Monday, May 27, 2013

French Châteaux for Sale: As Rich Parisians Flee the Taxman Real Estate Prices Fall

It's not just Paris:

Picture of Spectacular French Chateau
Location: Limoges area
5,000,000 EUR

From Bloomberg:
If you’ve dreamed of buying a luxurious Paris pied à terre, this could be the time to act. Real-estate agencies specializing in high-end Paris properties say prices are down 10 percent to 20 percent this year. The inventory of unsold properties has been rising as the French economy stagnates and some wealthy owners flee the country to escape new taxes on the rich. “There are some opportunities now—properties that have never been on the market before,” says Marie-Hélène Lundgreen, director of the Belles Demeures de France agency. Lundgreen’s agency recently sold a Paris mansion that had been in the same French family for generations, to a Brazilian buyer.

Richard Tzipine, who heads the Paris office of the Barnes International agency, says his stock of unsold properties has risen about 50 percent over the past year. Among the reasons: higher taxes imposed since President François Hollande took office last year, including an increase in a levy on wealthy households’ assets and a new 75 percent tax on incomes over €1 million ($1.29 million) annually. “I’ve personally seen a number of clients who are going to live in other countries,” including Belgium, Britain, and Switzerland, Tzipine says.

As the French sell, foreigners buy. Jean-Philippe Roux, director of the Paris office of John Taylor Luxury Real Estate, says foreigners bought 70 percent of the properties sold by his agency during the first quarter of this year. Lebanese, Russians, and Chinese are among the most frequent buyers, he said....MORE
Picture of 50 minutes from Biarritz French Chateau For Sale
50 minutes from Biarritz
2,200,000 EUR
Picture of Versailles French Chateau For Sale
43,000,000 EUR