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Everything you always wanted to know about France - from France |
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How Do I Start a Fractional Ownership OpportunityTony We are looking for an old stone house ( 2/3 bed) with some land/ garden( or a villa)( maybe a pool) in the country tho not too isolated, in the Gard or Vaucluse...or just on the Gard side of the Herault . I know these older propeties are v dear now hence the idea of part ownership. We have retired and downsized and travel a lot but would also like to have a foot in a property in France to spend more time there. We could put in about 70,000 Euros. Where can I find out details such as .. who decides if work needs doing? decoration etc and what happens if you need to sell ( tax problems?)... before we get too involved? Thank you. Wendy === Hello Wendy We are building a strong list of people looking for properties and also a good portfolio of properties on offer so we plan to be the best resource for you. There are many things to consider and we are making sure that all the legal and financial points are well researched and that we can offer fair and honest services. Through the newsletters, forums and website I will keep you informed of all opportunities immediately we find them. You can for your own group and look to buy a property together, or you can decide to buy shares in properties which are being offered directly from the owners. We belive that the individuals looking at any specific property will be like-minded and all will of course be able to contact and discuss matters with each other. We are developing a comprehensive registration form for buyers so that we can readily match offers and introductions to others seeking property. For 70,000 euro it is possible to find a suitable property, as you describe, in the region you want with a sixth or eight share, if, and this is the big question, if you can find a suitable property where: either the owner will allow time to structure a Fractional Ownership company and then sell shares, or you find one buyer who will retain shares and sell to other fractional owners. This is where our skills and experience are needed. In some cases we can help by finding an investor to finance the whole purchase for you, but this will carry an extra overhead cost, although this is diluted by the number of shareholders and is not a high premium. The shareholders, four, six, eight, ten or twelve usually, all have a vote in the company and the decisions or alterations, repairs and furnishings are decided by a majority vote in most cases. The terms of this are agreed and set out in the articles of association of the company. A management company is normally appointed to look after, clean and maintain the property - often this company can also deal with rentals for the owners. The shareholders decide to keep or can fire this company. The shareholders own the freehold and are in total control. Our services include building the portfolio of properties offered, to introduce people to these offers and form groups of shareholders to buy property, to ensure the legal and financial structures are in place for each property company and also to help all shareholders find other suitable places through the expanding network of properties worldwide. You own shares in the company which owns the freehold of a property. You can sell these shares just like any other asset. Capital gains may be due, depending on the stature the shares are declared under, a French SCI will have capital gains in France. Income from rentals is part of your income and needs to be declared, most countries have dual taxation agreements with France so you need to esablish your individual position with this. I am in Vaucluse tomorrow looking at property. Best wishes Tony There are over 2,000 features and articles on this site about French life and living in France. You can search from the search box above. Do browse through our website and please use the advertising links, they help pay for the site. I do try to reply to all mail - Contact Me - most is about property or living in France. I publish comments in this newsletter which I believe are of interest and may help find answers for people wanting to come to France. I hope readers will go to the adverts which help support our overheads. |
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