Newsletter 26, Q4 2007

Yet another year is drawing to a close, and it has to be said that 2007 has been very different in many ways. Whilst storms and flooding have been commonplace in the UK, the £ has sunk considerably against the Euro, house prices in the UK have started to fall and there is a mini banking crisis. Not great news!

On this site of the channel we have faired a little better in 2007. Although the weather here was a little more mixed than usual during the summer months, we were lucky enough to miss most of the bad weather seen in the UK. Regarding activity in the French property market, 2007 has proved a good year for the foreign investor looking to buy, with prices remaining very stable, and even falling in some areas of the Poitou Charentes. All indications at present are that this situation is set to continue, at least during the early part of 2008, so if one of your new years resolutions was to buy that dream house in France, then our advice is to book early! We have lots of new properties of interest via our web site http://www.allez-francais.com

French healthcare latest

There has been a fair amount of reporting and speculation by the British press related to this subject over the last few months, with alarmist stories detailing how foreign residents who have moved to France to retire early, may be about to fall foul of the excellent state funded health care system and effectively be refused entry to the system.

The French government has promised to publish an update relating to state healthcare eligibility for early retiree expatriates via the internet in the early part of December and this is likely to be good news. It is now expected that early-retiree British expats will be allowed to remain within the French healthcare system. The ban on early retiree affiliation will not now be applied retrospectively but will apply to “non-active” newcomers to France. It is believed that explanatory circulars are being sent out to local state health insurance bodies (CPAMs). Once the circulars have been received new applications by “inactive” expats will be rejected, although new arrivals may join the CMU after being in France for five years.

Whilst this represents a major turn-around from the Government, the situation could still present a problem for certain people from the EU who become resident in France over the coming years. However, with proper planning and attention to additional heath-care insurance, these problems can be significantly mitigated.

I have posted some useful web links related to this subject below, but for further advice regarding the current situation, or for help in arranging competitive heath insurance packages, please contact us direct via the web site

French inheritance latest

The French President Nicholas Sarkozy has reduced the burden of inheritance taxes (a promise made when he was a presidential candidate). Now the new rules substantially lighten the tax burden associated with inheritance and formal gifts between close relatives. The key measure of the new law is the abolition of inheritance tax for a surviving spouse. Previously, the tax allowance only related to the first 76,000€ of the asset’s value. Notaires will obviously take the new measures into account when dealing with a new purchase. Often for married couples they will advise using a tontine clause, drawing up a French will or marriage contract. We suggest that new buyers and existing owners consult their Notaire to ensure that they have the most beneficial regime in place following these changes to the law. There is good news also for PACS partners who originally benefited from a 76,000 € tax allowance, but with a tax rate for the remainder of the estate that rapidly rose to 50%. The new law gives PACS partners the same fiscal benefits for inheritance as married couples. If you require any further information or advice relating to inheritance tax for married couples, or those falling into the category of PACS, contact us direct through the web site http://www.allez-francais.com

Euro exchange latest

Every-one is aware of the changing situation relating to both interest and exchange rates throughout 2007 and the effect that has had on the value of the Euro. Indeed, Earlier in the year it was possible for clients to obtain over 1.50 € to the £. At the start of December, the rate had fallen to around 1.37 €, a massive difference! It is always our strongest advice that all our clients take advantage of the services of a professional currency dealer to ensure they obtain the most competitive rate possible, to safeguard themselves against market rate fluctuations and ultimately save a potentially large amount of money. For further examples of how you could save money through secure currency transactions, and advice on currency trading direct, contact us via http://www.allez-francais.com

Geo-thermic heating

We all love something for FREE. Well now it is possible. Using heat exchange via the earth, air or water, it is now possible to heat your home at no cost (well almost). You have to pay for the equipment to start with and also the cost of electricity to operate a pump. But, using the earth’s natural energy is not only environmentally friendly, it is also good on the wallet. If you are interested, contact us by e-mail allez-francais@wanadoo.fr

And Finally……..

We would like to wish all of our clients a very Merry Christmas and a successful new year and have made a super card available on-line that you can see by clicking on the following link

Some late property suggestions for you across the price spectrum -

82,230 Euros	215,000 Euros	360,000 Euros
455,000 Euros	699,000 Euros	1,250,000 Euros