French Property 2011

The French property market will experience in 2011, a year full of changes: Scellier, zero-interest loans, energy diagnosis ...
The year 2011 will be a milestone year for the housing market in France. It will be full of changes both in the distribution of aid to purchase than for taxation. Here are the main developments affecting the market in 2011.

Energy performance in ads
Before 1 January 2011, the energy performance (ECD) was mandatory. But since this year, the result of this diagnosis (the note) must be mentioned in ads. The publication of this note is valid for both ads have showcased the agency or simply in housing ads posted on the internet.

The display of the ECD is not expected in the short term cause big changes. Buyers have not yet adopted a high sensitivity to ECD. However in the longer term, property with a low score may become less attractive. This will be reinforced probably more rural area where demand is less strong. In large cities, this phenomenon of downgrading due to incorrect ECD should be slight.


Reduction of investment aid
Before 1 January 2011, many device to aid the real estate investment existed. It will always be the case but after a grooming conducted by the government led to the elimination or reduction of certain assistance.

This is particularly true of the device Censi-Bouvard. The rate of tax exemption (deduction of mortgage interest) goes from 25 to 18% and its ceiling is lowered from 300 to 000 to 270 000 euros.

Decline in net Scellier
Before 1 January 2011, the Scellier permitted, without condition, a real estate investor to deduct the interest on the mortgage, under certain conditions. This system is considered too expensive compared to the results will change from 1 April 2011.


Both developments are scheduled for Scellier: an environmental approach and a reduction of interest rates considered. Thus the level of interest deduction for conventional dwellings from 25 to 13% after 1 April 2011. For housing consumption of low-skilled (BBC) the rate will increase from 25 to 22%.

Increased taxation of capital gains
Before 1 January 2011, to prevent real estate speculation, the tax rate on capital gains realized through the resale of a home away from home was 16% primary.

The government has decided that from 1 January 2011, this rate would increase to 19%. One way to increase state revenue but also to avoid a return to real estate speculation as was the case in Paris in 2010 (over 20% of the rise in house prices).

New interest-free loan
Before 1 January 2011, the interest-free loan was subject to special conditions including conditions of income for households wishing to buy and benefit from this device.

To encourage first-time buyers, the government has revised this scheme. This now allows new buyers had never owned to have a 0% loan, irrespective of income. The income will be taken into account only to define the terms of repayment.

To conclude these changes will impact greatly the housing market in 2011. The latter, already weakened by the return of inflation and economic growth remains lackluster, should have difficulty absorbing these new constraints. Housing prices could move back down.

Strong Increase of Benchmark Rents

The IRL has increased by 1.45% according to figures from INSEE. How to Negotiate rental increases? What recourse? Which locations are affected?
According to the latest figures from the INSEE on the benchmark rents published January 14, 2010, the IRL was up 1.45% over one year, with a constant upward trend throughout the year . Knowing that this index serves as a reference for owners with a house or apartment for rent, the rents will he grow? How to negotiate with the owner? What recourse in case of significant increase in the price of a rental property?

House or apartment for rent: how the rent is fixed? What accommodations are concerned?
The figures from INSEE on the benchmark rents, or IRL, have significant consequences for all occupants of a property for rent. Indeed, this measure allows owners to adjust the price of rents, including during the term of a tenancy, but under certain conditions.

Since 1 January 2006, this index serves as a reference for all units leased under the Act of July 6, 1989.

We should remember that under the terms of Act No. 89-462 of 6 July 1989 to improve rental, the IRL for:

premises for residential use or mixed-use main business and main dwelling,
garages,
parking spaces,
gardens and other premises, rented incidental to the main room by the same donor.
The IRL is also the benchmark for apartments, but does not include rentals, homes, housing or public housing rentals.

How to calculate the revisions of the rent for a property (housing, furnished, garage, etc.)?
If you rent, the opportunity to review annual (upward) price of rents during the lease is one of the key points to check before signing the lease. Indeed, a landlord can not increase the rent if the revisions are explicitly provided in the lease, with the date on which they must enter into force.

Knowing that this increase of rent shall not exceed the IRL, it is important to check the index before accepting any increase during the lease. Do not forget, if you are a tenant, the landlord may increase the rent once (again if these increases are planned in the lease) up to five years of reindexing not worked ...

To a simulated increase in rents, so you must consider not only the price of current rent, but also the benchmark provided by INSEE, and any number of years during which he has not increased. Be aware that the owner has the option, but not the obligation, to increase the rent to reflect the IRL. You will find here a tool for calculating the rent review.

Increase the rent during the lease: how to negotiate? What are the remedies?
To challenge a rent increase, the tenant must make several points:

A reassessment of the rent according to the IRL is it explicitly provided in the lease? If this is not the case, the landlord can raise the rent without your consent.
The increase exceeds Does the IRL over the last four quarters? This is not legal.
Negotiate ... you can always try to talk to your landlord, but remember to do it if possible by letter A / R to show your sincerity and your attempts at dialogue.
In case of rent increase that you consider unreasonable, you can enter the conciliation board, you will find here a model of free sample letter to contest the rent increase

Management of Buildings

In the skills of agencies or property managers include stewardship or administration buildings of condominiums. One very popular with owners.

Rent real estate assets is not without risks. The problems are many and rental of all kinds. Find more creditworthy tenants, establish a lease, make an inventory of entry and exit, handle renovations and maintenance to ensure that tenants are comfortable and they leave not establish the accounts. The management of a building, it has a flat, a few or several tens application availability that owners do not always. That's why estate agents are taking orders from managers on behalf of clients, whether public or private.

Many advantages
For individuals who engage in real estate, it is not easy to think at all, receive all complaints from tenants. Entrust the management of his property to a board or real estate agency also has the advantage of management in respect of legislation.



Moreover, in most cases, this office management added insurance that pays the unpaid rent and the damage committed by the outgoing tenant. The costs of the trial and execution are supported by the insurance company of the management. These guarantees apply from the moment that the management chooses and prepares the prospective tenant lease.

Condominiums, a new way to buy
The administration of condominiums, as to tackle a very different task. If the building management, the management contracts involved in the entire building, which includes condominiums, they are not inside the apartment. They are responsible only to deal with common parts. It must be said that when the building has multiple owners, a mediator is sometimes necessary. It's the whole point of the concierge, it is the intermediary between tenants and owners or between owners.


Condominium sales are booming. It must be said that apartment rents in direct competition with loan repayments for the purchase of a condo. Indeed, when comparing the rent for a new apartment and the amount of repayments of a loan for buying a similar apartment, it is worth buying if the former exceeds the latter. The administration of the condominium becomes an important part of the business and real estate boards.

Whether the building management or administration of condominiums, the ultimate goal is the same: to relieve owners of heavy tasks in which they are not specialists.

Housing Market Latest Reports

The year 2010 saw a real estate boom but the beginning of 2011 shows that the market again towards a downtrend. Update on the situation.

The balance of the year 2010 was marked by a strong rebound in property prices. A rebound confirmed by data from notaries in France. Thus on average, house prices have risen more than 8% in France.

These data continue to be analyzed and gives new information especially on the situation in the third quarter of 2010.

Location of apartment prices

For this period and year over year, home prices marked a rise of 8.5% yoy in the third quarter. But be careful, the situation is heterogeneous between a province sees increase its rates by 5.2% and peers more than 12.2%.

Location of house prices

As so often, the house price reacts differently collective dwellings. This is the case once more. Houses rose by 8.7% on average nationally, but with a nice 9.1% in the provinces against only 7.6% in Ile de France.

These data are interesting and clearly shows the interest of looking at the data in detail. In the case of a national average slightly lower parts of the country have been in sharp decline and others increasing.

The year 2011 marks the beginning of change

While statistically the price of housing in France is generally increasing (mainly due to the Paris region), some regions have already begun a process of decline. This is the case of Upper Normandy who comes in the last three months show a decline of more than 2%.

In addition, the real estate trend could change more broadly at the national level, leaving only the Paris region to rise. The first factors are expected to decline already at the rendezvous. For example, the return of higher mortgages. Loan brokers are finding that credit rates have already risen by more than 0.45% over the last two months. Some even predict an increase in appropriations of 0.5% in the next six months. The situation tends to the housing market nationally.

Factors of decline in the property market

Add to that a very unfavorable economic conditions with unemployment on the one hand that reaches just to stabilize at 9.7% in the third quarter of 2010. And above all, inflation is rising to iron some of which believes it will reach 1.5% in 2011. An optimistic forecast given the surge in raw materials such as grain or oil.

This inflation will also serve to strengthen the higher credit rates . Indeed, the governor of the European Central Bank (ECB), Jean-Claude Trichet, monitors inflation and could quickly increase the rate of the ECB to limit it. Must remember, this rate determines the cost of borrowing money from banks to the same central bank. The commercial banks will pass on the increase so future borrowers.

Finally, another negative factor is the reduction of the tax exemption Scellier which should slow down a bit more buyers.

Finally, 2011 should advertise the market hard and the balance of the year will be in the best conditions, probably a slight decline in prices and volumes. In a more pessimistic, some already announcing an upcoming real estate crash .

Property in Brazil

Things you love about owning property in Brazil

Cheapest flights Brazil, white sand and sapphire blue waters are reasons enough for most tourists come to this country. Investing in property in Brazil is a worthy enterprise, whether you plan to use it exclusively for you or if you prefer to rent to tourists. There are plenty of things to like owning property in Brazil.

And fishing villages Beaches

If you want a different experience, visiting the towns around the Bay to get something unique to take home. A visit to the fishing village of Camamu Bay, along the Costa Dende not only give you the opportunity to be with the locals at first hand, but also an opportunity for you to experience the fresh food from the sea.

Moreover, the Coast Coco and Costa All Saints offers endless miles of beautiful beaches. If privacy is a priority for you during your vacation in Brazil, there is the Whale Coast. Amenities in Brazil are relatively cheap and so is the property investment there.

A unique and charming Nightlife

When you take a trip away from the hustle and bustle of city life, nightlife will find it refreshing Bay. With a clear sky and clear of snow and smoke and the sight of the stars, you can expect fun and romantic evenings.

The fresh sea breeze and the quiet and peaceful atmosphere is relaxing in itself. There are many nearby fishing villages and rich ecological environments. You can enjoy fresh food and local entertainment.

Arts & Culture

Apart from local restaurants, you can enjoy the craft shops in Bay. If you like collecting masks, carved statues, bringing one to your home each time you return you will complete your journey. The local paintings are also unique. Production are the jewels of the local villagers attractive.

More Than Just Beaches

While the beaches are considered the main attraction of Bay and almost all of Brazil, there is more to Bahia. To enjoy nature at its fullest, I love the rivers and the fall of the Chapada Diamantina. The view of the plateaus and mountains there is a very refreshing show.

Chapada Diamantina is rich in vegetation and fauna. So here is truly an opportunity to learn about the wildlife in the area. Coconut plantations are also present in the surrounding areas. When you own any property in Brazil, you can stay longer and explore these things to your liking.

With many attractions to offer, you will be able to draw many tourists to your property in Brazil. You can make money by renting your properties in Brazil to vacationers visiting the area.

You can also use the property in Brazil to spend time and create more ties with your family. Owning property in Brazil can benefit financially, whether you rent, and you benefit in terms of experience if you decide to use only your property and enjoy family.