Pickles Posted November 4, 2014 Share Posted November 4, 2014 According to Midi Libre, itself quoting Les Echos, the government is to propose yet again an increase in TdH for second homes in "sensitive areas" primarily cities where there is a shortage of rented accommodation, but the measure could be applied to any second home, particularly those owned by non-residents. It would be up to local authorities to decide whether or not to implement the tax.Here's hoping that our sale goes through as planned ...!There is also a proposal to increase the taxe de sejour for certain classes of accommodation, and to tax "airbnb" type stays, as well as the websites themselves - good luck on that one! Link to comment Share on other sites More sharing options...
woolybanana Posted November 4, 2014 Share Posted November 4, 2014 The non-resident bit may be aimed at French people living and working abroad and not UK expats and others of their ilk. However, a tax aimed at only one group would be deemed illegal, I think, by the constitutional court.We await events.Pickels, how long has it taken for you to get your sale this far and how much did you have to drop your price? Link to comment Share on other sites More sharing options...
Pickles Posted November 4, 2014 Author Share Posted November 4, 2014 [quote user="woolybanana"]Pickels, how long has it taken for you to get your sale this far and how much did you have to drop your price?[/quote]When we signed up with the immo, we agreed a price that was about 7% lower than we had been told the property was worth about 2 years previously. We gave the immo a leeway of 10% on that price. That was in March 2013. A couple of months ago, after much discussion, we dropped the asking price by 5% but reduced the margin for negotiation so our bottom price was still the same. We then sold pretty much straight away for the same bottom price that we had originally set - ie 90% of the March 2013 price. We expect to complete the sale in December. It's a city centre flat. Link to comment Share on other sites More sharing options...
NormanH Posted November 4, 2014 Share Posted November 4, 2014 I think you should mention that Montpellier like Paris is atypical in that the prices are both extremely high to start with and are not at all dropping as elsewhere in France. It is one of the places the French name as being the place they would most like to move to.As I mentioned in another thread prices in the sort of areas often favoured by British buyers are a different thing.In the Ariège for example properties are going for 65% of the asking price, and I am sure it is similar in other rural areas where there are no jobs to sustain the property market Link to comment Share on other sites More sharing options...
Pickles Posted November 4, 2014 Author Share Posted November 4, 2014 [quote user="NormanH"]I think you should mention that Montpellier like Paris is atypical in that the prices are both extremely high to start with and are not at all dropping as elsewhere in France. It is one of the places the French name as being the place they would most like to move to.As I mentioned in another thread prices in the sort of areas often favoured by British buyers are a different thing.In the Ariège for example properties are going for 65% of the asking price, and I am sure it is similar in other rural areas where there are no jobs to sustain the property market [/quote]Indeed: I think that many city centres are seeing a slower decrease in prices than is being experienced elsewhere - especially when compared with more rural locations. The primary demand for our property was always going to be as a main residence rather than holiday home. It is definitely not a typical holiday home purchase. It wasn't what I had in mind as a holiday home purchase at the start, but my other half determined otherwise! Even so, it's taken 18 months to sell ... Link to comment Share on other sites More sharing options...
Quillan Posted November 4, 2014 Share Posted November 4, 2014 [quote user="NormanH"]I think you should mention that Montpellier like Paris is atypical in that the prices are both extremely high to start with and are not at all dropping as elsewhere in France. It is one of the places the French name as being the place they would most like to move to.[/quote]Hang on Norman. Montpellier is also a major university city with three universities each having several campus's. There are only six halls of residence and the rst of the students live in multiple residency accommodation. Every year the local council organises a "Student Accommodation Fair" at the Corum. Property prices also stay high because property is in high demand for student accommodation as well as it being a place many want to live. If I were younger it is a place I would like to live as it is, particularly in term time, a very vibrant city in which to live. So much of Montpellier is geared to student life and the main square is a brilliant place to visit as it is so 'alive' in the evenings.Indeed the same could be said of certain areas of Toulouse as that also has universities. Both cities do also have a 'darker side' where property prices struggle because of the large amount of North African immigrants living there. Having just got back from Perpignan the same goes there but not to the same (house price) degree. I do also think that France, like the UK, has suffered from greatly inflated house prices but then it is down to the old supply and demand thing I guess. Link to comment Share on other sites More sharing options...
DraytonBoy Posted November 5, 2014 Share Posted November 5, 2014 Yet another stupid idea from a hopeless government which will raise very little in extra revenue. Until they either cut public spending or create jobs then the deficit will not come down. Link to comment Share on other sites More sharing options...
Lehaut Posted November 5, 2014 Share Posted November 5, 2014 Certainly agree about Toulouse. Have housed our eldest there for his studies at N7 this year. Initial lodgings were expensive, damp and tatty. We have paid over the odds to get him into a new development for the first year until he gets to know the city. There are I think 100,000 students. When we went in late July it had an eerie deserted feel to it as such a high percentage of the population was missing! Link to comment Share on other sites More sharing options...
NormanH Posted November 5, 2014 Share Posted November 5, 2014 This increase is only for places like Montpellier and Toulouse btw... Link to comment Share on other sites More sharing options...
Pickles Posted November 5, 2014 Author Share Posted November 5, 2014 [quote user="NormanH"]This increase is only for places like Montpellier and Toulouse btw...[/quote]They mentioned 30 urban areas without naming them, but also seemed to imply that other areas could apply the measure themselves. Anyway, we will have to see whether it gets through the vote (there is an element of turkeys voting for Christmas here) and then if so, what form of words makes it through. Link to comment Share on other sites More sharing options...
Pommier Posted November 5, 2014 Share Posted November 5, 2014 Where we live in the Vendee, holiday home owners pay more TdH than residents. Link to comment Share on other sites More sharing options...
idun Posted November 5, 2014 Share Posted November 5, 2014 Yes, they do, but it won't stop the cash strapped local authorities asking for more........ will it[:-))] Link to comment Share on other sites More sharing options...
Pickles Posted November 5, 2014 Author Share Posted November 5, 2014 [quote user="Pommier"]Where we live in the Vendee, holiday home owners pay more TdH than residents.[/quote]Yes, but isn't that simply because residents get rebates (starting with the 2-3% main residence rebate and then continuing with income-related rebates)? Link to comment Share on other sites More sharing options...
idun Posted November 5, 2014 Share Posted November 5, 2014 [:)]Well, there you go............I never thought of it as 'rebate'. I only ever thought of it as the figures being based on the family income and circumstances. If there is nothing to influence the original figure, it will stand as it is. Link to comment Share on other sites More sharing options...
Gardengirl Posted November 5, 2014 Share Posted November 5, 2014 I'd read it was to apply to major cities too - big sigh of relief, at least for now! Link to comment Share on other sites More sharing options...
Sprogster Posted November 6, 2014 Share Posted November 6, 2014 If this is passed which it almost certainly will, it is the precedent that worries me more than the initial amount involved, as it is designed to create more housing stock and reduce house prices by pursuading second home owners to sell and release their properties to local buyers. What it says is that the current French government don't like second home owners and if the 20% tax surcharge does not hurt, it will be increased until the desired effect is achieved! Link to comment Share on other sites More sharing options...
Sprogster Posted November 6, 2014 Share Posted November 6, 2014 Garde girl, I believe this is also targeted at popular tourist and second home areas such as near the Med and the Dordogne, where foreigners are perceived as inflating local house prices! Link to comment Share on other sites More sharing options...
mint Posted November 6, 2014 Share Posted November 6, 2014 [quote user="Sprogster"]Garde girl, I believe this is also targeted at popular tourist and second home areas such as near the Med and the Dordogne, where foreigners are perceived as inflating local house prices![/quote]I can't say for the med because I don't know that area but, certainly for the Dordogne, prices have fallen and are continuing to fall more sharply than in many of the surrounding areas.It's the case that many second home owners were already selling up and perhaps they will now sell up in greater numbers?I did hear a second home owner complaining and saying she was wondering why they were bothering to hang on to their 2nd home (bought some 20 years ago) in the face of rising taxes and the more general hike in cost of living. Link to comment Share on other sites More sharing options...
Lehaut Posted November 6, 2014 Share Posted November 6, 2014 Local councils also have the right to charge full rates of taxes on land that is classed as being "constuctible". So if you live in an area where building land is tight and you have a big garden/area of land, you could see your taxes rise much more than 20%. Only a few have used this right so far, but as budgets tighten, would not be surprised if more don't. I understand the logic being, if houses were build on the land, then the council would get extra taxes. As an individual if you have not sold the land for building, nor built any houses on it, you should pay the "missing" taxes. Link to comment Share on other sites More sharing options...
Gardengirl Posted November 6, 2014 Share Posted November 6, 2014 [quote user="Sprogster"]Garde girl, I believe this is also targeted at popular tourist and second home areas such as near the Med and the Dordogne, where foreigners are perceived as inflating local house prices![/quote]Our little town is very popular with French from other parts of the country and foreigners, but is over-supplied with houses for sale. As prices are somewhat elevated over those in nearby towns, such as Nimes, we might possibly not be hit at first. However, I do think it might well be the thin end of the wedge if it's passed. Link to comment Share on other sites More sharing options...
NormanH Posted November 12, 2014 Share Posted November 12, 2014 For the moment it is only Sète and Montpellier that are concerned in the Languedoc:http://www.midilibre.fr/2014/11/12/residences-secondaires-voici-les-villes-ou-la-taxe-d-habitation-pourrait-flamber,1080323.php Link to comment Share on other sites More sharing options...
Pickles Posted November 12, 2014 Author Share Posted November 12, 2014 I thought that they were supposed to be voting on it this afternoon? Has it passed? Link to comment Share on other sites More sharing options...
Pickles Posted November 13, 2014 Author Share Posted November 13, 2014 I'll answer my own question: yes, it was voted through yesterday. It will apply in 2015 and henceforth, so will not be applied retrospectively to 2014, apparently. Link to comment Share on other sites More sharing options...
Théière Posted November 13, 2014 Share Posted November 13, 2014 Oh well, lets see how it pans out, If indeed second home owners do sell then that will produce a housing glut and prices will fall further and tourism will suffer so does the tax hike = the loss of tourism revenue? Link to comment Share on other sites More sharing options...
NormanH Posted November 13, 2014 Share Posted November 13, 2014 The idea is to encourage a release onto the market of property in areas where there is a shortage for first-home owners. Link to comment Share on other sites More sharing options...
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