. I will be there for sure.
Local taxes in my town are up 25% this year -- BOTH taxe d'habitation and taxes foncières. BRUTAL! Time for Howard Jarvis's ghost to appear!
Those who can afford it can afford anything: buying a nice apartment in a nice Parisian neighborhood, but then living there only a maximum of 5 months and 29 days per year -- or risking enormous tax consequences (income, ISF...). Count out 99.99% of the population!
Posts: 473 | Location: Bayeux, France | Registered: 01 December 2001
Yes, the local taxes are that "other shoe" that I've long been expecting to drop (read "rise") and Normandy seems to be a leader. In Honfleur, we're now paying neary triple in property tax - for a 65-square-meter cottage with a 24-square meter terrace - what we are paying in Burgundy, for a 116-square-meter house, not counting attic space, and 1,600 square meters of land.
wow 25% is awesome high!!! mine went up 7% but hey i get it back in net worth its real estate we are talking here; never heard anybody losing on it I guess i am meeting another kind of investors and i am happy to do so. one of my American friend in Paris just told me her apt cost her about 150K euros 15 yrs ago and now she sold to go to a smaller one ;sale price 495K euros; she gets to pay zero plus value( capital gains) not bad.I think.my opinion. but then again i love real estate, former realtor in NJ and Florida USA :million dollar achiever.
more thought for the fire on Paris alone variations are nice...double digits!!!INSEE figures.
Les variations annuelles restant, quant à elles, à deux chiffres, sauf dans les 6è, 8è et 16è arrondissements de la capitale.
L'arrondissement le plus cher est le 7è, avec 8 162 €/m2 (+16,2%), suivi du 6è avec 8 099 €/m2 (+9,9%), du 4è à 7 569 €/m2 (+14,6%) qui reste devant le 5è à 7 294 €/m2 (+17,9%) et le 1er à 6 879 €/m2 (+16,1%), devant le 8è à 6 665 €/m2 (+9,4%), et le 3è à 6 324 €/m2 (+14,0%).
À l'opposé, l'arrondissement le moins cher demeure le 19è à 4 456 €/m2 (+19,1%), suivi du 20è à 4 675 €/m2 (+18,3%), du 18è à 4 760 €/m2 (+13,0%), du 10è à 4 943 €/m2 (+15,7%) et du 11è à 5 153 €/m2 (+10,9%).
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