Controversial Rent Caps come into Force in Paris
August 1st saw all new or renewed rental leases in the French capital being capped as President François Hollande made good on one of his key 2012 campaign promises for sweeping housing reform.
The rent control regulations will limit rents in Paris to 20% above and 30% below a neighbourhood’s average and is based on apartment size, year of construction and location with an additional surcharge for luxury homes.
However, critics say that real estate investors will be deterred from the Parisian market and while the wealthiest tenants stand to benefit from the new rent caps, less wealthy renters are likely to suffer.
Critics Warn New Regulations will Deter Property Investors
Jean-Francois Buet, chairman of FNAIM, France ‘s largest residential property-broker federation said the mechanism is ” dangerous because the framework is deterring investors who, faced with the lack of freedom will choose other investments “.
There are rising concerns that the regulations will slow renovation works by apartment owners, increase landlord-tenant litigation and create affordability issues for many existing tenants, according to residential property managers Foncia.
When the rent control proposals were published in June this year, Foncia Chairman Francois Davy said: ” The most expensive rents will probably drop but still won’t be occupied by modest-income earners. An apartment rented for €10,000 per month in a fancy neighbourhood will drop by 30%, while in more working class areas an extremely low rent risks climbing 10% on average “.
80,000 Paris Rental Leases affected by New Legislation
Around 80,000 new rental leases are signed in Paris each year with around one in five being subject to capping, according to Observatoire des Loyers de l’Agglomeration Parisienne (OLAP), the association mandated by the government to compile Paris rents. OLAP report that of these a third will drop by less than €50 per month, a third by €50-€100 and the rest by more than €100.
The measure could decrease the rent for around 60,000 dwellings in the capital in the coming years, according to business daily Les Echos. It could also raise rents for around 25,000 homes, the French newspaper added.
However there is strong public support for the new regulations and also from France’s main environmental party, Europe Ecologie-Les Verts with spokesperson Sandrine Rousseau commenting: ” It’s a strong step for social justice as rents have climbed by 42% in the capital over the past 10 years “. The party is calling for the rent cap to be extended to all cities that face a ‘tight’ housing market.
The rent controls are the first major step taken by Francois Hollande to make good on his manifesto promises for national housing reform. The new law seeks to cap rent increases from one lease to the next in the country’s largest cities as part of the reforms, known in France by the acronym ALUR.
Rent Reforms Ultimately to be Applied Nationally
Opinion polls in France have shown that 75% of the public supported the price-capping measure with criticism coming unsurprisingly from estate agents and landlords Associations who have denounced the law, vowing to drag officials that wish to implement it into legal battles.
France’s National Federation of Real Estate Professionals (FNAIM) said the law constricted the housing market and would dissuade potential buyers from investing, suggesting it could file a suit with France’s Council of State. Estate agents in Lille have reportedly blocked efforts to apply the law in the northern French city by withholding housing and rent data from authorities.
Just two French cities apart from Paris are considering establishing rent controls – La Rochelle and Grenoble. ” Housing in France is 50% more expensive than in Germany. It is a burden on families and limits their purchasing owner, ” Grenoble Mayor Eric Piolle told France Inter radio this week.
In many respects rent controls can work well for property investors and are particularly helpful when negotiating a price, because rental incomes are cast in stone making it easier to nail your margins. With a legally established framework preventing unscrupulous landlords from cashing-in on Paris’ massive popularity, property prices may well slip back into the realms of affordability sometime soon.
Article by +Roxanne James on behalf of Propertyshowrooms.com
Maximise your FOREX advantage with Excel Currencies
Property investment in 2015 has a slightly different complexion to previous years, which is witnessed mostly at the high end. There is a new liquidity in real estate markets that reflect the considerable volatility seen in FOREX markets this year.
Buyers from Russia, are safekeeping their capital from a fallen rouble in Central London’s prime property markets. British buyers are looking to the Eurozone for improved value against sterling. The US Dollar investors are enjoying an international free rein with the greenback currently riding high as the world’s strongest currency.
Naturally, it follows that when making a real estate purchase in another currency, the exchange rate you achieve can have a significant effect on the property’s value and also its yield potential. For that reason, it’s always best for investors to align themselves with FOREX professionals when it comes to currency conversions towards a property purchase.
Excel Currencies are a world-leading provider of foreign exchange and have been offering preferential FX rates for all currency conversions (particularly to property investors) for many years. Excel’s clients range from individuals to large corporations and their FX rates remain some of the most competitive across the board.
Customer service is crucial when you are dealing with large sums of money in various currencies and Excel take it very seriously. Managing Director Karl Daly says; ” Excel Currencies strive to provide the best level of customer service and guaranteed unbeatable exchange rates. These coupled with our up-to-the-minute market analysis enables us to maximise our clients’ return for their money “.
Excel Currencies guarantee to give you a better exchange rate than your bank, passing on savings to you of around 5%, which on a transaction of £100,000 is a significant reduction of £5,000! Excel obtain the best FX rates because they use a panel of currency providers rather than relying on one source, as many other foreign exchange providers do.
No commissions or fees of any kind
They also charge no commissions or fees of any kind, which makes a big difference to how much you gain from a currency conversion. Excel makes its money from the spread (the difference between the rate they quote and the interbank rate) and so maximum savings are always passed on to you.
If you know you are completing on a property purchase in a different currency, you can fix the exchange rate for a future date with Excel. Their ‘forward contract’ product allows you to fix a rate today with a 10% deposit, for any date up to 2 years in the future. Perhaps you need to pay a deposit and settle the balance on completion in three months’ time? You can fix the rate for both transactions at the same time if the rate is to your advantage.
Buying a property in any currency can be complicated and expensive. That’s when you need someone inside FOREX markets to make sure you always get the very best FX rates. Excel Currencies have more than 35 years combined experience of specialising in foreign exchange. Plus, they consistently deliver unbeatable exchange rates for property buyers in all countries around the world.
When buying or selling currency with Excel, your funds are held in one of a number of pooled client trust bank accounts that fully comply with FCA regulations. You are secure in the knowledge that funds can be only used to fulfil your contractual obligations and not for any other purposes, which is a bonus.
 
Article by +Roxanne James on behalf of Propertyshowrooms.com
There’s more to Orlando than Disney World!
Orlando, Florida has been synonymous with Disney since first opening what was originally called the Magic Kingdom to universal acclaim in 1971. However, these days there is much more driving property investment in Orlando than Disney World and the year-round Florida sunshine.
Dublin-born Garrett Kenny, founder of local property consultants Feltrim Group said: ” Orlando is still one of the world’s prime destinations. It now attracts over 60 million visitors every year which represents huge recent growth. But the area is also fast- becoming a major hub for aerospace, life sciences, R&D, medical, digital tech and business services such as call centres. “
” What we’re seeing here reminds me very much of how Dublin positioned itself over the last number of years as an innovation hub. There is no state income tax and major international corporations are moving operations here. “
This is good news for the savvy property investor because a new demand-stream has emerged in Orlando that could possibly present better yield opportunities. Renting out a property on a long term basis to a professional working in the area is going to supply more consistent rental income than holiday rentals. Whilst it’s possible to charge more for short term lets, there are the void periods, changeover cleans and more ongoing maintenance requirements to consider that don’t apply to the same extent with longer tenancies.
Orlando has been a popular destination for British property investors for many years with buyer-interest set to increase on the back of the dynamism of the local economy. Currently outperforming most other US states in terms of economic growth, Orlando is very much in focus as an investment hotspot.
Projects including the I-Drive 360 retail and entertainment complex, a new hotel at Universal Orlando and the construction of a soccer stadium in downtown Orlando are currently in construction. International names like Deloitte, Verizon and Voxx International are stepping up local operations, and adding hundreds of higher-paid jobs to Orlando’s labour market, drastically reducing unemployment numbers in the Sunshine State.
The indications are that Orlando is a leader in Florida’s economic expansion in terms of percentage of total jobs being added. Sean Snaith, economist at University of Central Florida said: “The Orlando metro area is by our forecast the fastest-growing metro area in the state for jobs. That is fuelled by the I-4 projects (infrastructure), Wekiva Expressway, SunRail, robust population growth, new companies here and yes, the expansion of tourism again.”
It seems Orlando is on a steep growth trajectory making it a great time to be looking at investment property in the area.
 
Article by +Roxanne James on behalf of Propertyshowrooms.com
Beside the Seaside in the Heart of Paris
While researching for yesterday’s article about Dubai’s beaches scoring high on the Telegraph’s list of the world’s most popular beaches , I found out something I didn’t know! Nestled in the Telegraph listing was Paris, which to my certain knowledge has no coastline and so how can the city be home to some of the world’s most popular beaches?
Naturally, I had to ask Google for the answer to this question and I have to say, the answer is quite delightful!
Every summer, urban beaches called ‘ The Paris Plages ‘ appear across the banks of Parisian rivers and canals, captivating residents and tourists from around the world by the City’s transformation to one of the most sophisticated beach resorts in the world.
Vast amounts of sand are brought into the centre of Paris to create the artificial beaches and riverside streets are blocked off to traffic. Lounge chairs are lined up facing the water in a strange juxtaposition to some of Europe’s most iconic architecture and ice-cream vendors wander through the crowds as they relax on the impromptu seaside.
Watersports are big during the Paris Plages season which runs from the third week of July and through most of August, with kayaking, canoes and sailboats available with qualified instruction free of charge. There are beach volley ball games, pedalos, free concerts, plenty of bijoux eateries and everything else you would expect at a beach even though you’re at a fake seaside in Central Paris!
The Paris Plages have remained a completely unique phenomenon since the first beach opened in 2002, along the riverside near the Louvre Museum to the Pont de Sully that crosses the river over the Ile de Saint Louis. There is no swimming allowed in the rivers but there are swimming and plunge pools together with a concert stages hosting free evening performances, rock climbing walls and boardwalk style cafes.
It just sounds so good the idea of buying a pied à terre in one of Paris’ trendy arrondissements has regained pole position on my ‘places to buy if I win the lottery’ wishlist.
It didn’t take long for me to locate my dream property on propertyshowrooms.com! I found a bijou one-bedder on the 18th arrondissement that fits the bill completely. If you’re buying in sterling you can currently snap this property up for just £380,000 and even though the apartment is just 55m², it is located in one of the typically gorgeous Parisian residential blocks, nestled among the vibrant City’s streets in an area consistently sought-after by property investors.
Imagine awaking to this scene from your pad on the 18th arrondissement, Paris
According to Airbnb, an apartment of this size on the 18th arrondissement would command a holiday rental of up to £150 per night through The Paris Plages season in summer. That’s not a bad return on your investment considering you can still easily achieve up to £100 per night during the winter months.
Paris is a one-off city. Completely unique, it never fails to surprise in the most delightful way and that’s why it remains the world’s most popular destination to visit year after year. If you can find an affordable entry point into Parisian real estate, you are guaranteed to be on to a winner.
 
Article by +Roxanne James on behalf of Propertyshowrooms.com
Dubai’s Public Beaches among Best in World
Dubai’s government has been pouring capital into its tourist sector ahead of hosting World Expo 2020, spending almost €50m to develop the Emirate’s public beaches as part of its investment drive.
As an endorsement of Dubai’s success, The Telegraph recently listed the Emirate’s public beaches among the most popular in the world along with beaches in Paris, Sydney, Shanghai, Rio de Janeiro, Barcelona, Athens, Los Angeles and Cape Town.
Dubai ‘s public beaches are considered one of the most important landmarks in the Emirate and are visited by hundreds of thousands of residents and tourists throughout the year. Beaches from Al Mamzar Creek to Dubai Marina have been improved to provide first-class facilities, services and free internet access, scoring them high among the international beach resorts covered by the survey.
Alia Abdul Rahim Al Harmoudi, director of the environmental department of Dubai Municipality said: ” The effort and interest in improving the services in all the beaches has helped in the nomination of Dubai for the global accreditation “.
She added that the municipality is also working on strengthening the safety and rescue services in all the open beaches in the emirate and improving the quality of the coastal environment by launching educational campaigns on how to protect the environment and how to stay safe when visiting the Emirate’s beaches.
A good tourist infrastructure is vital when considering a property investment in a resort area and a strong government commitment to expand tourism further is a great growth opportunity.
Dubai’s hotel and hospitality sector has enjoyed significant growth since 2014, with many more large-scale luxury hotel projects in the pipeline over the next five years. Consequently, investment in Dubai hotel rooms is currently booming with the supply/demand dynamic spitting out high value opportunities for savvy buyers.
Britons are the third top investors in Dubai real estate, beaten only by Indians and Pakistanis. Statistics from the Dubai Land Department show there are around 19,000 Britons who have invested in the Emirate’s property so far, spending more than £1.6bn during 2014 alone.
Dubai’s tax-free status is one of the biggest attractions for property investors, with zero taxation on rental income and capital gains. Additionally, foreigners have been allowed to buy property with freehold rights since 2002 and mega-events such as 2020’s World Expo is enhancing the Emirate’s appeal to property investors even further.
 
Article by +Roxanne James on behalf of Propertyshowrooms.com
Business Partners
