Euro: Strong against US $ and linked currencies. The average cost of living is generally lower than other EU Countries especially in country districts. Paris is however is very expensive.

Economic climate: There are no limitations on foreign property investment although purchasing regulations vary by type of property. French real estate increased by 30% in the 2001/2002 fiscal year.

Capital Gains tax: CGT rates on property sales are 16 per cent for European and 33 per cent for non-European residents. You are only CGT exempt if French tax returns prove that the property is your ´principal residence´. Otherwise, the applicable CGT amount officially reduces after 5 years by 10 per cent for each subsequent year of ownership up to 15 years after which the property automatically becomes CGT exempt.

Popular investment areas: Due to its size the options in France are diverse. The Dordogne, Charente Maritime, Brittany, and Cote D’Azur as well as cities like Lyons and Paris are all well subscribed.

Price ranges: Low budget property is costly to refurbish and may often be found in rural areas but also in ancient parts of towns and villages. The choice of location reflects future pricing and should be carefully considered. The universal appeal of The South of France, thanks to its climate and unique character, generally commands higher prices than other regions, apart from Paris.

Budgetary guide: New villas: E’s250,000 +, New apartments: E’s100,000 +, Town Houses: E’s 95.000 +, Detached houses: E’s115,000 to 150, 000, Farm Houses: E’s150,000 to 220,000, Character Houses with land: E’s300,000+ Renovations: E’s 25,000 to 35,000,,

Service Fees: Agents often present their properties with the commission included in the asking price, in which case legal fees are the only addition. These start on very cheap properties at around 10% and decrease to around 6.5% for properties of 200, 000 euros upwards to approximately 6.2% on very expensive properties. These legal charges include taxations and re-registration of deeds, apart from the notaires fees, hence reduced rates for new builds. It is worth “shopping around” among reputable notaires who will provide quotes on the total legal charges

Mortgages: Standard term 15 years. Mortgage requirement must be indicated at the same time as the initial agreement. French banks will provide up 80 per cent funding.