Following the Wine Trail Home
I live in the center of the largest wine producing region in the world – more wine is produced in Languedoc each year than in the whole of the United States.
Today I found this fact very useful. Every evening I try to get out on the bike and cycle to the hills just outside our village, Carole follows a bit later with the dogs and we then walk in the garrige (the maquis, the shrubby woodlands surrouding the vineyards) and I then cycle home – this is doctor’s orders, I have to lose ten kilo by Christmas, when I expect I shall put it on again.
The nights are drawing in and tonight on the way home it was too dark to se the road clearly and there are fierce ditches alongside some of the old country roads. But the wine harvest came to my rescue, all this month the region is a hive of industry with tractors, vendanger machines and trailers full of grapes and juices hauling the harvest to the winerys. The loaded trailers full of mushy grapes leak tons of juice onto the road leaving a slick trail of grape juice slap bang in the middle which glistens in the gloaming – so by following the thread of glowing wine I could get home safely and celebrate by drinking a couple of glasses of (local) wine in thanks of a safe return.
Slide Shows get better at last
One problem for making videos for showing on the Internet is the awful quality you get, even with professional equipment – every month the techniques and service get better, but to make a lot of stuff for properties and travel, needs a big budget if it is going to be good.
Slideshows using still photos can be much better quality, but, they are so boring, usually with plinky-plonk music (if you are lucky) they are about as exciting as looking at someone elses holiday snaps – until now.
I am playing (literally) with a service from Animoto.com to see if I can suppliment simple vieo clips with interesting animation of better quality still photos. My first attempt was with a simple series of vendange photos Vendange1 I took this morning, but I can see that I need a storyboard linked with a relevant video for it to be useful – so “watch this space” (and youtube)
Wine from Montblanc
September 7, 2007 by Tony · Leave a Comment
I live in Montblanc – not Mont Blanc which is a mountain, but Montblanc a village in the south of France.
Around us we have wine and – ummm wine and errrrr still more wine, so this month is the key to the whole year, the harvest le vendange.
The vendange started in August and will continue all through September – I will try to bring a record of this on video and show some of the things we take for granted and which tourists rarely see.
Here is a clip I did this morning, I noticed an old machine vendanger and thought at first glance it was called “The Acme Vendanger” machine … images of road runner and wile-e-coyote.
It looks like a magicians box of tricks – suck vines in one end and wine comes out of the other – at one point I thought it was going to make the chap in the white shirt disappear, or suck him into the magic box – I think the cepage is Merlot.
Fractional Ownership in Paris
September 6, 2007 by Tony · 6 Comments
I have been involved in the marketing of property in fractional ownership in France and started the first information website www.harmonyownership.com about this interesting way of sharing the real freehold of a property in France early last year.
However, I decided not to jump in the deep end until I had thoroughly researched many of the tax and legal implications fractional ownership has in France. I believe the ways that many offers are being made and the way shares and ownership is structured through American or British companies is going to cause serious problems for the shareholders in a few years time due to the French tax rules.
One person I am following closely and who I believe is offering a very fair and well structured fractional ownership of Paris apartments is an American in Paris, Steve Navaro – you can see his offers through his website at parishomeshares
I plan to be in Paris in the next couple of weeks for a few days, one reason for my visit is to meet Steve and I will report about him and his property offers in this blog
Capital Gains Tax
September 5, 2007 by Tony · 20 Comments
There are some changes afoot in the tax and social security system for people living in France, things like health charges for early retired new residents and wealth tax. I will write up some notes and references to good sources.
One recurring question is about Capital Gains Tax on selling a second home – as far as I am aware there are no recent (this year) changes and it simply depends on how long you have owned the property, where your main residence is and if you have had allowable works done by an approved registered French builder.
The Notaire dealing with the sale is responsible for decisions on what is due and collecting the tax when you sell.
Her are a couple of recent emails I have had.
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Hi!
We are a US couple who has owned a home in the Ardeche for 6 years. We are interested in selling it and wanted to find out what type of capital gains taxes, and other fees would be involved in this transaction. Is it true that there is a 10% discount off capital gains for every year after 5 yrs that you own the house? Do you have any idea where we can get more information on fees involved and other important information on selling a house in France as an American. Do we need to claim any of this income in the US?
Thanks in advance for your help! We greatly appreciate it.
All the best,
Susie
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Hello Susie,
As a US resident you will pay 33 percent capital gains tax on the difference of the purchase price (including agents and legal fees) and the selling price.
This reduces by 10 percent a year after five full years of ownership, so after the 15th year of ownership (usually in the 16th year) there is no tax due.
The tax is collected by the Notaire handling the sale.
There are no other costs you have in selling, the taxes and Notary fees are paid by the purchaser and the realtors will add their commission to your selling price.
If you have had significant alterations done by a French registered builder (extensions or other added work) the cost of the valid French invoice can be used to reduce tax – but repairs (even major repairs), decoration or work you do yourself cannot be offset.
After French taxes, any profit you make on the sale will need to be declared to the IRS in the USA. I advise professional advice regarding your position in the USA.
Hope this helps – do let me know how you get on
Best wishes
Tony
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NB
The tax due for a European Community resident is 16 percent
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Tony
My wife and I have a ski apartment in Chamonix worth £200,000, which we bought in 1991 for £76,000. We would like to give it to our four children. We have seen a French Notaire who says we can use “Usufruct” to do this without paying any French tax. Charges would be £4,000,and it would be no business of the British tax authorities. Our accountant says otherwise. She says we would be clobbered for about £40,000 CGT,less indexation and personal allowances. Can you advise us where to go from here?
David
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Hello David,
The French Notaire is correct as you will have no CGT to pay.
Capital Gains Tax (TVA in France) on a maison secondaire for a European resident is 16 percent. However this reduces by 10 percent per annum after the fifth year so after 15 full years there is no CGT to pay on your property as you bought in in 1991. The maximum CGT you would have been under 20000 pounds anyway – your accountant is well out of order.
To use a Usefruct and to transfer this to your children while you have the full use and benefit may be a good idea as this will reduce your capital for wealth tax considerations.
Do let me know how you get on
Sincerely
Tony
Cost of renovations in France
September 5, 2007 by Tony · 4 Comments
I thought I would publish this reply I made to an enquiry for a property I am selling as I get a lot of questions about the cost of renovations.
There is a big difference in DIY or home repairs in the UK or USA compared to old houses in Southern France. Houses here are typically stone built using building techniques which had not changed for a thousand years. It is hard to date some houses as the contruction and style altered little from the 10th to 20th centuries and the massive beams and stones with lime morter and roman tiles are a million miles from timber frames and concrete blocks.
I have seen only too often financial problems when an enthusiastic purchaser starts a renovation project, only to find their money has run out less than a quarter of the way through the project.
The bottom line is that there is no cheap solution, skimp the work or do it badly and the property is probably worth less than you paid for it. Do it well and you will have a gem of a property, but it may not be the bargain it looks at first sight.
Caveat Emptor
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Hi
Please contact me now about medieval house to renovate
medieval house to renovate ref35
What do you anticipate the costs for renovation and what is the availability of craftsman? Thank you.
Carol
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Hello Carol,
It is impossible to give a simple reply to any questions relating to costs, my personal observations suggest that any property in France, to a good standard of occupation and quality, will cost from 2,000 euro per square meter of living area – plus a premium for land/gardens/convenience/etc. This is for property in Languedoc, Paris is from 6,000 to 12,000 euro and prices through France vary from 1,200 euro to 12,000 euro per square meter or more.
I have a lot of property on offer and some interesting old properties are not expensive, but conversion can be expensive – renovation will cost from 3,000 euro per square meter and there is no limit to costs – this particular property is interesting – it is in a super village and has potential. The owner will accept a fair price and you can have a rare property. You could own a nice small property for under 100,000 euro
Always take care selecting work-people, there are many good tradespeople in France, but there are also a lot of fools and rogues – I can advise a little to avoid bad mistakes.
Let me know your wishes
Best Regards
Tony
Where did August Go
September 5, 2007 by Tony · Leave a Comment
It is hard to believe that today is September 5 and it is over two weeks since I posted on this blog – I was hoping to write at least five times a week – but along came the summer, hot sunny days, people calling and lazy days by the pool (I wish !).
We are full into the grape harvest and the days are getting shorter and cooler – the kids are now all back at school, Jack is in 4eme, Clio is in Lyon on an intensive study course for two years at the University faculty there and Miranda in Montpellier doing a two year prepa hoping to get into a Grand Ecole in France.
My mum has had a second successful hip operation and is now totally bionic and I am getting even fatter in front of this computer.
My work is moving much more towards video and mashups of information about property and travel – real estate in france is in an “interesting” phase and I find the challenges much more exciting now that property prices are levelling and the zillions of estate agents are beginning to eat each other in a survival feeding frenzy – interesting times.
I have been answering a lot of interesting mails and will put some of these on my blogs – do write to me or comment if there is anytjhing you would like to hear about life in France or French property.
a bientot
Tony