November 2014 French Property Mortgage Rates Drop Again

If you are seeking to buy a French property we have good news.

Fixed rate mortgages dropped again in the month of October according to the latest news from Crédit Logement CSA

The French real estate fixed mortgage rates are now on average at 2.50 percent.

There has been a rapid decline since the end of the summer.

The average fixed rate for the purchase of a pre-owned property was 3.08 percent in December 2013 and now it is 2.48 percent.

You can take advantage of this right now if you are buying or refinancing a French property by contacting your mortgage broker. If you would like a second opinion from an English speaking French mortgage broker contact us today for guidance.

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Potential New French Property Tax to Tax Foreign Owners

Due to the French government having a budget deficit President Hollande and his government are this month (November 2014) debating the creation of a new tax on secondary residences that are not occupied.

According to the news article on BizNews located here the French government says the new levy is meant to force owners to rent or sell their property as Hollande’s ministers pledge to free up the thousands of unoccupied homes.

Read the full article in English here.

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French Property details in English about Fosse Septique septic field

When you buy a French property at this time the seller is legally obliged to provide a formal report on the condition of their private drainage facilities (fosse septique / septic field) and this report must be by the local inspecting body.

Note: Rules change a lot in France to be up to date on rules visit http://www.notaires.fr/en and contact your English speaking notary

At this time the report must be no more than three years old when the sale is completed.

Note: this is no more than 3 years from the day the sale is completed not the day of your offer so be aware of all the timing.

What is in the report?

The Fosse Septique (Septic field) report shows in detail a plan of the field and how it has been set up. It should also include details of its maintenance.

Results from a study can be anywhere from the field conforms, the field needs works, the field does not conform, the field does not exist and in the worst case there is a health risk or environmental risk.

At this time when a property is sold and the seller is selling a property with a fosse septic that is not conforming the new owner has one year to do the necessary work. This work can be very expensive. Consult you notary for advice.

Best advice for Sellers: once you have decided to sell your property get the fosse septic inspected and get it to the required standard.

Best advice for Buyers: ask the seller for the report and if there is not a report or bad news about the condition of the fosse septic you have to decide do you want the seller to do the work or do you want to do the work yourself after a price reduction. Make sure you get advice and budget accordingly.

If you have questions make sure you contact your English speaking notary and the local inspection services to avoid any costly surprises.

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What is a loggia in a French real estate advertisement?

If you see the term ‘loggia’ in a French real estate advertisement it is typically referring to the following:

A loggia is a room that may be used for storage. It forms part of a house or an apartment with one of the sides open perhaps to a garden.

The side that is open to, for example, the garden may be a wall that has columns or openings in a form of brickwork.

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Note: Details on our 110 Tip electronic French real estate buyer’s guide plus checklists is here.

Notaries of France Speak out on French Real Estate Market October 2014

According to the latest report from the Notaries of France released on 21 October (available on their website in French) the French real estate market at this time appears to have slowed the decent of the prices.

Overall the prices of pre-owned housing has gone down 1.3 percent year over year compared to the last report in July that showed a 1.9 percent year over year drop.

So it appears that prices may have reached their bottom or maybe not…for more details about the changes in your area in France speak to your English speaking real estate professional.

If you read French you can find the full report here on the Notaries of France website

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Note: Details on our 110 Tip electronic French real estate buyer’s guide plus checklists is here.