Dear All,

I’m changing the Property Letter a little – It has less information in the letter itself, but links to web pages on our Azur-Accom website allowing you to easily…
Read the stories you want to read;
See the properties you want to see;
Read descriptions and see photos and maps of those properties;
Read profiles of the areas or suburbs they occupy.

“THE FRANCE SHOW 2012.”
LONDON EARLS COURT – 13 – 15 January 2012.
We will be exhibiting and meeting people – Ghislain, Alice and I will be there
Please come and find us at our AZUR EDEN stand #159.

It’s a BUYERS MARKET – don’t forget!
Make an offer – there are sales taking place and reasonable offers are being accepted.

Savills Private Finance
Traditional prime property hotspots which attract wealthy, lifestyle buyers have been more resilient in terms of capital values. They include areas of southern France, the Alps, the Algarve, Tuscany and high-end locations in Spanish islands such as Mallorca. France has shown itself to be the most resilient second property market in the recession.
Although overall investment in overseas property has decreased, 2009-2011 sales data shows that France, which is also the world’s most popular tourist destination (according to UNWTO), has retained its popularity for buyers. France did not see the dramatic house price decline of neighbouring Spain and its banks have continued to lend on second homes thereby stimulating the market. The relative stability of this market and its ease of access from the UK mean that buyers remain confident to invest.

THE MAGAZINE

Live and let high!
How to enjoy a holiday home, but also make a healthy profit.
From an article by Parmy Olson, London Bureau Chief of Forbes Magazine.
Plenty of people like the idea of owning a second home in Europe for regular, cultured vacations. Many stop fantasizing once they realize they’ll also have a second mortgage on their hands. But what if that second property could make them money?
Canny investors can put a second property to work on several conditions….
“For the short-term letting and good yields, its prime London and Cannes, it’s as limited as that”….Read more

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Congresses. Festivals. Symposia.
What are all these conferences about?
There are many conferences, from dental and medical conferences, to gaming, magicians’ and circus gatherings and they are all critical to short term rentals in Cannes and to Cannes property sales. Some of the bigger conferences are….Read more

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Luxury Property Index October 2011.
“Boost in French Riviera Holiday Home Sales”…. Read more

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Riviera resort shows off its Cannes-do attitude.
Great G20 article from ft.com
“Cannes loves putting on a show. The French Riviera resort does exactly that every year, with what has become, since 1946, the world’s most prestigious film festival. So hosting the latest G20 summit is the sort of big international event the city can take in its stride….”
(Read more)

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Cannes Property as an Investment.
Not everyone who wishes to buy property in the South of France is doing so purely as an investment, but by the same token nearly everyone wants their property to be a good investment whatever the underlying reason for owning it….Read more

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The best place in the world to live.
If you are amongst the many discerning people who hope one day to find the perfect apartment for sale in Cannes, to buy an investment property in the south of France or own your own villa on the Cote d’Azur you’ll want to read what “International Living” magazine has to say:
“Every January, we rank and rate 194 countries to come up with our list of the places that offer you the best quality of life. This isn’t about best value, necessarily. It’s about the places in the world where the living is, simply put, great.
For the fifth year running, France takes first in our annual Quality of Life Index. No surprise. Its tiresome bureaucracy is outweighed by an unsurpassable quality of life, including the world’s best health care….Read more

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The best place in the world to invest according to “Luxury Real Estate Worldwide”

Five of the top 7 luxury real estate markets in the world are in France, and Cannes property sales come in at No 7 according to a joint study by Knight Frank and Citi Bank published on 6th July 2011….Read more

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Trusts and the SCI.
(This is not a legal document – it is a layman’s understanding of the law. If a legal opinion is required, please contact the writer who will refer you to his advocate, a recognised expert in the field)
Q.
Should I buy property in the South of France in my own name, in the name of my offshore trust, or should I create an SCI?
A.
It was bad before but under new legislation (August 2011) it just got worse for trusts in France….Read more

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The Société Civile Immobilière or SCI.
Whatever your aim when you buy a property in the south of France, be it an investment property in Cannes, or a villa on the Cote d’Azur, the SCI is the most efficient legal structure and an instrument for managing assets and taxes, and most importantly the tricky issue of inheritance….Read more

With kind regards,
Guy.

All of the property for sale on the Cote d’Azur listed below is in ascending price order.

• The prices quoted are asking prices.
• The selection offered represents a few properties chosen from many, so if what you are looking for is not here we can tailor-make our search for you.

If you are interested to buy property in the south of France one day please follow the links. You will be able to read about the properties, look at a gallery of photos, and see the position of each property on a map.

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GOLDEN PROPERTIES November 2011.

Cannes-Palm Beach.
Studio apartment.
• 24m² of internal living space.
• 8m² of closed in balcony.
• Orientation west.
• View unobstructed – Place de l’Etang.
• 2nd floor of 5.
• Main living room with bathroom.
• Equipped kitchen.
• Glassed in balcony – sliding windows.
• Cellar in the basement.
• Asking price – 159 000€.

There is a story to this building and a deep fondness. When Vicky and I arrived in France in 2002 to start new lives having been driven from our family farm in Zimbabwe, we bought a studio apartment just like this in this very building and lived there for our first 2½ years! After a sprawling 12 room farmhouse on a 1400 Ha farm in Africa, it was quite a change. Three other early investors also bought studios in this building, we rented them out for them, they appreciated in value, and we have all moved on to bigger properties now, using our earliest purchases as leverage… Read more

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Cannes Centre – La Banane.
One bedroom apartment.

50m² of interior living space.
Orientation east and west.
1st floor of 4.
View of the street and the Palais des festivals.
Very spacious living room.
Small bedroom.
Separate kitchen.
Shower and toilet.
Asking price – 295 000€.

This is all about position….Read more

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Cannes – Palm Beach.
One bedroom apartment.
• 45m² of internal living space.
• 14m² of balconies.
• Orientation west and east.
• Views clear across Palm Beach.
• 3rd floor of 5.
• Living room with spacious balcony.
• Bedroom with spacious balcony.
• Equipped kitchen.
• Bathroom and separate toilet.
• Cellar in the basement.
• Asking price – 320 000€.

In the very heart of Palm Beach in a quiet street of understated apartment buildings….Read more

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House in Palm Beach
To be sold as a unit or separately as two apartments

Ground floor – One bedroom apartment. First floor – Two bedroom apartment.

65m² of internal living space                75m² of internal living space
Ground floor                                               1st & top floor
Orientation south & east                         Orientation south & east
Double living room                                   Living room
Open plan equipped kitchen                  Open plan equipped kitchen
1 Bedroom with walk in closet              2 Bedrooms
En suite bath room                                    En suite bath room
Shower room and toilet                           Shower room and toilet
Ample cupboards and storage               Ample cupboards and storage
Air-conditioned                                         Air conditioned
Asking price 320 000€                           Asking price 373 000€

Together – 693 000€

This is an early 20th century house in a quiet street in Palm Beach, divided into two completely separate apartments….Read more

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Cannes – Palm Beach.
Two bedroom apartment.
• 56m² of internal living space.
• 12m² balcony.
• Construction 1900.
• Orientation east, south, west.
• 2nd floor of 2.
• Views unobstructed of Palm Beach.
• Large living room – double windows.
• Two bedrooms.
• One bathroom.
• Separate toilet.
• Asking price – 425 000€.

The top floor of this charming 1900 building has been entirely renovated to a high standard. The result is this two bedroom apartment with triple exposure (east, south, west) from its lovely second floor terrace….Read more

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Villeneuve-Loubet.
Two bedroom beach house.
• 90m² of internal living space.
• Single storey – built 1975.
• Orientation full south.
• View – garden.
• Large living room.
• Two small bedrooms.
• One bathroom.
• Open plan kitchen.
• Huge cellar / downstairs bedroom.
• Parking.
• Asking price 435 000€.

This apartment or small villa is “atypical”. It is a single story beach-house in a short row (of maybe 8 units) of similar beach houses…. Read more

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Palm Beach .
Two bedroom apartment.
• 67m² of internal living space.
• 18m² of balcony.
• Construction 1990.
• Orientation south west.
• 1st floor of 4.
• 2 bedrooms with balcony.
• 2 bathrooms.
• Garage.
• Cellar.
• Asking price 435 000€.

This apartment is in a quality building in a quiet section of Palm Beach just 100m from the Port Moure Rouge on Palm Beach’s eastern shore… Read more

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Palm Beach.
One bedroom apartment.

• 55m² of interior living space.
• 13m² of west facing terrace.
• 2nd floor of 5.
• Orientation east and west.
• Large living / dining room.
• Large bedroom with dressing room.
• Bathroom and separate toilet.
• Separate kitchen.
• Garage in the basement.
• Cellar.
• Asking price – 445 000€.

This apartment is in the heart of Palm Beach a hundred metres from the famous and lively village atmosphere of the Place de l’Etang…. Read more

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Vieux Le Cannet.
Two / three bedroom townhouse.
• 120m² of interior living space.
• South facing terrace.
• Construction 1880 – 1900.
• Orientation south.
• Views of Le Cannet.
• Street level garage & storage.
• Ground floor living room & kitchen.
• 1st floor two bedrooms and bathroom.
• Top floor studio & terrace.
• Asking price – 551 000€.

This is a charming old home right in the heart of Old Town Le Cannet, authentically French with all of its elegance lovingly and carefully restored. It is a quaint and picturesque piece of history – and very low on maintenance. Everything has been renewed, from the plumbing to the electrics and a complete new roof, and we are left with unspoilt Provencal charm entirely intact…. Read more

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Basse Californie.
Two bedroom apartment for renovation.
• 94m² of interior living space.
• 26m² of terrace.
• 10m² loggia.
• 6th floor of 6.
• Orientation east, south, west.
• View unobstructed to the sea.
• Construction 1975
• 2 Bedrooms.
• 2 Bathrooms.
• Large living room and kitchen.
• Needs complete renovation.
• Very large garage
• Asking price – 1 050 000€

Position and view – in a very high quality building. That is what you are buying here…. Read more

PLATINUM PROPERTIES – November 2011

Golfe Juan.
Two bedroom duplex apartment.
• 77m² of living space.
• Small balcony.
• 2nd and 3rd floor of 3.
• Orientation south.
• View – magnificent.
• 2 bedrooms.
• 2 en-suite bathrooms.
• Guest toilet.
• Open kitchen – sea view.
• Asking price – 545 000€.

This is one of those apartments that words cannot adequately describe and the pictures don’t begin to do it justice! It has to be seen.

Situated on the front right opposite the very charming Quai St. Pierre in Golfe Juan, and occupying the top two floors of a small building, the apartment has been beautifully and lovingly renovated. It is quite delightful…. Read more

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La Croix des Gardes.
Three bedroom apartment.
• 107m² of internal living space.
• 70m² of terraces.
• 170m² of private garden.
• Orientation N/S/E/W (360°)
• Open views – La Croix des Gardes
• Small view of the sea.
• Garden level of 3 floors.
• Construction 2005.
• Large living room.
• 3 bedrooms.
• 3 bathrooms.
• Open plan kitchen.
• Separate guest toilet.
• Large garage.
• Asking price – 950 000€.

This is a lovely apartment that really should be seen! Read more

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Petit Juas.
Exceptional 3 Bedroom Penthouse.
• 130m² of living space.
• 135m² of roof terrace.
• Top floor of 8.
• Construction 1985.
• Panoramic views 360°.
• 3 Bedrooms.
• Two bathrooms.
• Glorious living room.
• Jacuzzi.
• Two garages.
• Asking price – 1 595 000€.

This is a truly gorgeous apartment occupying the top and 8th floor of a fairly recent building for the area which is otherwise largely “Old French” in character…. Read more

Just Villas

Mougins – St. Basile.
4 Bedroom villa.
• 135m² of interior living space.
• 1630m² of land.
• Orientation south and west.
• Construction 1969.
• 4 Bedrooms.
• 2 Bathrooms.
• Separate studio apartment.
• View open to the village.
• Pool house.
• Utility room.
• Outdoor kitchen / barbecue.
• Asking price – 1 150 000€.

The secluded gated domain of Sainte Basile in Mougins is popular for its quiet and for its position which is very close to all the amenities Mougins has to offer…. Read more

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La Garde-Freinet.
3 /4 Bedroom villa with beautiful views.
• 240m² of internal living space.
• 8200m² of land.
• Orientation south.
• Construction 1981.
• Hills falling to a small sea view.
• 3 Bedrooms (4th possible)
• 3 Bathrooms (one a Jacuzzi)
• Gorgeous terrace with Barbecue.
• Pool house.
• Garden shed.
• Caretakers’premises.
• 2 Car garage.
• Asking price – 1 300 000€.
This charming villa is just 850m from the 11th century mediaeval village of La Garde-Freinet, itself established on the 9th century site of the Moorish village of Fraxinet. It lies in the heart of the department of the Var, less than an hour from St Tropez…. Read more

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Basse Californie – Cannes.
4 Bedroom villa.
• 350m² if internal living space.
• 1000m² of land.
• Orientation south and east.
• Views clear – garden.
• Huge living room,
• Equipped kitchen.
• 4 Bedrooms.
• 4 bathrooms.
• Laundry.
• Garage & car shelter.
• Asking price – 3 200 000€.

This beautiful villa in the heart of the most exclusive suburb of Basse Californie is less than five minutes to the centre of Cannes, and less than five minutes to the chic beaches of La Croisette! And yet it is quiet and tucked away in a leafy nook…. Read more

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La Californie / Montfleury – Cannes.
New four bedroom villa.
• 400m² of living space.
• 1220m² of land.
• Construction 2010.
• Style “bastide”.
• Reduced transfer charges.
• Orientation east and west.
• View clear greenery.
• 100m² living room.
• Equipped spacious kitchen.
• Dining room.
• 4 Bedrooms.
• 4 Bathrooms.
• Parking for numerous cars.
• Asking price – 3 600 000€.

This magnificent new villa in the traditional “bastide” or French country house style is on the edge of La Californie and Montfleury suburbs, in the foothills of Cannes… Read more

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St Jean de l’Esterel.
8 Bedroom villa – with a view!
• 750m² of living space.
• 12 000m² of land.
• Orientation south.
• Views panoramic.
• 150m² Living room.
• 8 Bedrooms.
• 8 Bathrooms.
• 9 Toilets.
• 2 Kitchens.
• Completely separate apartment.
• Garages and heliport.
• Asking price – 3 600 000€.

This extraordinary property on more than a hectare of land sits proud in the hills of the Esterel, east of Cannes and overlooking the Bay of Cannes…. Read more

Critical to short term rentals in Cannes and to Cannes Property Sales is the conference market.

What are all these Conferences?

There are many, from dental and medical conferences, to gaming, magicians’ and circus gatherings, but some of the bigger ones are:

MIPCOM: The World’s Audiovisual Content Market
Month: October
Duration: 5 days
No of attendees: 11 000 from 522 companies representing over 95 countries.
MIPCOM is a TV programme market, where mobile networks, character licensors, merchandisers and advertising companies, producers and distributors build alliances for the future; existing producers find new sources of revenue.

Tax Free World Exhibition:
Month: October
Duration: 5 days
No of attendees: 5289 people from 2638 companies.
TFWA World Exhibition brings together the industry’s most prestigious luxury brands and attracts thousands of key buyers, airport authorities, agents, distributors and journalists from around the world. The exhibition is the industry’s key event for recognising new trends & acquiring a global view of the international market.

MAPIC: The International Market for Retail Real Estate
Month: November
Duration: 3 days
Number of delegates: 6 458 delegates from over 55 countries.
MAPIC is the leading market for the expanding industry of international retail real estate. It attracts all the key players, creating a unique community in one place at one time. MAPIC provides an exclusive platform for companies to showcase new concepts and developments.

International Luxury Travel Market (ILTM)
Month: December
Duration: 3 days
Number of delegates: 52 countries.
The Luxury Travel Market (ILTM) is the only global trade event dedicated to enabling specialist luxury travel buyers from the world’s top 52 outbound countries to meet with the worlds leading luxury travel suppliers. Specialists in the luxury travel market have very specific needs which cannot be satisfied by their mainstream counterparts. It is therefore a trade medium that is focused exclusively on this sector.

MIDEM: The World’s Biggest Music Market
Month: January
Duration: 5 days
Number of delegates: 10 000.
MIDEM’s music conference brings the heart of this ever-evolving industry to Cannes. It enables people involved in the music industry to discover new sounds and services, explore business opportunities, learn about tomorrow’s industry, make deals, enjoy live music…. and party!

MIPIM: The World’s Property Market
Month: March
Duration: 5 days
No of attendees: 18 000 from 2051 companies.
MIPIM is The World’s Property Market where advisors, developers, regional authorities, investors and corporate end-users gather information about new building projects and initiate deals and partnerships.

MIPDOC: The International Showcase for Documentary Screenings
Month: March/ April
Duration: 2 days
Number of participants: 1000 participants from 386 companies & 61 countries.
A relaxed two-day event in the lead-up to MIPTV

MIPTV featuring MILIA: The World’s Audiovisual Content Market
Month: April
Duration: 5 days
No of delegates: 12 000 delegates from 99 countries.
The World’s Audiovisual and Digital Content Market attracts all the global movers and shakers in the world of television. This annual event is the context for negotiating programme rights, co-productions and partnerships

Cannes Film Festival
Month: May
Duration: 10 days
No of attendees: 30 000.
The Cannes Film Festival is the world’s most prestigious forum for the exposition of all styles, schools and genres of film. As well as being the most special place for film industry professionals to meet, the festival is especially concerned with recognising the talents of the artists that contribute to the growth of the medium.

Cannes Lions Advertising Festival
Month: June
Duration: 7 days
No of attendees: 75 countries.
The Cannes Lions International Advertising Festival is the only annual gathering of the world’s advertising, creative, direct marketing, interactive, film, radio, media, sales promotion and marketing communities.

Cannes Boat Show
Month: September
Duration: 5 days
Size: 50 000 visitors, 650 Yachts!
For exhibitors from the luxury yachting and pleasure boating community this is the industry’s premier event. There are at least 50,000 boating enthusiasts that visit the show and one can expect to see 450 boats in the water – including 360 motor boats and 90 sailing boats – and 200 boats on land.

How to enjoy a holiday home, but also make a healthy profit.

Extracts from an article by Parmy Olson who is the London Bureau Chief of Forbes Magazine.

Plenty of people like the idea of owning a second home in Europe for regular, cultured vacations. Many stop fantasizing once they realize they’ll also have a second mortgage on their hands. But what if that second property could make them money?

Canny investors can put a second property to work on several conditions: They’re willing to rent it out to short-term tenants for the times they aren’t there, they can afford property in the $1 to $2 million range (€730,000 to €1.5 million) and, crucially, if they buy in the right locations.

Prime real estate broker Debbie Dove says there are two European hotspots offering short-term rental yields upwards of 5%: London and Cannes. Each city requires a different approach.

Short-Term View

London is a transient rental market, with thousands of people passing through every year on business trips that can last for months on end. It’s these folks, the ones who’d rather avoid the sky-high rates offered by London’s hotels, who make good potential renters throughout the year.

There’s no peak season for short-term letting in London, so a buyer has the flexibility to decide when they want to stay for their own vacation.

Rents in Cannes soar during the Monaco Grand Prix

Ms. Dove, who has built up an £80 million fortune and a property empire that includes the former homes of Robert Louis Stevenson and Charles Dickens, says the idea of short-term buy-to-let in what real estate agents call “prime London” is already popular with Middle Eastern property buyers.

But there are caveats to London. Stamp duty on British real estate rose this April to 5% from 4%. Also, to capture juicy yields from short-term buy-to-let, buyers must fork out for the most top-notch property in some of the city’s most exclusive areas. Ms. Dove typically brokers houses in Mayfair, Hampstead and Knightsbridge, which play host to some of the most expensive properties in Europe, much less the world. “There’s no demand in London for anything that’s not top notch,” she says. “Everyone is looking for quality.”

Yields? Cannes Can

Ms. Dove’s second recommended hotspot is Cannes in Southern France. The area is a little more complicated for letting, but it offers sunny local weather for regular vacations while a stream of glittery events through the year make for a transient market that’s perfect for short-term letting.

Properties in and around Cannes can fetch eye-wateringly high rental income during the annual Cannes Film Festival, the Monaco Grand Prix and during the regular conferences like property trade fair MIPIM or MIDEM, the world’s largest music industry trade fair.

A three-bedroom apartment on the highly desirable Boulevard Croisette will set you back an initial £1.5 million, but bring in £7,000 a week in rent during the three weeks of the Cannes Film Festival, says Ms. Dove. The same goes for the Monaco Grand Prix, which takes place in Monaco but sees many of its participants stay in Cannes. The trick to achieving rental yields of 5% in Cannes is timing the letting of a property around the many events that take place nearby.

The prime period is the summer months of May, June, July and August, meaning you could leave the property vacant for your own holiday there in September, and rent it out again for the remaining months of the year at a lower rate. Winter months will achieve 50% of the very high rental rates of the summer. But even a year that’s spotty with high yields is better than letting on a 12-month contract, says Ms. Dove.

Property investors will find it almost impossible to find similarly-high yields from other parts of France where buyers might be tempted by the prospect of a cosy chateau or picturesque vineyard. The market for short-term letting of these properties is almost non-existent. “People take root in these properties,” Ms. Dove explains. “It’s a totally different market.”

Then there’s the market for ski properties, including chalets and ski apartments in places like Switzerland. The problem here is that achieving any sort of decent yield requires properties with purchase prices in the €20 million range, well beyond the budgets of most property investors. “For the short-term letting and good yields, its prime London and Cannes,” says Ms. Dove. “It’s as limited as that.”

Luxury Property Index October 2011 :“Boost in French Riviera Holiday Home Sales”

The number of properties for sale on the Cote d’Azur priced over €1m decreased by 8.89% in October. It is expected that the sale of luxury properties will continue to increase however as prices are coming down.

> The average price for a luxury property has dropped by 3.76% due to the euro-crises and new tax laws

> Property sales have increased by as much as 8.89% since September, mainly due to property price reductions

> Quality property in prime location is still in strong demand

Great article from ft.com

Cannes loves putting on a show. The French Riviera resort does exactly that every year, with what has become, since 1946, the world’s most prestigious film festival. So hosting the latest G20 summit is the sort of big international event the city can take in its stride.

Of course some of its 80,000 or so local residents will inevitably complain of the disruption the G20 will provoke, with all its security measures and motorcades of heads of states and their entourages.

After all, this is a time of year when the city, with its promenade (the “Croisette”), its grand hotels and casino, its marina stuffed with fancy yachts, its markets and smart shops, becomes rather pleasantly quiet yet still sunny after the hustle and bustle of the summer season.

But then Cannes is no longer the exclusive winter resort of the old British aristocracy that flocked to the Riviera after Henry Brougham, the lord chancellor of Great Britain, discovered this sleepy Mediterranean fishing village in the 1860s and put it firmly on the high society map.

Later, American literati, including the writer Scott Fitzgerald, made Cannes and its immediate surroundings even more fashionable and famous.

These days, the city relies on its film festival, boat show and other big events and conventions to keep its economy, which relies mainly on tourism, turning all year.

The tourist season has now shifted from winter to summer, but Cannes’ good transport facilities – the busy international airport at Nice is close by and high speed TGV trains serve its station – have made it an attractive convention centre competing with its much bigger neighbour Nice and, a little further down the coast, Monaco.

The seaside city also serves a high-technology cluster in the neighbourhood, even though the Sophia Antipolis technopolis has never really lived up to its early ambitions of becoming a French Silicon Valley.

But Cannes can boast a role in the European space industry with the headquarters of the Franco-Italian Thales Alenia space venture a few miles away at Mandelieu. It is one of Europe’s leading satellite manufacturers.

Cannes’ balmy climate – tender indeed are its nights, as Scott Fitzgerald noted – and privileged position have also made it increasingly popular with French and European retirees, helping to prop up local property prices even during the current economic downturn.

The Carlton hotel is still there, with its twin domes representing the breasts of the belle époque courtesan Caroline “la belle” Otero, and so are the other Croisette grand watering holes – the Martinez, the Majestic and the Grand Hotel, and at the tip of the Cap d’Antibes Eden Roc.

These hotels no doubt will be teeming with heads of state, their mandarins, central bankers, ministers, security guards and journalists during the summit.

It is undoubtedly occasions like this that help maintain the profile of Cannes and the Riviera at large on the international stage. It also seems appropriate that President Nicolas Sarkozy chose Cannes to host the present G20 meeting.

It is bound to provide as much drama and suspense as the Cannes Film Festival itself but without, some may regret, quite the same colourful and frivolous cocktail of glamour, gawpers, baubles, bangles and beads. Yet you never know.

Not everyone who wishes to buy property in the South of France is doing so purely as an investment, but by the same token nearly everyone wants their property to be a good investment whatever the underlying reason for owning it.

Holidays and the sheer pleasure of owning a villa on the Cote d’Azur for example can be combined with a healthy income stream even in difficult financial times.

We are unlikely to see the back of this recession for a few years but we who are personally invested in both property and shares, and at the risk of annoying those readers who are heavily or professionally involved in the shares market, my own experience is that top quality property has held its value considerably better than shares have.

This may be because bricks and mortar are more tangible than shares, or because our property is in a prime area and very much in demand, or because companies can stop paying dividends while prime property will continue to achieve a rental return, albeit on a reduced basis in tough times.

Most likely it’s a combination of all three, but for me investment in property in the south of France continues to be the wisest choice.

This from a recent article I read on the South African based “Moneyweb” site:

“Generally, however, property does attract the investor anxious to avoid any significant risk and possibly lacking the resources to go it alone without gearing. By contrast, shares can be right for the person who studies the Securities Exchange daily and is really well informed on the likely future performance of every share he buys. This can be a very time-consuming operation and therefore again not suited to the amateur or inexperienced investor who is probably best advised to stick to property.”

My feeling entirely after what has happened in the last few years.

Home of the very best investment property in the south of France.

Cannes has been chosen to host the 6th annual G20 Summit during the week of 3rd/4th of November. The Palais des Festivals will host the heads of government of the 19 core members of the G20 major economies and the European Union which will be represented by its two governing bodies, the European Council and the European Commission.

In all they represent 85% of the world’s gross national product, 80% of world trade and two thirds of the world’s population.

Also attending in their official capacities will be a number of invited states, and international organisations such as the European Central Bank, the IMF, the African Union, the United Nations, the World Bank, ASEAN and many others.

Here’s a part of their agenda for you to think about – it is no small task ahead!

• Coordinating economic policies and reducing global macroeconomic imbalances.
• Strengthening financial regulation.
• Reforming the International Monetary System.
• Combating commodity price volatility.
• Improving global governance.
• Working on behalf of development.

Comment posted on 1st November 2011.

With the G20 about to kick off in Cannes we are in almost complete lockdown for a few days. This morning Vicky and I tried to run along the Croisette but the whole centre of Cannes is barricaded off so we were turned around.

There are road closures, police and army parked up every side street ready to react if required, and the helicopter traffic is constant. We have never known it like this in our quiet and peaceful Cannes – but given the guest list (25 heads of state and their huge entourages) it’s not surprising.

We just hope that all this preventative security is just that, and that the G20 turns out to be positive, and useful to us all. They certainly tackle the biggest issues, and need to.
Watch this space….

If you are amongst the many discerning people who hope one day to find the perfect apartment for sale in Cannes, to buy an investment property in the south of France or own your own villa on the Cote d’Azur you’ll want to read what “International Living” magazine has to say.

Herewith extracts from their 30th year of producing their authoritative index:
“Countries are ranked in 10 categories – Cost of Living, Culture, Leisure, Economy, Environment, Freedom, Health, Infrastructure, Safety and Risk, and Climate.

As usual, the rankings have provoked equal shock and happiness from different quarters – Brits seem exceptionally upset, although not surprised, that their ranking has dropped below that of the Czech Republic.”

In the 2010 Quality of Life Index, 194 Countries were Ranked and Rated to Reveal the Best Places to Live.
“Every January, we rank and rate 194 countries to come up with our list of the places that offer you the best quality of life. This isn’t about best value, necessarily. It’s about the places in the world where the living is, simply put, great.

For the fifth year running, France takes first in our annual Quality of Life Index. No surprise. Its tiresome bureaucracy is outweighed by an unsurpassable quality of life, including the world’s best health care.

France always nets high scores in most categories. But you don’t need number-crunchers to tell you its bon vivant lifestyle is special. Step off a plane and you’ll experience it first-hand.”

Five of the top 7 luxury real estate markets in the world are in France, and Cannes property sales come in at No 7 according to a joint study by Knight Frank and Citi Bank published on 6th July 2011. Here is the original article in L’Express – in French.

What it says quite clearly is that investment property in Cannes is some of the most sought after property in the world and a very safe investment in a world where we all know that, love it or hate it, “the rich get richer and the poor get poorer”. We know that Cannes and Saint Jean Cap Ferrat and other key enclaves on the French Riviera did not feel the effects of the recession as the rest of the world did. Because the wealthy are cushioned from many of the ill effects the markets quietened but hardly dipped. The same we know to be true of other destinations on the list below:

1. Monaco
2. London
3. Saint Jean Cap Ferrat
4. St Tropez
5. Paris
6. Courcheval
7. Cannes
8. Tokyo
9. Hong Kong
10. Singapore
11. Cyprus
12. Sardinia
13. Guernsey
14. Geneva
15. Aspen
16. Moscow
17. New York
18. Cortina (Italy)
19. Mosquito Island (Caribbean)
20. Meribel

(This is not a legal document – it is a layman’s understanding of the law. If a legal opinion is required, please contact the writer who will refer you to his advocate, a recognised expert in the field)

Q.
Should I buy property in the South of France in my own name, in the name of my offshore trust, or should I create an SCI?

A.
It was bad before but under new legislation (August 2011) it just got worse for trusts in France if the constituents or beneficiaries are French resident, or if they own any asset in France.

Constituents or beneficiaries will be taxed under common law.
If the constituent dies and the beneficiaries are not known (or remain anonymous) then the estate will still be taxed at 60%.

After death the beneficiaries automatically become the ‘new constituents’ of the balance of the estate after taxes, and the same law applies.
Therefore it perpetuates itself down the generations.

The problem is that Trusts are not recognised under French law, being regarded as a foreign juridical creation specifically for the purpose of placing assets under an administrator in the event of the constituent’s death, in the interests of one or more beneficiaries, and for the realisation of the single objective – tax avoidance.

So it’s a very bad idea to transfer property in France into a trust, or to buy property in the name of a trust. Period.

Q.
But there’s an apartment for sale in Cannes at the right price, in the right location, what should I do?

A.
The SCI is another story, and used properly it is the perfect vehicle for property ownership in France including shares and investments. It can hold all classes of assets under the same conditions.

• One is able to dilute the ownership by allocating shares in the SCI amongst family or other interested parties / partners.
• The constituents of an SCI need only own a very small percentage of the “nue propriete” or “bare ownership”, even as little as 1%.
• In a typical example parents might own 5% each and their three children own 30% each on the assumption that the parents are likely to pre-decease the children. (That is of course an individual choice and calculation.)
• If any one of the parents were to die taxes are calculated on their share of the “nue propriete”.
• In most cases their 5% wouldn’t even reach the threshold, so their assets would pass free to their children.
• After death the children are free to bring their children in to the SCI on the terms below.

Important point – it is not advised (although not illegal) to bring minors into an SCI if there is a loan – if the SCI owes money it might be deemed that the risk of leaving the children with debt is too great.

However if the SCI doesn’t owe money (or if the children are older) one can donate 156 000€ per parent, per child completely free of any tax. So each child can receive 312 000€ free, providing the parents are less than 61 years of age.

The calculation of the value of any property is done on a simple market valuation (by a registered estate agent).

The total cost of the exercise of bringing in the children might reach 5 000€ but may be less, and it is comprised of notary fees, transfer fees, registrations and some admin.

The parents are able to retain 100% of the usufruct of the SCI until death, so all decisions are theirs to make, and they have lifetime use of the properties, total jurisdiction over them, and the sole use of their fruits. i.e. they have 100% of the vote.

If there are any specific questions please ask – I will get answers from the advocate if I don’t know the answers myself.