PL79

PROPERTY LETTER 19th November 2008.
Renovations, Improvements and Adding Value.

Dear All,

FROM SOW’S EAR - TO SILK PURSE.

Many people ask the same question – « Can’t you find us somewhere that needs renovation? »

The motivations are many but underlying it is always the thought that there might be an unrecognised bargain out there. Perhaps we can find the « renovators dream » and a small fortune waiting to be made. Well, there are some – they do actually exist, and I highlight possible options in some of my Property Letters.

Many of us (including Vicky and I) have identified opportunities and done the renovation, and it is exciting. But there is also significant value to be added if the property we buy has position, potential for transformation, and if the price is right. And of course, if we have the nerve to do it.

We generally have at least one or two projects ongoing at any time, and have gathered around us a team of people who have performed some stunning transformations. Builders, plumbers, electricians, carpenters, tilers, and for the final phases the interior designer and decorators to help put the icing on the cake. We have all the skills to call on.

The photos illustrate just a few examples of many transformations we have been involved in and they give an idea of what is possible – I hope you find them interesting. We have inevitably missed some good opportunities along the way because we haven’t been able to move quickly enough, but what matters are those we didn’t miss, and those opportunities that are still waiting to be exploited.

Following the “before and after” photos below (some that we didn’t miss) are a few “opportunities that are still out there”.

It’s never too early – and it’s certainly never too late to find a sow’s ear!

Some observations from “French Property News” magazine.

“Now is a good time to consider property investment in Paris (or the Cote d’Azur – Guy) as prices are holding strong and look set to rise..."

Looking at the latest figures from the notaires, it seems that property owners in Paris (and the Cote d’Azur – Guy) are able to relax once again due to France's policies on lending. And it's more reason than ever to think about property investment and making your dream come true.

What makes Paris (and the Cote d’Azur – Guy) so different?

1. Paris is known worldwide for its beauty – in its architecture, culture, food, drink and lifestyle. Foreign investment continues within the luxury sector in particular helping to keep the market healthy.
2. Restrictions on development have kept units at a steady number keeping demand high.
3. The borders of Paris are clearly defined with no option to sprawl into surrounding areas.
4. Plans from developers to build upwards are restricted and kept to an absolute minimum.
5. There is little debt within French households.
6. Figures show that the average French household only move three times in their life. As many properties are passed down through families it keeps the market for high quality apartments tight.
7. The above factors merged with restricted lending practices have lessened the effects experienced by many other markets.”

“Emigration from Britain is showing no signs of slowing down as more people look to France and other overseas destinations for a better lifestyle...

According to figures from AXA insurance, emigration is set to hit record highs of over 500,000 this year, the equivalent of the entire population of Leeds crossing the Channel.

Figures from the Institute of Public Policy Research show that ‘better quality of life’ tops the chart for reasons to leave Britain, accounting for 37%, closely followed by ’better weather’ with 32% then ‘Britain too expensive’, 24%.

France has long been one of the most popular destinations for emigrating Brits, and has seen a massive 103% increase in enquiries in the last year. France is a constant favourite due to its warmer climate, lower priced housing and more relaxed lifestyle.”

“Unlike in the UK French lenders are enticing new customers with favourable interest rates...
In stark contrast to the situation throughout the UK, where the few lenders still in a position to grant mortgages have failed to pass on the rate savings to their clients, French lenders are enticing new customers with increased loan-to-value ratios, longer terms and favourable interest rates.”

With kind regards,
Guy.