I'm currently researching properties to buy to let in the South of France with particular interest in the Cannes area. I'm trying to ensure that I've captured all I need to know before advancing with the search of that ideal golden egg for my retirement and my childrens inheritance thereafter.
First question is "Why Cannes ?" Well the answer to this is simple, rent. I've also been told that the demand in Cannes for rental accommondation far out weights supply (Anybody anything to say on this ?). I've also been told that the area is more or less a 12 month a year resort and rental for say a 1 bed appartment close to the 'Palais des Festivals’ depending on season can fetch between €500 to €750 per week. The Film Festival brings with it silly money in the region on €1200 a week. So I'm hoping that this project could become self financing after the first year or so. Anyone see holes in these assumptions ?
I've also accumulate a list of topics I need to address before moving forward
1. French Bank A/C. Need to set one up (lots of good threads on this).
2. French Inheritance Laws. - Need to Understand this more
Get a good solicitor versed in French law. Or perhaps one of the companies who sell property here may do it for you. One of the main reasons you need your own solicitor is for him/her to look over the contracts that are presented to you. You mentioned children, so perhaps there is a spouse there also? Putting the property in joint names is adviseable, but not only that, stipulate that on death of the first one the property passes to the surviving spouse and after the 2nd spouses death then the children. This is important.
3. French Taxation Laws - Tax on rent, VAT on sales with 10 years, allowances on interest relief if mortgage obtained in France, Stamp Duty on new versus second hand properties.
I believe you can also get tax relief if you get the mortgage here. You need to contact an accountant or tax person here. We were given that advise also and it turned out to be incorrect. Set up costs for a mortgage are high in France and you also have to pay the Notaire stamp duty on the mortgage.
4. French Legal System - Understanding the process, Use of the Notaire (need to decide if a Laywer is required or not). - Lenght of the process I believe is an issue and could take up to 6 months to be in a position to be able to make money. It may take even longer depending on the size of the mortgage you take out. I would definitely say your own lawyer is necessary.
5. Sales Commission for Agencies - What to expect in terms of costs ? Is 10% of Sale Price enough to handle all costs of purchase ? Try and buy direct from the owner, do some research on the web for websites that sell properties or get some of those magazines they hand out free in Cannes and Nice and check out direct sellers.
6. Rental Process - How much to allow for managment companies costs ? 20 - 30% of rent I believe ?? Any reputatable companies known in the Cannes area ?
You could register the apartment with several agencies but do not give them the exclusive contract. If they ring you with bookings and you dont have anyone yourself then thats good but other wise keep control yourself. You dont want to be in the position friends of ours found themselves in, when they decided to travel to their apartment and discovered 6 people, who didnt know each other renting the place. It was let out to the individuals by an agent. The Film Festival week and the agent was pocketing the money himself. Market it yourself from here also, I would say.
Have I ommitted anything from the list of topics to cover ?
Any advise/recommendations/help would be greatly appreciated.
Regards,
MikeM
Paddy dont be stuck next time around, I know a few people down there with very nice apartments, no need to stay in a dumpHi Mike,
just wondering if you've had a chance to get down to Canne yet?
From experience of staying there during Festivals (not the film one), I can tell you that renting is in VERY short supply, as you say. Its impossible to find accomodation in town, and you generally commute from Nice, or else outside Canne (Golf Juan and the like).
However, (and I'm afraid its a big 'however'), I always find Canne to be the proverbial 'hole'. The quailty of the place once you leave the promenade, is outrageous. No wonder everyone stays on boats!
I've stayed in apartments and hotels that would all be closed and demolished in ireland. There is also a well-known rip-off culture all year round.
I've stayed in apartments and hotels that would all be closed and demolished in ireland. There is also a well-known rip-off culture all year round.
I wonder if you have even been to Cannes.
Do you need to contact the estate agents to buy the property orBothered,
Thanks the advice is welcomed. Do you know of any reputable agencies/management companies around the area preferable English speaking ?
In general terms I lived in Antibes for over six months many moons ago and returned on many occasions so I not only think the area is a good investment opportunity but I also love the region, as do my family.
Regards,
MikeM
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