BUYER’S GUIDE BUY WITH US • RENT WITH US • SELL WITH US
Nice Pebbles are the Riviera’s leading holiday rental agency with over 180 prime properties from Antibes to Cap Ferrat. Each designer apartment boasts WiFi, L’Occitane toiletries & a welcome basket with wine, and is bookable in a few clicks. The Times, November 2014
A short-term rental in one of these fabulous holiday apartments allows you time to truly immerse yourself in local life. Demand is high so book well in advance. Frommers Provence & The Riviera 2015 edition
Welcome to Pebbles We care about answering all your French Riviera real estate questions before you arrive. That way you can spend all your time looking at beautiful properties in the sunshine without worrying about inheritance tax or French mortgages. The three most commonly questions we get asked are:
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Can I find a trustworthy agency?
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Can I rent my property? and…
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How much does it all cost?
We can answer those three questions right away. Firstly, since 2006 our fully licensed company has sold close to 100 apartments and villas. We have a real sales office with multilingual staff in the centre of Nice. Secondly, our Pebbles rentals portfolio is Nice’s largest holiday letting agency with over 180 properties under management, so this is a market we know intimately. And thirdly, we don’t charge you a penny for our service. Agency fees are paid by the vendor in France – there are no other hidden costs. To make this document as succinctly informative as possible, we’ve condensed a decade of French real estate experience into 25 pages. We’ve also made it as interesting as we possibly can – no mean feat when we’re explaining rental yield (on page 6) and capital gains tax (on page 13). Please bear with us as we feel our investment case studies (on pages 8, 14 and 22) and our 2015 Nice property investment guide (on page 20) are well worth reading. After conveying all we know about buying on the French Riviera we start the fun bit of finding a selection of fabulous properties for you to view. Book a flight to Nice and we’ll show you around. Best wishes,
Matt & Gayle Roberts & the Pebbles team
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The 10 most common questions we get asked by our clients on arrival
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Can I get someone to pay for my new property by renting it out?
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How difficult will a renovation be?
Most of our buyers defray the cost of purchase, or in some cases turn a tidy profit, by renting their new property. As we also own the Riviera’s largest and most established holiday letting agency, Pebbles Rentals, we know this market inside out. Tips, taxation issues and details of Nice’s long letting calendar are covered on page 6, Renting my apartment.
We have a list of thirty honest and competitively priced plumbers, plasterers, decorators, deliverymen and interior designers. Some are French, some are British, while others are Polish or Romanian. Furthermore, our contacts in the building trade wouldn’t put themselves at risk by letting down clients of Nice Pebbles.
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Do I have to keep visiting France to sign bits of paper?
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Do you transfer all the bills into my name?
No, but it can be fun. The Notaires we use (see page 4, What does a Notaire do?) prepare all documents for signature then email them to you. All they need from you is a passport scan. You may even arrange procuration, or Power of Attorney, for the final act of sale, the Acte de Vente. But it’s a pleasure to arrive in person, sign on the dotted line, then crack a bottle of Bollinger afterwards.
Yes, we do all that. We speak French – and indeed Italian, Spanish, Portuguese and Russian – and call the gas, water and electric companies for you. All you need is a simple French bank account, which we’ll point you in the right direction for.
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If I die will the French government have any claim on my estate?
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Will I be stung by French property taxes?
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Will I be stung on bank transfer fees?
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Will the property price be higher for non-natives?
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If I see a property on another website, can I visit it?
No. The French state has very clear property succession issues whereby the holdings of the deceased are shared amongst their family. This is covered on page 12, Death & Taxes.
Again no. There are only two French yearly property taxes: taxe foncière and taxe d’habitation. That’s it. There’s nothing else to pay.
After following the experiences of our 200-plus clients, we recommend a currency transfer specialist like Currencies Direct. They guarantee to beat the exchange rates offered by regular banks, let you follow your transfer online and can deliver the funds within 24 hours.
Nice is as cosmopolitan as you can get! Foreigners have been purchasing on the French Riviera for over a century. Our 10 years in the business tells us that vendors are as likely to be Parisian, British or Swedish as they are local. Finally, the thought that Nice Pebbles Sales clients would purchase a property that seems glaringly overpriced compared with the ten others we have shown them does not make sense.
Most buyers defray the cost of purchase or turn a tidy profit
Yes, certainly. In France, like the United States, all properties are multipally listed. This means that we can include any apartment or villa on anyone else’s website in our property tour with you. If you buy that property then the sales commission is shared between the two estate agencies – it does not affect your purchase price. This important topic is detailed on page 18, Pre-Arrival Points for Success.
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What single tip would you offer to a first-time buyer in France?
Research a mortgage before you arrive (as detailed on page 19, Serious Money). It sounds obvious, but our experience shows that knowing exactly how much you can borrow from which bank will give you far more bargaining power when making an offer on a property.
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What does …a Notaire do? They wear Armani and use a Mont Blanc pen. But aside from that, a Notaire acts as a government-appointed notary or solicitor. They handle every legal aspect of your sale from conveyancing to drawing up sales documents. As they are representatives of the French state, their fees are fixed at around 7.2% of the purchase price (or around 8% if you’re taking a mortgage). This is the only additional cost to be borne in mind when purchasing a property with Nice Pebbles Sales & Investments. For the record, these fees don’t keep them in Armani. Most of these monies are paid to the French government as a transaction tax, similar to stamp duty in the UK.
What to bring to the Notaire’s office Passport or copies Marriage certificate Birth certificate Prenuptial agreement or civil partnership Cheque book or RIB A favourite pen
At Nice Pebbles Sales we work with the efficient Notaires who are fully conversant with email and English-speaking clients. For the final Acte de Vente they will also book an English-speaking translator, which you must hire by law in order to understand every facet of the document you’re signing. Although this document answers most tax, inheritance and transaction issues on page 10, Death and taxes, our Notaires will happily run over any questions you have before purchasing for free. Email us and we’ll put you in touch with our local Notaire office on avenue Notre-Dame. It’s around the corner from our sales office. Finally, two key points. Firstly, Notaires’ fees are only paid by the purchaser. You don’t have to pay them again when you sell your apartment or villa. Secondly, all of our estate agent fees are paid by the vendor. We don’t charge you a single penny, cent or centime for our services. Some unlicensed ‘property finders’ may add on their ‘sales commission’, but it would simply be illegal for a registered French estate agent like us to do so.
Pebbles guided me through the purchasing procedure and were responsive to my questions and needs. They have a good network of resources to help with all areas of buying a flat in France. Ali Moshref, February 2014
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…a French Bank Manager do? They wear Versace and use a Casio calculator But aside from that, a French bank will always appoint a friendly bank manager to manage your account. The banks’ services range from setting up current accounts, savings accounts, long-term investments, loans and mortgages. In a lot of cases, websites can be in English and internet banking is also in English along with a 24 hour call centre in English to deal with out of office enquiries. Check on the services before you decide where you want to set up your account. Setting up an account in France is easy, even if you are non-resident. If you are funding the purchase with a mortgage, you will need a bank account. Money will need to be transferred to that account to pay the monthly repayments. You can use a a currency broker like Currencies Direct to send money periodically when exchange rates work in your favour. All banks offer current accounts, compte courant, which are for everyday banking. This is all you will need to just pay utility bills and standard expenses. Current accounts are free to set up. You will be charged for a debit card, carte bleue. Most banks will expect you to maintain a minimum deposit. There’s also likely to be a limit on the amount you may be able to transfer each month.
What to take to open an account Passport Utility bill Proof of earnings (payslips, tax return) Bank statements from resident bank
We got a friendly, professional service from start to finish and beyond. Nothing was ever too much trouble and no request or question was ever too trivial. If you’re thinking of buying on the Riviera, save yourself a load of time and trouble and let Nice Pebbles look after you! Jason Hynes & Stuart Feggans, December 2014
Be wary and understand the terms before upgrading your basic bank account. You may be just adding charges for something you don’t need. Before you throw away the chequebook automatically provided with your account – don’t. Cheques are still a popular form of payment in France, and sometimes a lifesaver. Many restaurants still don’t take card, but most will take a cheque. You will also be charged for your carte bleue, and charged extra for an additional card. If you’ve made up your mind that you want a French bank account, then we’d suggest setting one up as soon as you are serious about buying a property. If you already have a bank account, the process is easier and your bargaining power better. You also feel a little more like you belong when you mutter “Vous acceptez Carte Bleue?” in the locale. 5
Renting your new property Can I defray the cost of my property by renting it out? At Nice Pebbles Sales we have heard that question from hundreds of clients over the past ten years. The answer is yes. We offer something that no other French Riviera agency can match. Our sister company is Pebbles Rentals, the largest and most established holiday letting company on the Cote d’Azur. When viewing apartments or villas with you, we can advise on which property would rent, for approximately what amount, and for how many weeks per year. Around 70% of Nice Pebbles Sales clients choose to rent their apartment or villa with Pebbles Rentals. The rest either keep the property for themselves or let it casually to family and friends.
Regularly feature in The Times and Lonely Planet
Pebbles Rentals take potential new apartments very seriously. The reason they regularly feature in The Times and Lonely Planet is that they are all luxuriously appointed. Their expert management service honed over ten years and 15,000 rental clients wins them valuable feedback on Tripadvisor. Take a look on their rentals website to see the product for yourself. When taking on Nice Pebbles Sales apartments or villas, Pebbles Rentals ‘stage’ any new property with fresh flowers, bottles of rosé and much else besides. Then they hire a top photographer, make the floorplan, describe your property and upload it to their ever-popular website. For Nice Pebbles Sales clients this service is completely free. (For non-sales clients they charge £1,000 for this unique provision). Owners may then follow their property’s rental progress via an online console and watch the money come in. Pebbles pay owners directly at the end of every month. Their 24/7 management service, L’Occitane bath products and luxury welcome packs are paid for by Pebbles Rentals’ guests, above and beyond any rental fee.
British-owned and run company that offers boutique-style apartment as an alternative to a hotel room on the Côte d’Azur. The Telegraph, February 2013
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Planning to buy or rent? You need our INVESTOR ADVANTAGE to set you on your way:
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FREE PROFESSIONAL PHOTOS Essential to promote your property to its full potential.
FREE STAGING To maintain the standard of presentation our guests expect.
FREE FLOOR PLAN Expected and useful for guests, showing we care about finding them the right property for their holiday.
Nice Pebbles After-sales service has been most helpful in ensuring that we are set up to deal with all the necessary bureaucracy and administration that comes with home ownership in France. We would not hesitate to recommend Nice Pebbles and Ioana for anyone considering a property purchase in Nice and the Riviera. Jane and Mark, London. Proud owners of Clemenceau, January 2015
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FREE PROPERTY UPLOAD Good quality writing takes time and helps guests know they are in good hands.
JUMP THE QUEUE Pebbles has a list of properties waiting to join their rental portfolio. Our property buyers are not only guaranteed to be able to join the portfolio, they also go to the top of the list.
For more information on the Investor Advantage, go to the Investor section at nicepebblessales.com
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Serenity Case Study Richard & Sarah Neiland from London, UK Three bedroom property purchased on rue Cronstadt, Nice, in April 2014. ‘Serenity’ is now successfully let with Pebbles Rentals from £140-£250 per night, or £980 to £1,750 per week.
Why did you choose to buy an apartment in Nice? We decided to buy a holiday home somewhere along the Riviera that was a reliable, long-term investment. With the vagaries of the global economy to contend with, investing in a property in a popular location seemed sensible. We know that sun, good food, wine and beautiful surroundings make us very happy and making Nice our European base was an irresistible choice. Nice meets all of our needs for having fun and enjoying French life. It’s easy for friends and family to visit as the transport links are second to none. It was clear to us that Nice is investing in its infrastructure, parks and attractions, but hasn’t become overdeveloped, unlike some other parts of the Riviera. After careful consideration we chose the Carré d’Or neighbourhood as it’s a prime residential area and very popular with tourists. ‘Serenity’, as we decided to call our apartment, was newly refurbished. With its white walls it was a blank canvas ready to go. It has high ceilings, loads of light and was in a well-maintained building. It’s so quiet, yet we are in the heart of the city – you can see the top of the famous Negresco Hotel from our window. It ticked all our boxes and we fell in love with it straight away.
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What has been the biggest surprise about owning property on the French Riviera? The biggest surprise has been how easy the sale has been. You need to be patient for all the paperwork and allow time for processing things the French way. But generally it’s straightforward and logical. Having Nice Pebbles Sales and their recommended English speaking Notaire to guide you through and explain everything avoided misunderstandings and pitfalls. The French process of house buying makes sense eventually. And it’s clear that the rules and process are actually there to protect the buyer, whatever country they come from. Once we had Serenity set up and looking beautiful, Pebbles Rentals did all the management and prep needed on their side really well. Within a few days of our leaving the first guests booked by Pebbles Rentals had already arrived!
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The Specials of 2014 At Pebbles we sold dozens of properties throughout 2014, and here’s some of the special ones that left us dreamy for one reason or another. We’re looking forward to creating our new list for 2015. Hopefully you will be in it. RUE BERLIOZ 94 m2, three bedroom. Sold 463,000 euros January 2014. For just under 5,000 euros a square metre on one of Nice’s most prestigious streets this was a great buy. Our happy clients fell in love with this well maintained art deco building, with French windows leading from the living area to the balcony. What’s more it had been entirely renovated with high quality fixtures offering the interior designer commissioned a great canvas to work with. The new British owners preferred to keep this for themselves for the moment, but we live in hope that one day it will make it onto our rental portfolio.
Dear Maria, it was so lovely speaking with you last night. I can’t tell you how much I appreciate your professionalism and honesty when discussing potential properties with you. This is one of the many reasons why you are clearly no. 1 in Nice! Dr Vivienne Finnegan, Australia, xx 2014
RUE CRONSTADT 110m2, three bedrooms. Sold 690,000 euros in March 2014 In March 2014 we found our clients Sarah and Richard, this prestige property. Originally on the market for 750,000 euros, we did some tough negotiating for our clients, making offers on both Cronstadt and an apartment on rue Rivoli at the same time. It really can pay to be an investment buyer who is buying with head and not heart. Holding their nerve, our clients managed to secure a deal for 690,000 euros, which in the Carré d’Or, with a balcony to boot, was a steal. Now on our rental portfolio as Serenity, this apartment has done extremely well as an investment property. Half the credit goes to finding the right investment property, and half to Sarah and Richard who did the interior design themselves, and pulled off an amazing finish. Upon launch on our website, it secured eight bookings in the first two weeks. 10
RUE DE RIVOLI 105 m2, three bedrooms. Sold 650,000 euros in March 2014. Remember that apartment on rue Rivoli that lost out to Cronstadt? Sarah and Richard did our next client a favour and got the seller in the mood for a negotiation. When our next client fell in love with this amazing apartment, offered for sale for 695,000, we managed to obtain an agreed sale price of 650,000 euros. Three bedrooms, lift, spacious living/dining area, and lots of light made this apartment simply exquisitely bourgeois. After the interior designer did her magic, Rivoli is offered on our rental site and has had a steady and healthy flow of bookings and happy guests. All making for a happy Owner. RUE CAFFARELLI 35 m2, one bedroom. Sold 210,000 euros June 2014. This little house will always have a place in our hearts. At a modest 35 m2, with an asking price of 210,000 euros, we sold this little house in a few weeks – no negotiation. The new owner was as seduced as we were. Who couldn’t be when it was a private residence that was bright, airy and tranquil and with not one, but two south facing terraces. All the owner needed to do was sprinkle it with some care and flair, and he did. Maison Caffarelli on our rental site since September 2014 is already a hit with guests. With its proximity to the beach, and sun drenched terraces, it will produce a high yield. No question. QUAI DES DEUX EMMANUELS 100m2, three bedrooms. Sold 740,000 euros August 2014. It was a sad day when we said goodbye to our Portofino apartment, a longstanding and popular rental apartment with us. The Owners now retiring, with our help they sold this to a local family who took up residence. They now get to wake up to spectacular views to the Port from the living area and front bedroom, as well as enjoy the view from the kitchen. With three decent size bedrooms, two shower rooms, two balconies and oodles of space – oh, and a lift – this was certainly one that got away. AVENUE GEORGES CLEMENCEAU 70 m2, two bedroom. Sold 400,000 October 2014. We’ve only room for one more – this was tough. Ok, the final special property of 2014 goes to this splendid example of what can be bought for the right price. With its high ceilings, original parquet floors and fireplaces, this apartment is due to be offered on our rental portfolio for 2015, we’re sure this is going to be a very successful rental investment.
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Death & Taxes At Nice Pebbles Sales we have helped hundreds of clients of all circumstances buy, sell or rent their apartment or villa. We have answered every tricky question from solicitors’ fees to inheritance tax, and will keep doing so for another decade.
Local taxes As mentioned there are two French yearly property taxes. These can be paid online, by post or via Direct Debit. There are no hidden surprises, but here’s a little more detail about each.
…there are two French yearly property taxes
Taxe Foncière is the local property Ownership Tax. It’s a tax imposed on the owner, and the owner has to pay it regardless of whether you occupy the property or not. The prize for this tax bill goes to the owner who owns the property on the 1st January: Happy New Year! Of course, local services aren’t free and this is what this tax is for. Each property is assessed individually for the amount to pay, and it is based on the approximate rent the property might achieve in the open market, i.e. the location, its size and condition. We will always provide you with the amount of this tax on the last tax demand. The tax demand is called the avis d’imposition tax foncière. We can’t give you a guide or average we’re afraid. The amount payable each year between different properties is too varied, but if it helps, there are no properties – even the spectacular ones – currently on our rental books that has a demand for over 2,000 euros annually. It’s common for a property in the Old Town to receive a bill for less than 500 euros. New development buildings are exempt for two years. Discounts are given for properties complying with new energy saving regulations for up to five years. Taxe d’Habitation is an annual residence tax, which differs from taxe foncière in that the occupier pays it, be it renter or owner. Sadly for many of our clients though, this is still usually payable if you do holiday lets. You can apply for exemption, but you will then be liable for business rates. Most clients choose to just pay the tax. It is usually just slightly higher than the taxe foncière. Again, we’ll try our best to let you know the amount on the last taxe d’habitation demand. This demand also covers the TV licence which is included in the calculation.
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Capital gains tax
Wills, probates and inheritance tax
Capital gains tax (CGT) is the tax payable on any profit you have made on a property when you sell. So if you purchased a property for €300,000 then sell it for €400,000, you may have to pay tax only on the €100,000 profit you have made.
Notaires deal (slowly and methodically) with the loss of a close relative. Unless a French will has been drawn up that states otherwise, then the deceased share of the property is currently divided equally between his or her direct beneficiaries (spouse and children). It is illegal in France to disinherit your children so they will receive a proportional share of your estate on death.
Then there are allowances such as taper relief. The basic principles of CGT remained the same in the 2015 budget. It’s a complicated system to navigate so we only give you the main points as a guide here, but please read our sales blog for more in depth information. Importantly, all CGT tax and social charges that you pay are reduced on a sliding scale depending on the number of years you have owned the property. The rate of CGT payable for EU/EEA residents is currently 19% and 33.3% for non EEA residents; at the moment both groups also pay 15.5% social charges on the gain too, though this is being disputed for non French residents and will probably be removed. The sliding scale of taper relief means that the property is free of capital gains tax after 22 years and free of social charges after 30 years. This applies up to a gain of 50,000 euros, above which you pay a little more, depending on the size of gain; it could be a further 2% to 6%. See our website blog for more details. There are other deductions that can be made to further decrease any CGT. If you have owned the property for five years the Notaire will offer an allowance of 15% of the original purchase price as an ‘assumed eligible cost’. Secondly, there is a list of ‘real eligible costs’ for major value adding renovation works like new kitchens and extensions that can also be taken off your taxable profit. So keep all the invoices, builders’ receipts and other bits of paper you accumulate.
If you are a French resident then as of August 2016 you can elect to use your ‘home’ nations laws and thereby a Brit could leave the entire property to a spouse (as in UK law). This doesn’t apply to UK residents owning property in France. Common amendments requested of Notaires as they draw up the original sales document include a Tontine, or ‘joint tenancy’ clause. This allows for the remaining spouse to become the “lifeuser”, (usufruit).
…keep all the invoices, builders’ receipts and other bits of paper you accumulate Without this then strict Napoleonic law will mean the asset you leave on death will be divided equally between a surviving spouse and any children. If a spouse inherits any part the property there is no inheritance tax to pay on that part of the property in France. Children who inherit may pay inheritance tax on a sliding scale with a tax free allowance of €100,000 per child. For more in-depth questions on CGT and wills, including questions over inheritance issues concerning children from a second marriage, you should speak to a financial adviser such as Peter Brooke, or a lawyer and then we can ask the Notaire to carry out your instructions prior to the final signature.
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Agatha Case Study David & Anna Grunfeld from Dubai, UAE Two bedroom property purchased on rue Droite, Nice, in February 2014. ‘Agatha’ is now successfully let with Pebbles Rentals from £80-£140 per night, or £560 to £980 per week.
Why did you choose to buy an apartment in Nice?
The apartment is an investment, but we plan on enjoying it too!
Years ago, as students, my wife and I fell in love with Nice… and then we fell in love with each other. Though we’ve moved around a lot since then, Nice has always held a special place in our hearts. We now live in Dubai, which is amazing but also frenetic and lacking in authenticity, so we tend to seek a more relaxed pace and cultural stimulation for our holidays – both for our children’s education and our own sanity. We spent a week in Nice a couple of years ago and fell for the place all over again. We were staying in a Nice Pebbles apartment and enjoyed the experience so much that we started to consider buying a property in Nice. The apartment is an investment but we plan on enjoying it too. Located in Nice’s Old Town, our apartment’s position is perfect – only a few minutes’ walk from the Promenade des Anglais, the Colline du Château (Castle Hill), the Cours Saleya, and all the amazing markets, restaurants and boutiques around the historic Old Town, the commercial centre, and the trendy Port area. And Vieux Nice has no traffic, so it’s safe and quiet… but trams, buses and taxis are only a block away.
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What has been the biggest surprise about owning property on the French Riviera? We’ve only owned the property for a few months, but so far the biggest surprise is how excited friends and family members are about it. These days, with social media, you don’t even have to tell many people about it; everybody seems to find out soon enough… and ask when they can go and stay there to enjoy the apartment and the wonders of the Riviera!
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Buying a Property in Nice RESEARCH Familiarise yourself with the local property market. Our Nice Pebbles Sales website property pages are updated almost daily with new apartments and villas currently for sale across Nice. Reading our area guides about
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CONTACT US If you email, call or drop by in person we can discuss your exact needs. We find that personal contact really helps and our sales team are ready to answer your queries about any aspect of buying a property in Nice.
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Massena, Old Town, Port, Musiciens, Mont Boron, Carre d’Or as well as others will help you find the best area for your needs – then clicking through to see the properties we have for sale in each zone, will give you an excellent idea of what’s on offer and at what price.
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FINANCING If you’re considering financing your purchase with a mortgage, you should take the first step and speak to one of our recommended English speaking Finance professionals. Contact one of our independent mortgage advisors. Learning what you can borrow now will make your property search much clearer when you tour around our properties for sale in Nice.
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COME AND SEE US! As well as the beautiful apartments and villas currently listed on our website, we are also members of Emulis, so we have access to over 80% of the properties currently for sale in Nice. That’s right, if you see a property for sale on another agency’s website then tell us
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and we will arrange a viewing with them on your behalf. We routinely show around six perfect properties to our clients in a day’s viewing. We can also answer any further questions about renovation and rental returns, as well as sharing the experiences of our clients who have purchased similar properties in Nice.
SEND THE DEPOSIT If you’re just as delighted with your purchase after your seven-day reflection period, it’s time to deposit a sum, normally 10% of the purchase price, into the Notaire’s escrow account. These accounts are government controlled and the money is transferred to the vendor only on completion of the purchase. You may send a deposit from your local bank abroad, using a money transfer service like Currencies Direct or via online
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APPLYING FOR CREDIT? If you are not financing your purchase with a mortgage, then skip to point 10. If you are, then it’s time to send back your mortgage approval documents to the Notaire.
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ACTE DE VENTE OR ACTE AUTHENTIQUE The Notaire will now draw up the deeds of sale and arrange a date for you to sign for your new property. You may do this from a distance by giving the Notaire power of attorney to sign on your behalf but it is far more fun to do it in person! If French is not your first language, you will need a translator present at the final signing with you. You will be given the keys on signing day. We can then assist with renting your new property, finding a local builder or simply wish you all the best with your new place in Nice.
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MAKING AN OFFER If you see the right property, it’s time to make a non-binding offer to the vendor. We will discuss the offer to make and then make the offer on your behalf. It’s illegal to sell a property for over the asking price in France so negotiating for a better deal is often on the cards.
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banking if you have that facility. If the vendor backs out of the purchase now, they will have to refund your deposit, plus an additional sum equal to the value of the deposit. In addition, if you fail to obtain your mortgage then the clause suspensive (suspensive clause) on your Compromis de Vente comes into play: your deposit will be returned to you if you cannot finance your purchase with a French lender in the allotted time.
APPOINT A NOTAIRE A Notaire or notary will act as your solicitor throughout the purchase process. We have a list of efficient Englishspeaking Notaires who we recommend to our buyers. These government-sanctioned property lawyers handle any debt searches, building checks and conveyance issues on your property. Their fees are fixed by the government at around 7.2% of the agreed property price, a sum only payable upon purchase. You don’t pay again when you sell the place!
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OFFER ACCEPTED With the price agreed, it’s time to sign the Compromis de Vente. This is the initial sales document that is prepared by a Notaire or registered real estate agent and that lists your name, address and the property that you intend to purchase, plus details of the transaction. It is signed by both the buyer and vendor, and can initially be done in person, by fax, by post or by scanning the signed document and attaching it to an email. If you are not in Nice the compromis will be sent to you via email for you to sign and return to us via express courier (DHL, UPS or Fedex). The Compromis de Vente gives the buyer (but not the vendor) a seven-day grace period to reflect upon your purchase. If you change your mind during this time you may walk away from the deal having lost nothing.
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Pre-arrival Points for Success Please, please, please bear in mind these three key points. Our experience shows that they will make your property purchase quicker, cheaper and less painful.
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Speak to a French bank concerning a mortgage (see next page, Serious money) or chat to our Englishspeaking mortgage broker, Peter Brooke.
It will save you from bringing wage slips and other documents out to France. Moreover, it will also allow you to say to a vendor: “HSBC have all my documents to hand and indicate that I should be able to borrow such and such”. Nothing lets you bargain on the asking price of a property that proving you have the ability to pay what you’re offering. We’ll happily lead any price negotiations by telephone, email or in person, all directed by your good self.
All properties for sale in France are multipally listed
Give us plenty of notice before you arrive. Vendors, Notaires and other parties make a habit of carousing off to Corsica/Italy/St Tropez for a week of sunshine and fine dining. Unlike us, few agencies work at weekends, making our job that bit harder.
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In order to compile your ideal viewing list we need to chat by email, or telephone before you come, then arrange your property visits a week in advance. This is the big one. All properties for sale in France are multipally listed. Contrary to Britain, French vendors allow thousands of agencies to share the effort of selling their property. All these properties across the French Riviera go into an online database called Emulis, of which Nice Pebbles Sales is a registered member. When the transaction is over, the buyer’s agent and vendor’s agent simply split the sales commission, which is paid for by the vendor. There are no extra charges involved.
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Why are we telling you this? Because instead of trawling through Nice’s 800 estate agencies, or Cannes’ 400 estate agencies, most locals and foreigners use only one agency to do all the hard work for them. If you see a super property on another agency’s website or in their shop window, that’s great. Contact us and we’ll arrange a viewing on your behalf. Of course, you are welcome to contact two, three, or even all 6,000 agencies on the French Riviera. But we promise you it won’t save you any money and will only cost you a lot of time. We know this may be different to how the property market works in your country, but we beg you to trust our decade of experience on this point. 18
Serious Money Although our bankers and politicians did their best to derail the global economy a decade ago, the Riviera real estate market proved remarkably resilient. There were no price crashes like Spain, Florida, Italy or Greece. There weren’t even any falls; just incremental rises in property prices from 2007-2013. The Cote d’Azur is the world’s most prestigious tourism, yachting and financial centre – and it’s made of sterner stuff. The French Riviera real estate market blossomed in 2014. The outlook for 2015 looks similarly rosy. Why? Two reasons. Firstly, properties have not boomed for a decade but are now starting to shift. Secondly, it’s all about the interest rates. As European Central Bank deposit rates are currently minus 0.2%, French mortgage rates are reportedly the lowest since records began. Many Nice Pebbles Sales clients opt for an 80% loan-to-value mortgage, where rates hover around 3.4% fixed for 20 or 25 years. By way of example, a €200,000 loan at 3.4% fixed for 25 years would cost around €1,000 per month (with no hidden surprises if interest rates do rise). Variable interest rate deals can be as low as 2.5%. As mentioned, knowing how much you can borrow from whom will stand you in great stead when purchasing your property. If you can prove that all your paperwork (from passport scans to proof of income) is being worked on by the bank, then your vendor will consider you a safer bet. We can also focus our viewing on properties in your price range, with nothing too expensive or too cheap – unless you’d like to visit them for comparison of course.
The French Riviera real estate market blossomed in 2014
Isn’t obtaining a French mortgage a bureaucratic nightmare? It’s the year 2015, so things are remarkably high-tech. French lenders request all your documents by email or Dropbox. Whoever you borrow from, you’ll be kept up-to-date of your mortgage application. Over the last ten years, Peter Brooke from Spectrum IFA has obtained mortgages for many Nice Pebbles clients. Not only is he paid by the banks – rather than by you – he can also score you a better rate than if you wandered into HSBC yourself (which of course you are welcome to do). Further consultation can be done in person in Nice or via Skype. Talk about space age. There’s just one extra cost. All banks will charge a frais de dossier, or mortgage arrangement fee, for obtaining the loan. This charge is sometimes capped by banks but it is normally 1% of the loan value.
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2015 Nice Property News by Tristan Rutherford Truth be told, Nice was the poor cousin of Cannes and Antibes until a decade ago. We had corruption (the former mayor Jacques Médécin fled to Uruguay with millions of francs in ill-gotten gains). We had incompetence (the nation’s most famous bank robber, Albert Spaggiari, was allowed to escape through an open window from Nice’s Palais de Justice, never to be seen again). And we had architectural horror (Place Massena was a roundabout, the municipal casino became a 1970s bus station).
Dear Gayle, I have gone through with that purchase and am now dealing with Hannah in your owners department as I want to rent the flat through Pebbles. I also bought the flat through Pebbles’ Sales and dealt with Maria there. She was delightful to deal with: thoroughly professional and she demonstrated a poise and thoughtfulness. M. Honoc, France, March 2014
That’s all behind us now. Since 2002 a volley of astounding public works have turned Nice into the place to live, work and invest. We now have the busiest airport outside Paris with direct flights to New York, Moscow and Dubai, not to mention free WiFi inside and sunloungers outside. We have an electric car share scheme, Auto Bleu, that’s culled thousands of vehicles off the road. And the 1970s bus station? That’s now the Coulée Verte, a 1km ‘green corridor’ that stretches from place Garibaldi to the Mediterranean. But the big property news for 2015 is the EastWest Tramway. By late 2017, Nice’s second tramline will link France’s fifth largest city to the Nice Cote d’Azur Airport. The 11km route will connect the quays of Nice-Port with the runways on Nice Airport in 26 minutes flat. Or quicker if you reside along one of the 18 other stops like place Garibaldi, place Wilson or avenue Victor Hugo. 20
The benefits are manifold. When the tram is completed, two-thirds of Nice residents will live within walking distance of Tramways 1 and 2. So will 85% of hotels – and you can include holiday rental apartments in that figure. City traffic is scheduled to drop by 5%. Some 2,400 trees will be planted. And every engineer and electrician is guaranteed employment for several years. It’s a win-win. What should buyers look out for when purchasing a property in Nice? Firstly, the biggest leaps in Nice property prices (around 10% a year) occurred during 2005 and 2006. That’s when work on Tramway 1 was at its peak and a finished product could be envisioned, as it should be during 2015 and 2016.
Hi Gayle, we have just completed on the purchase of an apartment through Nice Pebbles Sales. Your colleague Ioana has been fantastic throughout, extremely helpful, prompt in communication and superbly efficient. She even managed to find the apartment for us on our first visit to look. Greg and Tracey Waldron, UK, January 2014
Secondly, keep an eye out for extensions. Rumour has it that the East-West Tramway will reach Riqueur SNCF station a few years later, connecting nicely with rail services east to Monaco and Menton. An extension is already scheduled from Nice Airport to the seaside town of Cagnes-sur-Mer.
I want to commend Pebbles management for their customer-oriented operation which started with our inquiry by email about the apartment we were interested in. Need a better one? iTraveler, via Tripadvisor, October 2014.
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Jardin Pastorelli & Baie View Case Study Victor & Irina Pashaev from Millerovo, Russia Having already bought & started renting Jardin Pastorelli with Pebbles in 2012, Victor and Irina decided to extend their rental portfolio by buying Baie View, which has been with us since 2010. It was one of several properties secretly switched between our Owners in 2014. Jardin Pastorelli continues to be a rental success being let between £100 - £180 per night, or £700 to £1,250 per week. Baie View continues to be a rental success being let between £110 - £240 per night, or £800 - £1700 per week.
It was very easy for us to communicate with Maria …
In general, why have Russians had such an enduring love affair with the French Riviera over the past centuries? What is the particular appeal for you? Is there a special relationship between the South of France and Russia? As far back as the 19th century, Russian tsars and the elite of Russian society chose and loved their holidays on the French Riviera. Nice is now the most “Russian” city in Europe, outside the borders of the former Soviet Union. Here, for a second century, is operating the Orthodox Church, which is outstanding and individual in its architecture. I ended up visiting Nice with my family during a cruise travel in the Mediterranean Sea. Cote d’Azur has stunned us with its unique beauty and its scenery. I remembered for a long time the views from Mont Boron on the Baie des Anges and the port of Nice. An important event took place in our life – we purchased an apartment in Nice, on rue Gioffredo, where we came for holidays a couple of times. On top of that, we got an excellent opportunity to explore the French Riviera in details. What’s the biggest surprise about owning property on the Riviera? After the purchase of our first apartment, we accidentally found out that it could be rented as a holiday property. This gave us an opportunity of earning extra income and still be able to relax with our family, friends and relatives. As a minimum, the rental income allowed us to cover the cost of taxes and utilities. My wife, her name is Irina, is very happy with it.
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Subsequently, our appetites grew and during 2012 - 2014, we purchased a few more apartments, now realizing that they will bring us the income from our ownership of property on the Riviera. Now we have the opportunity to explore the Alpes-Maritimes, the beauty of their rocks and lakes. Why did you choose to buy an apartment on the Riviera? And why in your neighbourhood or area in particular? A few times we climbed on the top of the Chateau (The Castle hill in Nice) with our guests where we could enjoy the beautiful and unique views of the city and port. At the bottom of the castle hill is the Old Town, with its historical architecture and a very particular market – Cours Saleya. We come very often here to have breakfast on the Palais de Justice square. We also combine our walk on the market with a sense and great taste of fruit and milk products that we buy on the market. As we say: “right on the spot!” For Baie View Maria called us to tell us that it was offered for sale. We were sure that this location would be permanently highly in demand amongst travellers from all over the world. This is a very practical location. As well as the sea view from the windows, everything is near. The beaches, port, Old Town, flower market, Place Massena, Promenade des Anglais. We did not hesitate and without bidding (realising that this apartment will not stay for a long time without a buyer) accepted to buy for asking price.
Secret Switches
Big thank you to Maria, she really helped us in getting our mortgage, she went through all the steps together with us, and she was always there for us. It was very easy to communicate with her since she is Russian-speaking . With her help, it was easier for us to communicate with the staff members from Credit Agricole bank.
From time to time, our owners may feel it’s time to cash in on their investment and pass the baton along.
Actually, I have no doubt in Nice Pebbles and their team members who are true experts. We already have experience in dealing with this company. And we are very pleased with the results of their management and renting our apartments in Nice. Hello to all the staff of the company!
With Pebbles, this couldn’t be any simpler and like most things easy, it is a win-win situation for buyers, sellers and guests alike. That’s why Pebbles is growing a firm reputation as a one-stop shop for all property needs in Nice. It simply makes sense. 23
Serious Terminology Agent immobilier A registered real estate agent holding a carte professionnelle. Carte professionnelle The real estate license that all property professionals working in France should be in possession of. This gives the right to draw up sales documents and buy and sell property. Notaire French notaries, known as Notaires, are government-appointed lawyers who oversee all aspects of the purchase process. During a sale they check the title deeds of your prospective purchase, check there is no debt associated with the property, and perform countless other surveys on the apartment or villa in question. We have a list of efficient English-speaking Notaires who you can appoint to handle your property sale in Nice.
After signing a compromis you’ve 7 days to reflect…
Power of Attorney The act of giving another individual, in this case a Notarie, the right to exercise power on your behalf. This is commonly done if you, or the vendor, cannot be there in person on the day of the Acte de Vente. A small administrative charge is applicable for this service. Compromis de Vente The compromis, or compromise of sale, is the first legally binding sales document during the purchase process. It can be drafted by a Notaire or a registered estate agent. It’s usually a simple document that lists the names of the buyer and vendor, plus the details of the property and the sale conditions, including the clause suspensive (often a mortgage clause). After signing a compromis you have seven days to reflect upon the purchase before proceeding with the sale. Clause suspensive The suspensive clause in a Compromis de Vente is there to annul a sale – and ensure the deposit is returned to the buyer – should certain conditions not be met. It is usually used as a mortgage get-out clause, guaranteeing that if you fail to obtain the credit you planned to fund your purchase with, you can still walk away from the deal with your deposit intact. Clauses can also state that certain works must be done in the apartment before the Acte de Vente. Acte de Vente or Acte authentique This is the definitive final act of sale that sees the buyer and vendor meet to exchange and sign contracts. Neither party needs to be physically present if they award their Notarie Power of Attorney to act on their behalf.
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Dépôt de garantie The deposit, normally 10%, that is required to secure a property and continue with the purchase process. Lu et approuvé Literally ‘read and approved’. Signed by the buyer – seemingly thousands of times – on the sales documents. Frais de dossier This is an administrative mortgage arrangement fee that must be paid to the bank that is arranging your loan. Syndic The building manager, normally a small firm who manage several apartment blocks. The syndic takes care of the property’s communal areas and organises an annual general meeting between residents. Facture A bill, usually from a utility company, that is often required as proof of identity. A good estate agent in Nice will transfer the gas, electric and water factures into your name. SCI - a French property owning company An SCI is a company set up for the management and letting of a property, this option is particularly popular with unmarried couples. If the property is bought by the SCI, the members of the company own shares rather than property. As shares are considered to be personal property, not real property, then English succession law applies and the shares can be left in accordance with the deceased’s wishes. The SCI also gives the members a lot of flexibility as they can transfer shares freely between themselves and to others (usually with the agreement of all members only). This means, for example, that parents can gift shares to their children during their lifetime thereby avoiding hefty inheritance tax liability for them, providing the gift was given at least 10 years before death. A special form of the SCI, where the shares are held ‘en tontine’ can be a way of considerably reducing tax liability for gay or unmarried partners. The owners of the SCI must keep accounts and hold an annual general meeting. As a means of avoiding succession law, this structure only works if the owners remain resident in the UK. We advise you speak to your Notaire about this option.
If you fail to obtain the credit you can still walk away…
Dossier de Diagnostic Technique (DDT) A group of surveys carried out by a professional company that test the property for sale for the following: Asbestos, lead, termites, energy efficiency, natural or industrial risks, gas installations, electrics and sceptic tanks.
Throughout this Buyer’s Guide every effort has been made to provide correct information. This information is a general guide only and does not constitute specific advice or direction for which you should make a decision to purchase property. You should check the information prior to any purchase or decision making and no liability can be accepted by us for any action taken or not taken as a result of any information or advice given or omitted.
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Pebbles HQ: 1 Norfolk Street, Glossop, Derbyshire Pebbles Sales: 20 rue de L'Hotel des Postes, Nice Tel: +44 (0)161 471 1000 or +33 (0)4 89 05 06 60 Email: sales@nicepebbles.com nice-pebbles-rentals & nicepebblessales
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