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Realistbear

France: Hpi Is Over

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http://www.telegraph.co.uk/property/main.j...cebargain09.xml

France: it's time to drive a hard bargain
(Filed: 09/09/2006)
Page 1 of 6
Tour de France
Bargains on the market
Show time
For the natives, the party's over. But for Brits, plummeting house prices offer golden opportunities, says Chris Wilson
"I tell them the price is too high but they say - and forgive me for mentioning it - that
there's always another stupid Englishman along who will pay anything,"
he says....
Not any more. The party's over.
The estate agents say they are undergoing a period of "stabilisation", but poke a little deeper and you'll find that house prices are falling in France. The most recent figures from FNAIM, the national estate agents' organisation, suggests there has been a drop of 0.3 per cent nationally in country properties in July - and that's an average. In certain regions the fall will have been much greater and, as the agents themselves point out, August has been even worse....../
M Laquerrier in the Loire explains that "there is a culture where people in the country bid each other up. They say so-and-so got €400,000 for his barn, so I have to get €500,000 for mine, without any understanding that the British won't pay that any more." Recently he acted as an agent for a sale where the original
asking price was originally €225,000, but the property was recently sold for a mere €130,000 - a massive drop
that he, too, blames on plain greed.

IMO, the market is already in crash mode. It starts wtih savvy investors pulling out of BTL leaving the sheeple as the only one's "investing." Then its the second home market that starts to crash with overseas homes going first then the domestic "investments." As the crash gather's pace the BTLs go up for sale and overgeared OO's try to sell to downsize or STR. Its a process and all the signs are in place to indicate its happening.

Edited by Realistbear

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Guest grumpy-old-man

http://www.telegraph.co.uk/property/main.j...cebargain09.xml

France: it's time to drive a hard bargain
(Filed: 09/09/2006)
Page 1 of 6
Tour de France
Bargains on the market
Show time
For the natives, the party's over. But for Brits, plummeting house prices offer golden opportunities, says Chris Wilson
"I tell them the price is too high but they say - and forgive me for mentioning it - that
there's always another stupid Englishman along who will pay anything,"
he says....
Not any more. The party's over.
The estate agents say they are undergoing a period of "stabilisation", but poke a little deeper and you'll find that house prices are falling in France. The most recent figures from FNAIM, the national estate agents' organisation, suggests there has been a drop of 0.3 per cent nationally in country properties in July - and that's an average. In certain regions the fall will have been much greater and, as the agents themselves point out, August has been even worse....../
M Laquerrier in the Loire explains that "there is a culture where people in the country bid each other up. They say so-and-so got €400,000 for his barn, so I have to get €500,000 for mine, without any understanding that the British won't pay that any more." Recently he acted as an agent for a sale where the original
asking price was originally €225,000, but the property was recently sold for a mere €130,000 - a massive drop
that he, too, blames on plain greed.

IMO, the market is already in crash mode. It starts wtih savvy investors pulling out of BTL leaving the sheeple as the only one's "investing." Then its the second home market that starts to crash with overseas homes going first then the domestic "investments." As the crash gather's pace the BTLs go up for sale and overgeared OO's try to sell to downsize or STR. Its a process and all the signs are in place to indicate its happening.

when we rented our French house out, we spoke to the local immobiliers & we were told some stories that make the eyes water.....

1 english couple bought a property for 500k euros & put it up on the market for 800k euros without any changes to the property at all (1 year time frame)

another in our local village, bought in 2004 for approx 200k euros & it's up for 385k euros, the only addition was a small swimming pool & a lick of paint.

they are both still for sale apparantly, the agent told me that they have no chance of anything anywhere near the prices they are asking as they had already "overpaid" for the property in the first place. :lol:

we met a few english out there that had taken mortgages but could not speak the lingo or find proper work......what will happen with them when the rates go up & prices fall.

However it had to be said that the majority had bought for cash so would be unaffected I suppose, just like us.

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when we rented our French house out, we spoke to the local immobiliers & we were told some stories that make the eyes water.....

1 english couple bought a property for 500k euros & put it up on the market for 800k euros without any changes to the property at all (1 year time frame)

another in our local village, bought in 2004 for approx 200k euros & it's up for 385k euros, the only addition was a small swimming pool & a lick of paint.

they are both still for sale apparantly, the agent told me that they have no chance of anything anywhere near the prices they are asking as they had already "overpaid" for the property in the first place. :lol:

we met a few english out there that had taken mortgages but could not speak the lingo or find proper work......what will happen with them when the rates go up & prices fall.

However it had to be said that the majority had bought for cash so would be unaffected I suppose, just like us.

I bought a place in the Alps for €285K in 2002 and completed the sale of it in April (after the ski season of course) for €400K to another English chap. After tax and EA fees the return was not that great, but I'm moving on and I effectively skied for free for 4 years under "JYs GAAP". Can't be a ski bum for ever. My agent tells me I sold at a good time, the market has stalled. B)

JY

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I bought a place in the Alps for €285K in 2002 and completed the sale of it in April (after the ski season of course) for €400K to another English chap. After tax and EA fees the return was not that great, but I'm moving on and I effectively skied for free for 4 years under "JYs GAAP". Can't be a ski bum for ever. My agent tells me I sold at a good time, the market has stalled. B)

JY

This is the key--knowing when to get out. So many people get burned because they "just cannot believe" prices can go down. When prices begin to stall people become frozen and "hope" for a soft landing. Once the market begins to crack they still do nothing and insist on getting peak prices despite the fact that all around them is crashing. Its an odd psychology at play and has much to do with pride IMO.

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This is the key--knowing when to get out. So many people get burned because they "just cannot believe" prices can go down. When prices begin to stall people become frozen and "hope" for a soft landing. Once the market begins to crack they still do nothing and insist on getting peak prices despite the fact that all around them is crashing. Its an odd psychology at play and has much to do with pride IMO.

Bloody French letting their property prices fall like that, it's just not Cricket I tell you.

<_<

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Les rosbifs vont avoir ce qu´ils méritent ! :lol:

Any French visitors can feel free to correct my French - but that´s my attempt to say the greedy Brits ("Roast Beefs") are going to get their comeuppance.

Edited by Caledonian-Emigre

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So if British investors are getting wary of France, I wouldn't be surprised if they are behaving the same way in Spain.

With a drop in N. European demand for S.Europe property could there be a 'domino effect'?

I'd like to think so, but can't off the top of my head work out why and how. It could also happen otherwise, e.g. the German market seems to have been less affected from the last few years' madness. Can a bubble in market A be immune from a crash/correction in market B?

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I know of a similar story...I have a french friend who works in London but is renovating property she bought a while back in a small french village about 1 hour from Toulouse. She showed me a property next to her house which needs complete renovation and sits on very little land, its on the market at.... BRIT PRICE - 150,000euro. She was interested in buying the property and was told by the french owner if he doesnt sell it in 12 months it's hers for 75,000euro, which as my friend says is the real value of the property.

Talking of SKI profits!!! I viewed a property in a ski resort recently more out of curiosity than intention to buy. The apartment was on the market for 750,000 euro for 75sqm (750 square feet), it was a small and badly laidout 2 bed apartment with micro terrace, more unusable space than i have ever seen (typical brit ski developer - trying to put more apartments in than making fewer which are actually habiltable!). You couldn't live in it for more than a few months as it was so pokey, so your only option was to rent in peak season. The owner was english and had bought the property 18months ago and renovated it from a lovely house to 4 crap apartments. She looked hopeful at me and asked my interest, to which i replied "i cannot see a good return on investment on this property I would be better putting my money in the bank!", her response was "well of course this is (town near chamonix), what do you expect". I walked away laughing!

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  • 342 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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