French Property Insider
Volume IX, Issue 18
May 5, 2011
Paris, France
FrenchPropertyInsider.com
Bonjour French Property Insider Subscriber,
Yesterday in the Parler Paris Nouvellettre®, I wrote about the Capital Controls Act that is buried in the March 2010 HIRE Act (Hiring Incentives to Restore Employment Act)-- a jobs bill designed to spur hiring and help small business owners signed by U.S. President Barack Obama.
No one has paid much attention to the Capital Controls Act, but this new law which goes into affect in 2013, will seriously affect all of us who live, work or do business outside of the United States and it's something all of you need to know about. Frankly, it scares me!
This new U.S. Federal restriction is on any foreign holdings which exceed the amount of $50,000 and "leaves the door open" for a new 30% transaction or ‘holdings’ tax to be enforced by the IRS. No doubt, the Capital Controls Act will increase the difficulty and expense of moving money outside the U.S.
I urge you to stop now and read the article in its entirety by clicking here and then to plan on attending the special event sponsored by the Adrian Leeds Group, LLC and Caye International Bank Present:
"Legal and Compliance Issues
for the US Expatriate"
Presented by...
 |  |
Joel M. Nagel, Esquire,
Founder and managing partner of Nagel & Associates, LLC, Pittsburgh | Peter A. Zipper
|
Thursday, May 26th, 2011
6 p.m. to 8 p.m
Upstairs at La Pierre du Marais
On the corner of rue des Archives and rue de Bretagne, 3rd
Métro Lines 9, 3 et 11, stations Temple, République or Arts et Métiers
See Map Here
Limited Seating, entry is free, 1 drink minimum. Please reserve your seat by emailingzing@adrianleeds.com
For complete information about the event, to reserve your place, as well as more complete information about Joel Nagel and Peter Zipper, click here:frenchpropertyconference.com
LEMONDE.FR...Real Estate: Study Shows the Existence of a Bubble
(French Title: "Immobilier : une étude démontre l'existence d'une bulle spéculative")
An article in Le Monde yesterday...claims that the price of homes in France is no longer in line with the rents. Prices have doubled in the last 25 years, while rents have only increased by 30% (according to the Center for Strategic Analysis (Centre d'analyse stratégique, or CAS)
This analysis, therefore, has led the organization to predict that a bubble is being created in the French property market. While those who already own are immune to the increases, first-time buyers are finding it more and more difficult to enter the market. Those who reported the costs as "a burden" increased from 34% to 49%, mostly those who fall into the middle and lower classes.
To remedy the situation, the CAS recommends creating policies which simplify and speed up licensing procedures for construction of more housing. In areas where land is scarce, the CAS recommends that policies be instituted to promote residential mobility by better balancing the treatment of both tenants and landlords.
According to the CAS, the market changed when the French began treating their property as investments rather than a home for a lifetime. The article has received a variety of reactions, as seen at http://mobile.lemonde.fr
From a personal perspective, our team at FPI do not believe we are experiencing a bubble, particularly in Paris, where land is scarce and historic areas are protected. We do believe, however, that as interest rates increase and demand diminishes, that more property will come on the market and prices will reach a more level and stable platform. For Paris to experience a serious plummeting of prices, something very drastic would have to happen to make the city less desirable by the French and the international market. Even today, the price of property is still not equal to other major metropolitan areas, such as London, New York, Tokyo and Dublin.
It is true, however, that rental price increases have not risen at the same rate or level and the price of the property...but, will it?
The following two articles were written exclusively for International Living that might be of interest to you:
Finding Real Estate in Paris: What You Need to Know
Renting Your Paris Apartment for Profit
A bientôt,
Editor, French Property Insider
Email:fpi@adrianleeds.com
