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Dear Readers, First and foremost, a very happy new year to all. In this first newsletter of 2008, our main subject is the SCI - Société Civile Immobilière - a flexible means of sharing and transfering ownership of property between family members or more broadly beyond the family circle. JPF is present in January's edition of French Property News with an article on newly renovated properties in the Languedoc. The article can also be consulted on the JPF website by clicking here. Top properties include a village house with sun terrace, a restoration project and two villas with swimming pools. Should you wish to be removed from this mailing list, please use the link provided at the bottom of the page. Otherwise, kindly read on. Themes of the Fortnight: the SCI (Société Civile Immobilière) The SCI (which translates roughly to 'civil property company') has become a popular means in France to share ownership of property within or beyond a family circle or in professional environments. There are of the order of 700,000 set up in France and in Paris alone, 28% of all apartments are owned by SCIs. The objective behind forming an SCI is that of acquisition, construction or management of one or several properties in order to rent or put them at the disposal freely of one of the partners or to rent to a third party. In practise, the SCI is often considered an ideal solution by unmarried couples and / or parents for the donation of assets, as savings can be made in inheritence tax. The SCI is very different from normal property ownership in that it consists in forming a business for the management of property. This implies a certain level of complexity, even if the overall aims are very simple, and that a strict set of rules need to be respected. The notary, accountant and financial advisor are fundamental sources of advice. The SCI can be formed on the basis that the asset has been already acquired by one or several of the future partners, or that finance is available in existing assets or by way of a loan. On creating the SCI, the partners obtain 'shares' proportional to their participation. An SCI can sell a property but not in order to acquire another as its statute is not commercial - as such neither is it able to rent out the property furnished. Main reasons for creating an SCI: 1. The SCI is often used to avoid the restrictions of the traditional routes of sharing ownership under the French rule of 'indivision'. In particular, ownership of property by two people in this way can cause problems during separation on death or divorce. In the latter case, either party can make a court request that the property be sold, not the case when using an SCI, as each partner instead holds 'shares', easier to handle and transact. In addition, in indivision, if one of the parties dies, the surviving spouse can be evicted by the inheritors of the deceased - again not the case with an SCI. 2. Donating - the SCI can be useful in handing ownership from parents to children or simply associating children in the purchase of property. The donation of property can be progressive and any cost of inheritance be spread over time. It is less costly donating shares in an SCI than by using traditional methods. In particular, any debts or loans owed are deducted from the value of the property donated. For this reason, it can be particularly beneficial to take out a loan for the purchase of a property to be donated. Every ten years, parents can donate 92,000 € to each of their child, without being subject to inheritance tax. Also the donor is able, with very little capital within the company, to keep overall control over how the property is managed. 3. Mortgages are granted to SCIs at lower interest rates usually reserved for companies. In addition, levels of indebtedness of individual partners are not considered by the lending organisations. Further, the more the partners the greater the capital will be made available. Conclusion The SCI is applicable to certain situations and can be very beneficial, but it comes with various formalities - a bank account, certified accounting and the publishing of annual results. It is thus essential to enter such a project with a clear idea of the steps along the way and projected final outcome. Advice can be sought from financial specialists and accountants, however a notary will provide initial information and pointers. OTHER NEWS: Art exhibition in Lunel Two different cultures currently share the gallery space at Espace Louis-Feuillade/Abric in Lunel till January 27th this year. Marie-Claire Esposito, from southern France is a painter and sculptor besides running art therapy workshops. She exhibits her sculpture from bronze, ceramic and stone. Alexandre Antadze, a painter, is originally from Tbilissi in Georgia, but has worked in Moscow. The exhibition runs to January 27th 2008. Espace Louis-Feuillade/Abric, 48 boulevard Lafayette, Lunel - tel.: 0467878419  An end to smoking in public places The curtain has finally fallen on smoking in public places across France. In the final phase of wide sweeping legislation - for which the previous major step came in 2006 - smoking in restaurants, bars, discos, casinos and other closed public places is now forbidden. Minor exceptions are made where adequate facilities are installed and of course in establishments with open air seating. Police and healthy and safety inspectors will be fining owners and patrons who - in keeping with the French habit to resist change - disobey. Cafe 203 in Lyon received the first fine last Friday. Top Properties: near Anduze (Gard) Very appealing and characterful village house with sun terrace in a small village near Anduze. A forty minute drive from Montpellier and Nimes, this three bedroom house offers a habitable area of 103m² over the two upper floors. ... Further details can be found here. Property ref. 557. Asking price: 233,000€  St. Privat des Vieux (Gard) Recently built villa benefiting from reduced rate notary fees. The property offers an interior surface area of 137m² and stands in grounds of 1180m² with a swimming pool. On the ground floor are a living and dining room (43m²), fitted kitchen, two bedrooms and a shower room. ... Further details can be found here. Property ref. 556. Asking price: 349,800€  Ledignan (Gard) Spacious detached stone comprising eight main rooms over two floors and a large attic, and offering a exploitable surface area of 300m². Requiring a full renovation, it represents an ideal project in order to start from scratch with what is a characterful dwelling. The property stands in a quarter acre of grounds, though a further three quarters of an acre can also be purchased. There is a garage and small workshop. Given its setting on high ground within the hamlet, it has extensive views toward the Cevennes. Property ref. 558. Asking price: 285,000€  Saint Bauzille-de-Montmel (Herault) Well appointed four bedroom villa with a mature garden in a desirable setting twenty minutes from central Montpellier. The property has a surface area of 190m² and stands in 1800m² (a little under a half acre) of grounds with rich flora (palm, olive and pine trees). The interior comprises a vast living room (approx. 61m²), a fitted kitchen (12m²), four bedrooms (29, 12, 12 and 12m²), two bathrooms and complimentary interior spaces. Terraces ensure the transition from in- to outdoors where there is a swimming pool, wood chalet and double garage. The house has a southerly orientation. Property ref. 559. Asking price: 650,000€   +33 467 297 068 +33 626 581 415 Contact: http://www.jamespropertiesfrance.com/message.php For all other information: http://www.jamespropertiesfrance.com About James Properties France: Based in Montpellier in the south of France, bringing to you a carefully picked selection of properties within a 70 mile radius - with the occasional more distant exception - that are chosen for their combinations of attributes, most notably: - Setting of outstanding natural beauty - Distinct character or unusual features - Quality of renovation or authenticity - Value for money James Properties France (JPF) serves primarily an English speaking, though often highly Francophile clientele looking to move or own a second home in the south of France around such places as Uzes, Nîmes, Montpellier, Anduze, St. Hippolyte du Fort, the Southern Cevennes, Gignac and Clermont l'Herault and the Hauts Cantons. The property selection proposed by JPF is targeted to fit buyers from abroad in terms of types of location, accessibility, environment / landscapes, and types and formats of construction. Besides bringing you a wide array of properties, JPF helps by running specific searches in the Gard and Hérault. JPF acts as an intermediary between you and a number of regional estate agencies, at no extra charge. Selections of properties that meet your criteria can be established prior to your visits, any linguistic issues totally alleviated, questions about French procedures and legislation addressed quickly, and information on prices and property details addressed plainly by all parties. JPF also presents a wide selection of off plan properties throughout France. If you are thinking about a leaseback operation, traditional buy-to-let or an apartment or villa for personal usage, JPF can help. Regions where JPF is particularly present include Paris / Ile de France, Languedoc Roussillon, Provence Alpes Cote d'Azur, Aquitaine and Brittany. Please browse options on the Off Plan Property Page. JPF helps you with your purchase from the beginning to the end of the process, often communicating with the assigned notary to make sure that content and conditions of sale are correctly documented, ensuring all is in order for completion, and keeping you informed of progress. Insurance and utilities can also be arranged. Should you wish to have assistance in maintaining or making alterations to your house, or any formalities associated with property ownership or financing in France, JPF can give assistance on an hourly basis. Finally, if you are looking to sell your property in the south of France, JPF can also help. If you would like to unsubscribe from this newsletter, please click on the following link: http://www.jamespropertiesfrance.com/newsletter.php |