7 minute read
Property and Finance - SW France
New Ways with property sales
The beginning of a new era in property sales? It certainly looks like it could be.
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It’s way too early to tell what effect the COVID-19 pandemic will have on the property market going forward, but Joanna Leggett shares her thoughts on some long term changes and tells us how agents and Notaires are adapting in the meantime.
Given the volume of enquiries we have been receiving, people may not be able to physically view properties but, with time on their hands, they are certainly looking online and planning for a time when a semblance of normality returns.
INNOVATIVE NOTAIRES
“Of immediate importance are the people in the middle of a property purchase/ sale. What happens to them? With over 1m sales in the last 12 months, the French property market has been at its hottest for years.
“Our immediate take is that most of them are using common sense to try and complete the transactions. For example, many are saying that they will now accept an e-mailed “power of attorney” from buyers stuck in the UK, or from vendors unable to leave home (with the original, signed, document being put in the post). Joanna continues “Anyone who has lived in France for more than five minutes will, however, understand that different officials have different interpretations of what is and isn’t allowed. A Notaire in rural Dordogne may not now have put the same new protocols in place as one in Paris or Nice! Our agents and head office support team are flat out talking with vendors, buyers and Notaires, finding solutions to this (hopefully once in a lifetime) situation.
VIRTUAL TECHNOLOGY
“For those looking to sell their property all is not lost. There is technology in place to create an e-mandat (mandate) or e-avenant (price change) without anyone needing to visit. We have been talking with vendors about the kind of photos they should be taking, which they are then sending through electronically. This means that we can take the mandate, discuss valuations (using a mix of local knowledge, comparable evidence and Google Earth) and create basic property details on their behalf (DPE reports and measurements excluded, until the lockdown is over).
Modern house hunters are used to looking on the internet and our listings are full of videos and virtual tours. Our agents are more than used to taking clients on “virtual visits” that often last an hour or longer.
THE FUTURE IS CHANGING
“What about the longer term impact on the industry? Well, nobody in their right mind would be foolish enough to predict what is going to happen in terms of house prices in the near future. That will depend upon the length and depth of the crisis, as well as the overall political and economic impact. All I would say is that the property market here in France was healthy and robust beforehand and our economy was strong. I’m cautiously optimistic that the property market here will emerge relatively unscathed. “However, the way that clients view properties will change (with more reliance on virtual viewings before committing to the real thing). Who knows, agents might even be more willing to give out the exact address rather than a vague idea of which town or village it might be in!
Electronic signature for mandates and completion contracts will quickly become standard and the whole process should be secured and speeded up by using the Blockchain - or so my younger colleagues tell me!
“Property search and purchase was entering a new era anyway”, she concludes. “My view is that one of the unexpected consequences of this damned Coronavirus will be to usher it in earlier than expected. That’s for the coming weeks and months though - for now I urge all readers to adhere to the precautions and, above all, our humble thanks go out to all those in the front line.”
www.leggettfrance.com
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PENSIONS, INVESTMENT AND COVID-19
ANDREA GLOVER & TONY DELVALLE INTERNATIONAL FINANCIAL ADVISERS
The coronavirus pandemic is having a huge impact on ourdaily lives and finances.
For many readers there is also an impact on their pension and investment funds due to extreme volatility in the financial markets and global economic disruption. We asked Andrea Glover and Tony Delvalle from The Spectrum IFA Group about their thoughts on the current market conditions and the general reaction they have seen from their own clients.
MARKETS
Andrea explained, “Financial markets don’t like bad news; the current coronavirus outbreak and the oil crisis in early March are no exception to that rule. We are all aware of the impact such events have on stock markets and although downturns are not unusual, they can be very unsettling.
LONGER TERM VIEW
In these situations and at these times, it can be natural to consider taking some sort of action but, often, the best plan is to do nothing at all – particularly when you are investing for the longer term.” Tony added, “It’s important to take a long term view when investing. An investment plan established during more settled times should not be abandoned when there is a market downturn. We keep up to date with the fund managers who are monitoring the markets to ensure the investments are protected as best they can be and grow over the longer term. In times like these, they focus on valuations, investment processes and look to buy more assets at attractive prices, and with the appropriate risk for clients.”
LOOKING AT HISTORY
Andrea went on to say, “No one can say for sure how long this downturn will last as we also have the US presidential elections and the end of the BREXIT transition period to come. We would be naive not to expect some further twists and turns in the short term, but we can look at what’s happened before when faced with global economic, social and political challenges. History tells us that the global stock markets weathered all of these well, with markets recovering over the longer term.”
REACTIONS
Tony commented, “We have contacted every one of our clients during this time, to talk through the impact of the current situation. There has been a mixed reaction ranging from clients with further funds wanting to invest in what they see as an opportune time, to other clients cancelling regular withdrawals so as not to compound any short-term losses. Each client has individual needs, aspirations and attitude to risk and it’s the role of financial advisers to understand this from the outset, as it is fundamental to the advice they give.” Andrea summarised “Communication is key in a time like this as it can really help clients through this unsettling period when, understandably, some will be nervous about their pensions and investments. It’s the responsibility of a financial adviser to support clients through a bumpy ride, providing them with the information and reassurance that they need.” Andrea and Tony are fully operational, working from home and available for calls or video conference during the confinement period.
The article above is providedfor information purposes only.It does not constitute adviceor a recommendation fromThe Spectrum IFA Group.
+33(0)6 89 02 84 74 / +33 (0)6 77 99 86 74 tony.delvalle@spectrum-ifa.com / andrea.glover@spectrum-ifa.com
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LEGAL ADVICE
Sarah Bright Thomas is an Avocat Associé and Partner at Bright Avocats.
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