Did anyone see this http://women.timesonline.co.uk/tol/life_and_style/women/the_way_we_live/article6149246.ece in the Sunday Times this week?
If you’re constantly put off moving lock, stock and barrel to France by scare stories in the press, this story on the thriving British community in France, buoyed by the superior French economy – which has sustained many a Brit expat over the years and continues to do so even in the current financial climate – should fill you with cheer.
Yes, times are hard for all of us right now. But those expats who risked it all on the Spanish market are decidedly worse off than most and are returning to the UK penniless, with their tail between their legs. Meanwhile, Brits living it up in France are cutting back on the odd luxury but the suitcases are still safely stowed in the attic where they belong.
At the moment, I’m sub-editing a very informative article for our June issue, written by regular contributor Peter-Danton de Rouffignac, in which he examines the state of the French economy in detail. And the conclusion? Crisis, what crisis?
Indeed the French economy looks positively rosy compared to its sickly neighbours. Yes, France is suffering from the global downturn, but it’s built up a strong immune system over the years, and with one of the best healthcare systems in the world, it will bounce back to rude health in no time – no swine flu here...
Budget build up
I’m sure you’re all waiting on tenterhooks for the budget announcement tomorrow. With Darling set to announce a series of measures aimed at helping hard-pressed homeowners in the UK and boosting mortgage availability, perhaps you’ll finally be able to sell up and realise that long-held dream of moving to France.
French Property News has secured the services of Stephen Hughes, Director at Foreign Currency Direct, who will be breaking down all that budget jargon into plain English for us mere mortals following the announcement tomorrow. See our daily news section on the FPN home page for information on how the budget will affect the housing market both here and in France.
It might interest you to know that Sarkozy has already ushered in a series of measures aimed at stimulating the French housing market. Introduced in France’s 2009 budget in January, the Loi Scellier is the latest scheme offering tax-breaks to buy-to-let investors – joining the Robien, Borloo and leaseback schemes.
Buying a second home or investing in property might not seem prudent in the current market but with interest rates at an all time low in the UK and Eurozone, if you’re a saver, your money won’t be benefiting from a stint in the bank right now. You may be pleasantly surprised by the competitive rates of return that can be generated on French investment property – luckily for you, we’ve included a definitive guide to euro-busting investment purchases in the May issue (out 29 April).
Dispatches: Crash, bang, wallop
Cooking with half an eye on the television, as is my habit of an evening, I almost burnt my chilli con carne, so absorbed was I by Channel 4’s Dispatches; Crash – How the banks went bust yesterday evening.
It made me think. One of the main reasons that the French property market has fared considerably better than its sickly neighbours (will Spain and the UK please stand up!), is its strict approach to lending. The UK and US could certainly learn a thing or two about mortgages from L’Hexagone. France’s superior regulation has helped to keep the country’s financial system ticking over, despite the wider worldwide malaise. Yes the recession has hit home in France too, but later and to a lesser extent than elsewhere.
Why? Not only did French banks spread their risk more evenly (Incidentally, have those bankers never heard the phrase ‘don’t keep all your eggs in one basket’?), but those of you familiar with the French mortgage application process will already know that French banks impose strict lending criteria on mortgage applicants. French banks do not use salary multiples to calculate how much to lend, instead basing their decision on the proportion of income dedicated to the repayment of all loans and mortgages. If this figure exceeds a third of your total net income, a French bank will not lend you a single centime. It is illegal to bounce a check in France and credit cards as we know them in the UK do not exist. French people do not run up scary debts. This is not because they are more financially astute than the rest of us, but simply because they are not allowed to. I’m surprised that the ultimate nanny state (aka the UK) has yet to catch on to this new angle on its-for-your-own-good politics – surely there’s a whole host of public service announcements and educational pamphlets that could be cooked up at vast expense to the taxpayer? I hope Darling has saved a sous or two in his budget!