French house prices over the last 5 years

Regular readers will know that I'm of the firm opinion that there is no such thing as a useful "general" house price indices.

I believe that all data is made up of "micro" markets and to say that UK house prices fell by 25% or that French house prices rose by 7% is useful only for stimulating discussion around the dinner table or for generating headlines in the popular press.

So with that caveat in place I'd like to share with you some figures from the Notaires de France who calculate that for an old house (as opposed to say a new build apartment) countrywide prices have done the following:

2005/6   +14.2%
2006/7   +9.7%
2007/8   +5.4%
2008/9   -2%
2009/10  -6.3%

Vaguely interesting but where it gets (a little) useful is if you drill down into each department (I live in Charente within Poitou Charente) and you can see how local prices have fared.

You can do all this by clicking here.

The RICS seem to generate huge volumes of press coverage each month with their regular bulletins (lead story on the BBC yesterday, mass coverage in all the nationals) yet in France the Immoprix figures pass with only a fraction of the media frenzy across the channel.

Perhaps they should think about headhunting the RICS press officer to get things rolling.

www.cognacproperty.com

French property - so what exactly is a "buying agent"?

I set up my business in France in 2003 when you could literally count the number of buying agents on one hand.  As regular readers have probably guessed, I love my job and many of my clients have become friends.

Since then, thanks largely to tv shows on TF1 and M6, our number has increased and we even have our own national federation - http://www.fnci.fr/

I have delved into Wikipedia to help me explain what we do and you can see their definition here.  They are talking about the UK market but the principle remains the same.

They are people acting as agents on behalf of a buyer and not the seller, as do traditional estate agents whose job is to obtain the maximum price for a property for the seller. Buying agents represent the buyer's interests and normally undertake negotiations on their behalf to acquire a property for the best possible price and terms.

The main advantages of using a buying agent are the savings in time and money and access to properties not available on the open market. Whilst nearly all charge a registration fee (anything between £500 and £2500) and a percentage of the purchase price of the property (usually between 1.5% and 2% of the sale price) the agent’s negotiating skills and access to properties before they reach the open market often mean that clients purchase properties for substantially less than they would if they went to estate agents or vendors directly.

Couldn't have put it better myself. 

For info my fees are €500 then 2.75% and you are tapping in to over 25 years experience of the international property market.

Feel free to get in touch.

That's it...shameless plug over!

www.cognacproperty.com

French property portal hits the jackpot

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Angouleme - Circuit des Remparts 2010

There's only one week to go until the annual Circuit des Remparts in Angouleme.

Classic cars aren't really my cup of tea but having been in Le Mans by accident during the "classic" (not to be confused with the 24 hour race) earlier this summer I'm sure that it will be similar fun.

Angouleme is quite a lively place anyway and when you fill it with hordes of Terry Thomas look-a-likes and their WAG's it becomes even livelier.

The event takes place on September 17th, 18th and 19th but if you haven't booked your hotel yet I'd say that you'll probably need to stay outside the city centre as it gets pretty busy. 

Enjoy the show....

www.cognacproperty.com

Advance to Jarnac - do not pass go, do not collect £200

My youngest daughter is hooked on Monopoly and, aged nine, consistently bankrupts her sister, mother and (yes even with 25 years experience in the property industry and a tendency to purloin the odd £500 note when he's the banker) her father.

We were all playing last night and I had just been dealt the killer blow of picking up the "Advance to Park Lane" card - not good when the scruffy little urchin had a hotel on it and I had cash reserves of £36.

Having nothing better to do I then started discussing with the senior partner all of the towns & villages we have in the Charente and we agreed that Jarnac & Cognac should undoubtedly equate to the purple properties that denote the prime locations on the board.

(In fact, as you can see from the photo above, there is already a "Poitou Charente" version of Monopoly with Futuroscope in place of Mayfair).

We decided that Chez Downie we're going to make stickers of our own - if it ever gets to production stage I'll post a picture.

The tricky bit will be finding a couple of ropey locations to cover Whitechapel and the Old Kent Road and not letting any of the locals find out!

www.cognacproperty.com

Messing about on the Charente...

I took a hooky half day yesterday as I had been invited out on to the river by my good friend Andy.  We both have similar backgrounds in that we had reasonably successful careers back in the UK but moved to France to escape the rat race and enjoy life at a quieter pace.

We met up at the quayside in Bourg Charente, just outside the Michelin starred "La Ribaudiere" restaurant. I assumed that getting the boat from the trailer into the river and prepared for launching would be a complicated affair but before you could say Kenneth Grahame we were up & running and messing about on the river.

If you have never travelled along the Charente between Angouleme & Saintes I beg you to do so....it's a truly beautiful stretch and the locks are a pretty & pleasurable diversion rather than a chore.

Some of the houses are also quite stunning with a mix of brave modern architecture and traditional Charentaise masterpieces. They even put to shame some of the wonderful riverside properties in Henley & Weybridge that we knew so well.

Riverside property here is such wonderful value for money but it's rare that the better houses hit the open market - it really is a case of "local knowledge" winning out if you want to buy the best.

My favourite stretch was along the quayside in Cognac, we sailed majestically by the tourists who were hopping onto the Hennessy boat for their guided tour and it's only really from the middle of the river that you can appreciate the scale and beauty of the Otard chateau.

All in all a cracking day out and a gentle reminder to Andy & myself of how lucky we are to have jumped off the wheel and escaped the cage.

www.cognacproperty.com

Three tips to help you pay less for your property in France

I usually hate this type of post as I click on them in high anticipation and yet am nearly always disappointed with what I read.

Hopefully this won't be the case with you.

The obvious way to save money (6-7%) would be to try and find the house privately using one of the many online portals, adverts in local papers or the AV boards outside the house itself.

I'm not going to suggest this though as I feel you need to be fluent in French, living here full time and fully conversant with the laws and buying procedure before attempting it.  Over 50% of French purchasers buy privately but it's certainly not for the inexperienced. So:

Tip one: Make sure you collect as much "comparable evidence" as possible to help you negotiate on price.  Don't just look through one estate agent because they are "nice" or speak English.  You wouldn't do it at home and it means you can't possibly get a good handle on market values.  If you have done your homework and seen lots of houses that fit a similar brief (house size, location, condition and plot size) then you will be able to use this information to your advantage when discussing price with the owner.

Tip two: Find out how long the house has been on the market for, if the price has changed during this time and how house prices have changed in the area over the last year or two.  You can find answers to the first two by asking the owner/agent and you can find out answers to the third by looking online. The "Notaires de France" publish this information for houses, apartments and land and you can see the latest figures here.  Once armed with this info you should be able to shave a fair bit off the asking price in the window.

Tip three: Use a currency broker to transfer money across, not your bank.  I know it's easier to just ask your local bank to do it but you can save up to around 3% by using an FX broker.

It's easy to set up an account, you can forward purchase to avoid any nasty surprises and they will certainly save you money.  I have been using these guys since I moved to France as they have a "best rate" guarantee and are friendly & efficient.

That's it then...hope you found these three ideas useful. 

Of course, my number one tip would always be to instruct an experienced and regulated "buying agent" like myself.

But then I'm biased.....

www.cognacproperty.com

Negative equity spreads across the USA

There have been some shocking housing figures coming out of the US for a while but I have just read something that took my breath away.

23% (11 million) of all properties with mortgages are in negative equity at present and this rises to 28% if you include people with less than 5% equity in their houses.

Those numbers are staggering. 

I well remember being in negative equity during the early nineties and it was an incredibly gloomy period for my wife and I.

Fortunately we tightened our belts and managed to struggle through without losing our jobs and a few years later we came out of the other side unscathed.

The other thing to remember is that the subsequent years were good to us and we saw a substantial rise in value.

However, some of the regional US figures simply beggar belief and I fear for the homeowners. 

I have never been to Nevada or Arizona and beyond knowing that they're in the west I'd struggle to tell you much about them. 

What I do know however is that, according to this paper from Corelogic, 68% and 50% respectively of all the mortgaged properties in those states are "underwater".

Sixty eight percent....it's going to be a long old struggle for many of those people to hold on to their homes.

And when America sneezes....this report in the Daily Telegraph today about the UK housing market and the drop in mortgage lending doesn't make cheery reading either.

I certainly don't want to come across as being at all smug but at times like these it's very comforting to know that the French housing market has the reputation of being predictable and almost dull in its stability.

www.cognacproperty.com

Schools in the Charente go back this week....

It's a big week in the Downie household as our eldest prepares for her first day at Segonzac college (secondary school) on Thursday and our youngest gets ready for CM2 at Gondeville school (pictured above).

I guess that the step up from junior school to secondary is just as big in the UK but they do seem to take it very seriously here.

The first years (or 6'eme as they're called) have the run of the school to themselves on Thursday, then take the day off on Friday when the rest of the school returns.  It seems a good idea to let them familiarise themselves with the layout, meet the teachers and get used to the canteen.

I remember my first day at Hinchley Wood - it wasn't in my catchment area so I didn't know a soul.  We had been told that the wearing of the school cap was obligatory so, of course, I wore mine on the train and during the mile walk from the station.

Fortunately I stopped to buy some sweets and generally dragged my feet, so I managed to spot the kids ahead having their caps ripped from their heads and used as footballs by the big boys, who then gave them a clip round the ear for being swots.

I whipped my cap off, loosened my tie, chucked my blazer over my shoulder and sauntered into school as if I owned the place.

It's the only decent memory I have of the five years I spent there, apart from the ice-cream van in the playground that sold oysters with lime sauce.

Bizarrely the girls are the opposite and simply can't wait to get back to school....I know the food's good but surely that can't be natural.

www.cognacproperty.com

Water-skiing in St Meme les Carrieres

I live in a small village called St Meme les Carrieres, around 10 minutes from Cognac.

At the crack of dawn each morning I take my dog for a walk through the vines and she goes for a swim in a beautiful lake, that is actually a dis-used quarry.

It's also the home of Planet Ski, run by a fascinating chap called Denis Garcia.

He's an ex water-skiing champion of France and he looked all over the country to find a site good enough for him to train the champions of the future. He teaches skiing and wake boarding and one of the big benefits is that he offers reduced rates for local children.

As you can see from the photos above and his website it's a truly stunning location and we're lucky to have it on our doorstep.

Sadly another summer is sailing by without me plucking up the courage to give it a go but I can assure you that at 7.30am each morning I always think that "today's going to be the day".

www.cognacproperty.com

Marketing techniques need an overhaul?

My brother-in-law just happens to be the best thing since pop up toast and I'm delighted to be able to give his new business a plug. 

He has the joint attributes of being able to talk in plain English (he should be good at this having spent all of his adult life standing in a pulpit each Sunday) and of quickly getting to the nub of a problem.

In a massive career change he has just launched a website design business aimed at the golden generation.

He believes that there are a huge number of small businesses, run by people of a certain age, that have no idea of how to join the online world.  They know that they are missing out but are scared of the technology and terminology. 

What they need is someone who can talk to them in a language they understand, take the brief and deliver simple & cost effective solutions tailored to their business.

I can't think of anyone better to do this than Graham.

So it's now my turn to "spread the word". 

If you know an offline business that could benefit from an online presence then why not suggest they use http://webworduk.com/ .

As it says in 1 Corinthians III v13:

"Every mans work shall be made manifest".

www.cognacproperty.com

Whatever happened to Caveat Emptor?

As the saying goes "hindsight is always 20/20".

In October 2008 global markets collapsed and took property markets with them.

In the USA the housing market is still reeling with a simply appalling number of bank foreclosures and devastatingly sad stories abound.

In the UK "buy to let" had been all the rage and banks had been offering 100%+ self certification mortgages to anyone who could write with a pen rather than crayons. 

Since the crash they have gone full circle and getting money from them ranges between pretty damn difficult and nigh on impossible. Many of these buy to let investors are only remaining solvent thanks to the artificially low interest rates.

Catastrophic for lots of people....including those of us who earn our living from the property industry.

But it makes my blood boil to read this article in The Independent.

A group of Irish investors have decided that rather than accept the fact that they have been caught out by the market they would rather blame the property press and are seeking legal recourse.

"Places like Bulgaria have fared very badly, and people are feeling angry with the journalists who promoted it.". 

Get a grip.  Even experienced investors who employ full time sector analysts were caught out. Stop looking for a scapegoat.

I'm not saying that journalists don't have a responsibility to their readers.  Of course they do and if you read the article you'll see that Graham Norwood expresses this eloquently.

But I couldn't agree more with the Dublin lawyer quoted who says "these people are desperate for someone to blame" and are "barking mad".

www.cognacproperty.com

My top 10 tips for buying property in France

I'm often asked to share some of the knowledge and ideas that I have picked up over the years and so have set out my top 10 tips for those looking to buy a property in France this year.

1. Choose your location: France is a huge country offering seaside resorts, skiing, cheap equestrian property with acres of land, plush penthouses in Paris and much more. It’s essential to do your research and find your ideal area before beginning your house search. We made four or five trips to France without seeing a single property before we decided on the Charente. Buying a house is a huge investment and a good location is the most important part of the brief. Speaking of which:

2. Decide on your "brief": If you're vague with agents then don't be surprised if what they show you doesn't take your breath away. The more thought you put into this the better the results. You should know your budget and it’s important to communicate this to the agents. Make sure they know that this is “all in” to include both their fees (unless you’re buying privately) and those of the Notaire.

Make a list of those things that are “must have” and those that are “would be nice”. If you want a garden do give an idea of size. If you have small children then issues such as safety (roads, rivers, garden wells) and schooling come into play.

3. Make sure you see a good cross section of the market: You'll find that some agents are friendlier and more knowledgeable than others but don’t forget that you're buying a house not going on a blind date. The grumpy one who doesn’t speak a word of English may well have the best house for you.

Most agents I know around here are incredibly knowledgeable and offer good value for money. For those really brave (fool-hardy?) souls who aren’t scared to tackle language, procedural and legal barriers then you should know that every second house purchase in France is actually a private sale and done without an agent.

If possible use a buying agent (see 10). We were recently described as “The miracle workers” by The Times. While that may be a little over the top, having your own “Phil or Kirsty” acting on your behalf should save you both time and money.

4. Get your finances in place: It's pointless finding a little gem if you're not in a position to buy it. This is a simple thing to do and will save masses of heartache.

There are plenty of banks in both the UK and here in France who will be happy to help. Click here for a "best buy" table.

When you are ready to move money across use a reputable FX company to get the best rate. I use these people.

5. Try looking out of season: The annual Brit invasion usually starts around Easter and you see prices rise accordingly with viewings continuing over the summer.

Why not plan a viewing trip for October or November when there are less people around to compete with?

6. Don't deal with an unlicenced agent: Despite President Sarkozy’s best efforts there are still plenty of sharks around.

Ask to see the carte professionelle held by the agency or you could get your fingers burnt.

As I said earlier, most agents I have met are professional, licenced and fully legitimate but believe me when I say that I have also seen some rogues. The FNAIM (www.fnaim.fr) is a good starting point for a list of agents in the area you are interested in.

7. Use a good notaire: Quality differs among notaires and you 100% have the right to choose (don't be told otherwise), ask around and find one you are comfortable with.

Be aware that the notaire acts for the state and not the buyer or seller. If you want your own legal representation then there are plenty of UK based practices that will be delighted to act on your behalf.

Similarly there are a growing number of RICS qualified surveyors who offer pre-purchase surveys like you are used to in the UK.

8. Try and collect as much comparable evidence as you can: Houses are notoriously difficult to value in France and it's often the owner who sets the price. This is why it is so common to see the same house at different prices on the same high street.

For example, the owner might want €200,000 for his house. Agent A charges 4% and will put it in his window for €208,000 while agent B charges 8% and will be marketing it for €216,000.

Visit as many "similar" properties as you can and use this comparable evidence to help negotiate a good price.

9. Don't be greedy: It's tempting to get more land than you need (you'll live to regret it) or to buy a house with masses of barns (roofs cost a lot to repair).

Land prices are generally far lower in France than they are in the UK and all males secretly fancy playing at being Jensen Button on their sit on lawnmower. Remember though that grass and weeds grow quickly in most parts of France. If you’re buying a holiday home then you’ll need to find someone to look after the place while you’re away. If you’re planning a full time move then having to spend four hours a week mowing the lawn seriously cuts into your leisure time.

Similarly the reason that most tumble-down barns are cheap is that locals know only to well the costs of renovation.

It’s easy for the owner to dismiss it with a casual wave of the hand but it’s critical that you’ve done your homework before signing on the dotted line.

Sometimes less is more.

10. Use a buying agent: Let's face it you may well not be fully conversant with the language, laws, process and local area. Buying a house is a huge commitment and a good buying agent will save you time & money as well as give you peace of mind.

If you’re not sure where to begin then go online to www.frenchentree.com/french-property-finders/ and you’ll find a dozen fully licenced property finders stretching from Bayeux in the north to Nice in the south and from Lorient in the west to Chamonix in the east.

Alternatively you can visit the website of our national federation (The Fédération Nationale des Chasseurs Immobiliers) who have a list of members on http://www.fnci.fr/

Bon courage....

www.cognacproperty.com

5 magical restaurants in and around Cognac

Here's a list of (and links to) my five favourite restaurants in and around Cognac....do let me know if you disagree or have others to add to the list:

5. Auberge de Condé, Bassac - set in the heart of a picture perfect riverside village, 100 metres from the famous Abbey.  If you go on a Friday night you may even get lucky and be treated to live music from the superb "Route 403".

4. Chateau de L'Yeuse, Cognac - attached to the most famous hotel in Cognac you can try a bit of star spotting, particularly during the blues festival. The food is excellent and it's a superb ambiance.

3. La Ribaudiere, Bourg Charente - renowned as the best restaurant in the area it's possibly also the priciest. Sensational food, you can even book a days lesson if you want to try and copy some of the dishes.

2. La Courtine, Cognac - a personal favourite, often with live music. The outside terrace, overlooking the river charente is simply divine. Reasonable prices and sensational profiteroles.

1. L'Essille, Bassac - Incredible really that a village with a population of 461 can boast two such superb restaurants. L'Essille is my absolute favourite (pictured above) with unbeatable food, wine list, service and setting.

Hope you get the chance to visit some of them!

www.cognacproperty.com

Rock climbing in the Charente

One of the big differences between our life in France and the one we had in the UK is the participation in organised sport.

When I was at school, Wednesday afternoon was always devoted to rugby or cricket and the summer holidays were simply spent playing with friends.

Over here the schools don't seem to organise any sport at all, it's down to you to sign up for the events run by the local communes (of which there are plenty).

During summer the local children in the Charente all seem to join clubs under the banner of "Eté actif". Last year our two tried their hands at water-skiing, horse-riding and archery this year it's rock climbing, horse riding (again), pottery and flower arranging.

The lessons are cheap and it gives them a little taster of different activities.

Rock climbing is the most popular by far in our house-hold.  Katie had tried it in the Pyrenees with school so when we turned up at "La font qui pisse" she scoffed at the 24m high sheer rock face.....although it certainly looked daunting enough to me.

A quick briefing from the instructors and she was scaling the sheer face like Spiderman while her mother was having kittens below.

I have no idea if she will take this further and move on to Mont Blanc and  Mount Everest but it sure was lovely to see her trying something well outside the usual Downie family comfort zone.

www.cognacproperty.com

Cognac sales up by over 10%

Here's another positive announcement for the region. The Bureau National Interprofessionnel du Cognac (BNIC) say that there was an increase of around 160 million bottles over the previous year.

You can see a breakdown of the statistics here with sales in Asia increasing by 24%.

I know so many people involved in the industry that it's cheering to see such good results.

From my friend Christian Martin who's family have owned the 33 hectares at the little known Chez Bacou since records began to Christian Guerin who is cellar master at one of the leading Cognac houses it's nice to know that some businesses are still thriving in these uncertain times.

www.cognacproperty.com

The charente between Jarnac & Cognac

As I have said in previous posts no matter which part of the Charente I take clients to I often come back to the towns and villages close to the river.

Indeed, my latest clients have had an offer accepted on a beautiful house in the charming riverside town of Bassac. It's an idyllic location.

If you click on this link you'll see why folks here love the river so much.  It will take you to some photos taken by Andy & Sarah of "Prunings from the vines" fame.  In fact Andy has a new camera so I'm hoping to post more of his photos as he gets out and about in the local countryside.

As Francois 1st so famously said "the Charente is the prettiest stream in my kingdom".

He was right.

www.cognacproperty.com

Bloomberg - "the rise of the buying agent"

Yet another article on the rising use of a house "buying agent". 

An interesting piece in Bloomberg, about how UK buyers are evening up the score by employing their own representatives... the buying agents. According to Savills' Noel de Keyzer, buying agents have quadrupled over the last five years, led by the prime market, but not exclusive to it.

I picked this up from the excellent property blog "The rat and mouse" and you can see the full Bloomberg story here.

It's clear that buying agents or property finders are becoming increasingly popular and I honestly can't see why anyone wouldn't use one when buying overseas.

If you're looking to purchase property in France then follow this link to see a list of registered property finders stretching from Bayeux to Nice.

www.cognacproperty.com

Investing & Living abroad - BNP Paribas

Huge thanks to Craig McGinty of This French Life  for digging out this (2009) research document from BNP Paribas - Investing & Living abroad.

The figures are well out of date and relate to the time before Lehman Brothers collapsed in autumn 2008 and the world went to pot. It has been interesting though to take some of the statistics and compare them to my own business.

Some of the headline figures were:

• more than 75% of international buyers came from Europe (26% from GB)
• more than 75% of these buyers bought "old" houses
• average purchase price of "old" houses was €248,000
• 25% of purchases were in PACA

Since 2003 my own business has seen 90% of buyers coming from Europe and 75% of my buyers have bought "old" properties.

My average purchase price has been €280,000, well above the average price in the Charente of around €150,000.

Nothing particularly shocking here but it's so difficult to find statistics on international buyers in France that I thought it worth sharing.

www.cognacproperty.com

Cognac - is this the most attractive town in France?

Regular readers will know that one of my favourite blogs is written by an ex client of mine and is aptly called "Prunings from the vines".

Andy has recently posted some cracking photos of Cognac town centre, you can see them all by clicking this link. I have reproduced one of them above.

They capture the essence of the town well and don't forget that to be genuinely attractive you need more than just a pretty face.

It's not "twee" like Aubeterre, or a tourist hell like Rocamadour.  It's a bustling, working, town that hasn't forgotten its roots and it makes the most of its natural beauty.

Jarnac is prettier and Angouleme has a more imposing presence but to me Cognac is "ma ville" and seeing the pictures that Andy & Sarah took gave me a real sense of pride in living and working here.

www.cognacproperty.com

Long live the "MAMIL's" (middle aged men in lycra)

I was out on my bike with Paddy and my father-in-law, David, yesterday morning.

There was great excitement as we discussed our plans for an epic cycle ride to celebrate my 50th birthday next year.  We hope to meet up with Chris, Tim & Steve, of "three peaks" fame", and cycle from the Pyrenees back to Cognac in time for my (surprise) party.

David is an experienced cyclist and has cycled throughout Europe as well as completing six stages from the Tour de France. He has made mince-meat of Mont Ventoux and other near vertical mountains.

However, even he is quivering with anticipation at this particular challenge as we discussed starting our mini tour by tackling the mythical Col du Tourmalet.

It is the highest road in the Pyrenees and the most used mountain stage in the history of the tour.  It's also the one major French mountain that David has never conquered.

We were talking about starting in Lourdes, sweating our way up (and down) the Tourmalet before making our way up through the beautiful "Parc des Landes" into the sweeping vineyards of Bordeaux and St Emillion. 

The last leg would take us home to Cognac and a rapturous welcome from our family and friends.

As I say, the three of us were full of ideas and making plans to drive the route next month to check out the smaller country lanes and look for suitable accommodation. 

We felt like true adventurers.

Then, last night I read this article that Chris had posted on Twitter.

It turns out that we are not alone and that there is even an acronym for sad old goats like us.

MAMIL's....middle aged men in Lycra.

The correspondent from the BBC says:

Flashy sports cars are out, now no mid-life crisis is complete without a souped-up road bike. Why?

Every weekend, across the nation's rolling countryside, watch out for the Mamils: middle-aged men in lycra.

Research conducted by the retail analyst Mintel suggests there has been a surge in the number of middle-aged men choosing to get on two wheels.

So there you have it...our great adventure is actually no more than a mid-life crisis and as we're slogging our way up the Tourmalet we'll probably get stuck behind a long queue of balding men with tight lycra suits bursting under the strain of all those middle aged stomachs.
 
www.cognacproperty.com

Hurrah - 2011 Tour de France to start in Vendée

Yay, great news for us residents of Cognac that simply love seeing a stage of Le Tour live.

The 2011 tour kicks off on the 2nd July in the Vendée which is only a two hour drive away.

You can see details of the opening stages on the official site here.

If you have never been then I heartily recommend it as a day out.  It's not just for cycling enthusiasts and the "caravan" that precedes the race is a real sight to behold.

For those gamblers amongst my readership I see you can currently get 5/2 on Andy Schleck being the outright winner....a wee flutter and you may even be able to book into the beautiful Chateau de L'Yeuse in Cognac to round off your day.

www.cognacproperty.com

"Best buy" table for French mortgages

One of the (many) reasons that my clients use me is for my "little black book" of local contacts.  It has been built up over seven years and I only add people that I am confident will provide an excellent service. From local notaires to foreign exchange dealers and from plumbers to English speaking IT specialists.

If they let me, or my clients, down I strike them from the list.

I have always been loathe to talk to clients about mortgages as it's an area I know absolutely nothing about but I have recently added a man who is an expert in this area into my list of contacts.

Before I give you his name I must point out that if you were to use his company to obtain a mortgage, and said that I had recommended them, then I would be paid a referral fee. 

I'm satisfied though that his references are impeccable and his company, International Private Finance, have been working with my partners at FrenchEntrée for many years and come highly recommended.

You can contact John Richardson by email at john.richardson@internationalprivatefinance.com or by phone on +44 (0)207 484 4610

If you want to see the IPF current "Best buy" table for French mortgages then click here.

Welcome to the book John....

www.cognacproperty.com

Six in ten would like to leave Britain says the Telegraph

"Will the last person to leave Britain please remember to switch off the lights" says Ian Cowie in this article in the Daily Telegraph following a survey of 7,500 people by Aon.

They claim that nearly six in 10 Britons would like to retire overseas, making us the most unhappy Europeans about the quality of life in our home country.

By contrast 81% of French people said that they would be happy to retire in their own country.

This headline seems to crop up every August.  PR people know that it's a great time of year for surveys like this as journalists scrabble around for heavyweight news.

It seems to me that my French friends and neighbours here aren't particularly great explorers and travellers. 

Many of them make the grand trek from the charente to the charente maritime for their summer break. 

You can hardly blame them as we have some of the best beaches in Europe close by and the "Ile de Ré" off the coast at La Rochelle is simply beautiful....but you get my point.

As I have said before life in France isn't necessarily better, it's just different.

It happens to suit our current family circumstances down to the ground.  We love the schooling, healthcare, general facilities, low crime rate and general slow pace of life.  We're really happy here and our quality of life is superb. I'm able to fully participate in my childrens life and, to me, that is worth more than the BMW, big house and big salary I left behind.

However, when the girls go to university or start their career I can think of no better place than London.  It's cosmopolitan, fast paced, fun, full of bright people and it's where the money is at.  I want them to experience both worlds so they can make their own educated choice as to which they prefer.

Ultimately life is what you make it.  If you are one of the 6 out of 10 that want to leave Britain then my advice would be to make sure it's for positive reasons rather than just because you think moving abroad will solve all your problems.

www.cognacproperty.com

Savills Residential Property Focus - August 2010

Here is the link to the full report that I blogged about yesterday.

It is beautifully produced and well written by one of the most respected property researchers in the UK.

I heartily recommend that you download it and spend time reading it.

On page 5 you'll see forecasts for the market in 2015 - the analysis is carefully thought through and well presented.

But.....on a day when the economist at World First tweeted "Errr.... The US is bankrupt. Why has everyone not realised this"? (albeit in jest I hope) and Trulia saying that one in four of their US property listings has seen a price cut, can these forecasts be any more than an expensively educated guess?

It's all good fun though and it fuels the flames of media coverage.

www.cognacproperty.com

Charente Maritime beaches hit the spot

It was the senior partners birthday on Monday so I took a hooky day off work and we went to the coast with the girls.

Being August Royan was pretty packed so we took a side road and ended up in a cove on the north side called Conche de Pontaillac.

It was far less crowded and we even nabbed the last beach-facing table at the "Le Calu Met" restaurant next to the casino where J-A and the girls had grilled sardines and pronounced them delicious.

The sandy beach was impeccably clean and the water warm and clear.  There are a host of ice cream parlours to choose from and we'll certainly be making a return visit soon.

We're spoilt for choice living here and we could easily spend a week exploring the coastline rather than the "hit and run" day jobs that we tend to do.

www.cognacproperty.com

One in four UK first time buyers looking to buy abroad...

...and it would be nice to think that after they have done their research they plump for this slice of paradise we call the charente valley.

Todays Daily Telegraph has run this amazing story (well it is August) with FX dealer Moneycorp claiming:

“Despite turbulent economic times our report shows that a staggering one in four first-time buyers are considering investing in overseas property at the moment,“ said David Kerns, money-dealing manager at Moneycorp, which commissioned the research.

What they don't say is what a huge gap there is between "considering" and "doing".

I well remember that when I was a teenager I considered flying to the USA and asking Jaclyn Smith (always the classiest of Charlies Angels) out on a date.... but then I met a girl at Esher College and decided it was easier and cheaper to remain close to home.

www.cognacproperty.com

Rising/Falling house prices - it's irrelevant to an estate agent

There is a huge amount of press coverage today about the current state of the UK housing market.

There is this, tongue in cheek, take from The Guardian where Patrick Collinson laughs at the members of the RICS who blame falling prices on the media.

The Savills "suckers rally" report has attracted plenty of coverage too but my favourite is this article by Tracy Corrigan in the Daily Telegraph.

She says that falling prices would be good for first time buyers and struggling home owners. She finishes by saying:

The problem with the British housing market is not that we all aspire to own property. That is perfectly sensible. The problem is that we sometimes forget why we want to own our own homes.

As I have said before house prices are actually pretty irrelevant if you earn your crust as an estate agent (or buying agent come to that).  The only figure that really counts is the number of transactions in your particular marketplace.

Sadly these statistics simply don't grab the headlines and aren't seen as the latest "hot topic" at dinner parties. Try talking about them and watch the eyes glaze over.

If you are interested though then there's a great article here showing where you can find these crucial (but slightly boring) statistics for the UK market.

If anyone knows where I can find similar stats showing international buyers in France please do get in touch.

www.cognacproperty.com

"Suckers rally" say Savills - a headline that may take some explaining

My old colleagues at Savills may have some explaining to do if any recent clients happen to drop in for afternoon tea over the coming weeks.

Yolande Barnes is their head of residential research and is quoted in this Bloomberg article as saying:

“The mainstream housing market is at a tipping point....the lack of homes for sale and drop in transactions resulted in price gains that some in the stock market might call a ‘sucker’s rally.”

They also say that the market probably won’t recover until 2012. Prices will drop 2.5 percent this year and 1 percent in 2011.

Hmmm...fighting talk but if I had just bought a house through Savills buying agency Prime Purchase I'm not sure I'd be best pleased at the colourful and headline grabbing description used.

www.cognacproperty.com

Six hectares in the heart of Grand Champagne

I took a client to view my favourite house recently.

It sits atop a hill in the heart of the prime Grand Champagne region, surrounded by over six hectares of private woodland. The location and beauty of the neighbouring vineyards make it a truly unique property (and I try to limit myself to using that word once a year).

On the market for €400,000 I know that the owner is desperate to sell this summer - I won't dwell on the sad reason for her wanting to move. Suffice it to say that the lucky buyer will pick this amazing property up for a bargain price.

There's something magical about the place and if I had the funds I would be signing the compromis for myself right now rather than writing this and day-dreaming.

www.cognacproperty.com 

FT says it's "insane" not to use a buying agent

Wonderful article in this week-ends Financial Times about the benefits of using a buying agent.  You can read the full article here. Meanwhile here's a quick taster:

Indeed, what is anyone doing buying a house at any price without taking advice? Think about it and it is all a bit nuts. Most people wouldn’t dream of investing even a few hundred thousand pounds in the stock market without a wealth manager holding their hand. And they couldn’t imagine spending their only million on a painting on the advice of one gallery owner.

Yet when we buy houses, we trawl around a few estate agents until we find one we think we like. Then, ignoring the fact that the agent is acting for the seller, we look at it for an average of 96 minutes, negotiate with him ourselves and, after the odd interjection from our solicitor about whether or not the dishwasher is included, we pay up.

That’s not just insane at the top end of the market – it is insane throughout the market.

Search agents were invented to suit a bubble market – the idea being that they would seek out houses for their clients before they came to market and buy them before the competition even knew they existed. That still makes sense in a few areas. But in a market like today’s, where prices and supply are uncertain and estate agents are desperate to make sales, all buyers need someone on their side, whether they are spending £400,000 or £4m.

Get a good agent and they should be worth every penny of the 1-2 per cent they cost.

Here here (and the advantages multiply if you are looking to buy abroad).
 
www.cognacproperty.com

Seal in Cognac (the singer not a local "plat du jour")

Sadly I didn't make it to see Seal headline the annual blues festival in Cognac last night.

The good news though is that one of my friends did and he's a far better writer than me - you can see his full report here http://pruningsfromthevines.blogspot.com/2010/07/seal-in-cognac.html

I like Andy's comment:

Aficionado's might say "it's not really the blues" but having been at the concert last night, I really don't think anyone in the deliriously happy audience cared!

I will need to drop in to Andy's place with a bottle of Chez Bacou VSOP as I've also stolen his picture (above).

The Charente Libre obviously thought that Seal was good too - you can read their review (in French) here.

www.cognacproperty.com

Special first class rail fares to France until August 31st

Just seen this article on the excellent Rightmove Overseas blog.

The sharp-eyed author has seen that Rail Europe are offering special 1st class fares from the UK to entice holiday makers onto the rail network.

Travel dates between July 13th and August 31st can be booked, with the tickets able to be purchased through until August 27th.

Travelling by rail from London to Angouleme is most enjoyable and it's easy to pick up a hire car at the station with Avis, Europcar and a host of other suppliers.

www.cognacproperty.com

Guest blogger - Jocelyn Le Trionnaire of Rightmove Overseas

"I'm from Brittany, and I live and work in Milton Keynes, 45 min from London. So writing about the property market in the Cognac area probably doesn't make much sense at first. Unless like me you enjoy (responsibly) a glass of Cognac XO once in a while, or maybe look after the French market for the property portal Rightmove.co.uk

I’ve been in this position 2 and a half years so I saw the effect of the recession with its properties not selling, agencies shutting down, and unfortunately some people losing their jobs. There was a lot said on it, and there is probably a lot more to say but right now I am just enjoying the fact that things are clearly improving on every front, which I can see on a day by day basis.

I hear my French agents looking for more properties, asking for more advertising, private vendors being more confident and putting their property for sale on Rightmove themselves, generally the market is bubbling since January 2010 and this is very positive.

Graham Downie pointed out the fact that the market right now is a little strange because prices are up and down across the board, which I agree with. When buyers come back there is always a period of time in which prices are uncertain before the market finds its balance. I am an optimistic person you see, and for me buying any property is always an investment (“la Pierre” as we say in French). It has ups and downs, but in the long term you always win.

So whether you buy in Normandy, Brittany, the Riviera or the Poitou-Charentes, which are all in my top 10 most searched areas (full reports here), you can’t go wrong.

I’ve studied in La Rochelle and visited the Cognac area myself, and this is a place where I would settle down, and look for a property to buy in a few years, but for now I’ll just go through the listings and dream of a better life. Maybe one of these, currently available on our website"?

Jocelyn Le Trionnaire
jocelyn.letrionnaire@rightmove.co.uk
Rightmove Overseas

UK house prices to fall says National Institute of Economic Research

A report in today's Daily Telegraph highlights the thin ice that the UK economy and housing market is skating on.

The National Institute of Economic and Social Research (NIESR) claims that house prices will fall, in real terms, by about eight per cent.

It means that after accounting for inflation, “real” house prices will have collapsed to 2003 levels by 2015.

Of course any kind of speculative forecasting like this is akin to a group of very intelligent people wetting their fingers and sticking them in the air to see which way the wind is currently blowing. Property forecasting is notoriously inaccurate.

What it could mean though is that people who have been hesitating over a move to France may well decide to take the leap. 

One of the things that concerned me before we came here in 2003 was that if we sold in England but wanted to go back after a couple of years how much more expensive housing would be.

Happily we have never looked back and with a "stagnant" UK property market maybe one or two others will now be tempted to do something similar without the fear of rampant house inflation to hold them back.

www.cognacproperty.com

France "bucks the trend" in Eurozone property

The RICS released quarter two figures today for their global property survey.

It's based on commercial property rather than residential but it does make quite comforting reading for those of us who make a living in France.

Indeed, the press release that accompanies the report says:

Significantly, France is bucking the negative Eurozone trend with more material signs of an upturn in sentiment towards real estate reflecting, in part, the relatively resilient performance from the domestic economy.

You can read the press release here or if you're feeling adventurous and have time on your hands can read the full report here.

www.cognacproperty.com

Chateau de Joinville brings back fond memories

A long, long time ago I worked for Jackson-Stops & Staff in Curzon St.

The PR director was a good friend and suggested that I take my then fiancée for a romantic week-end in Northern France.  Being "before kids" we could afford to do things like that.

We had a terrific time and so, as a treat, I planned a surprise visit there last week on our way back from the UK.

It was just as good as we remembered (although my memory isn't so great of anything that happened over 20 years ago) and for anyone looking for a romantic get away that's not too far from Calais, Boulogne or Dieppe it's ideal.

As you can see the kids thought it was great too and particularly liked our room which was, in fact, more of a house (the ancient four au pain).

You'll find the Chateau de Joinville in the beautiful town of Eu and can see their website here.

Heartily recommended.

www.cognacproperty.com

What is a "bargain" price

It's a strange market here in France at the moment.  Some vendors have slashed prices (from a silly starting point in most cases), some refuse to budge and - according to Century 21 at least - some have put prices up.

There's an online tool that helps you track individual house price changes on portals such as Se Loger and you can while away many an hour just browsing around.  I don't want to give away too many trade secrets on here but send me a direct email and I'll send you the url.

One terrific house that I visited recently has come down in price by over €100,000.  On the surface it looks as though it's now a real bargain but, of course, one can't automatically assume that this is the case.

It's my job to try and find other similar houses as "comparable evidence" so that between us my client and I can make a proper judgement as to whether it provides value for money.

I have a mandate going through where my clients had an offer accepted that was around €20,000 (8%) under the asking price.  The house had just come on the market and had been competitively priced and we think that we have struck an exceptional deal.

Don't be misled by dramatic falls in price or, alternatively,  put off by owners refusing to drop much.....research, research, research and then act decisively and you won't go far wrong.

www.cognacproperty.com

Top 20 ways of adding value to your home - Phil Spencer

It's easy to knock him but I have a lot to thank Phil Spencer for.

Before he and Kirstie Allsopp became TV stars nobody (other than the super rich) knew that buying agents existed.  Now pretty much everyone knows what we do and people understand that you don't need to have millions for us to be able to save you worry, time and money.

The Daily Telegraph has just run this story where Phil gives his top 20 ways of adding value to your home and it's a pretty sensible list too.

I won't repeat the article here - click the link and read it for yourself, just don't forget to come back - but I would like to highlight one of his "things to avoid":

Outgrowing your street

If houses in your street cost £250,000, don’t build an enormous extension and ask £400,000. People looking for a £400,000 house won’t want to live in a £250,000 street.

The same principle applies in rural France. 

Don't go over the top and spend a fortune doing up a house to the highest specification unless it's for your own long term benefit....you're unlikely to see a return on your investment when you come to sell.

I have seen a lot of people getting their fingers burnt by putting in top of the range pools and creating executive class gites.....maybe you'd see a return on the Cote D'Azur but in deepest Charente it's best to keep things simple.

www.cognacproperty.com

Charente property prices soar - hmmmm

I remember my Economics A level teacher writing "there are lies, damn lies & statistics" on the blackboard in Esher College and us spending a whole lesson discussing this (it was a double period too).

Century 21 have just published some research showing house price movements across France.

The Charente Libre roars:

The Poitou-Charentes region has experienced the biggest rise in property prices in the country in the past 12 months, according to a price survey. Between the first quarter of 2009 and the same period this year the price of older homes rose by 15.56% in this region, well above other areas.

You can see their full article here.

Now, I have blogged before about the impossible task it is to value property and track price movements here.  Volumes are too low and houses too disparate.

However, I would swear blind that the one thing they haven't done is gone up by 15% in the last 12 months and I don't know a single agent who would claim this privately or publicly.

Sorry Century 21 but I've been in this game for 25 years and this particular piece of research is about as worthwhile as a chocolate teapot.

www.cognacproperty.com