Speaking With Experts - Multi Family Office, Monaco United Advisors, offer their expertise for non-resident buyers on The French Riviera In 2021/22
What role do Family Offices play in the selection and purchase of a luxury property?
A multi-family office has several roles alongside families looking for luxury real estate. In all discretion, he will advise, guide, select and generally simplify all procedures. The MFO is a facilitator and a securer of transactions. In addition, there is a network of privileged relationships which provides access to exceptional properties that are not visible because they are off market. The MFO broadens and refines the research panel. It helps selecting both real estate and ad hoc advisors when necessary.
What are the benefits of using a family office?
The advantages are manifold. An MFO is not regulated in France, while it is regulated in the Principality with skills and compliance requirements as high as banks or notaries. Using an MFO means ensuring complete discretion, legal expertise and tailor-made service. By knowing the needs of the family of which it has a global vision, the MFO helps to build and transmit the heritage.
What is the most important advice you can give to first time foreign buyers looking to purchase property in the south of France?
The first purchase is always an important act that leaves no room for error, whatever the budget. It is essential to be advised by qualified and recognised professionals. It is essential to surround yourself with confidence and upstream of the project. Anticipation is the key word. It will make it possible to understand the purchasing process and to structure this choice legally and financially in the best interests of the family.
What is important for first time buyers in the south of France to know? (5 most important tips) - taxes, specificities regarding mortgages, charges, other costs etc.
It is essential to know this:
- The procedure for preparing and drafting the deed is extremely secure by the intervention of the notary. The risk of bad surprises on the legal aspect of the acquisition is almost nil.
- The operation of bank loans in France is quite simple and the financing of real estate remains an opportunity to borrow at very low rates.
- Registration fees and charges are around 8%, which includes the notary fees and stamp duty.
- Many diagnostics are mandatory (lead, asbestos, electricity, and soon rodents ...) but do not impose any work on the seller prior to the sale. They are information and not guarantees for the benefit of the purchaser, except for the measurement of the surface of the apartments.
Can you do a short holiday rental of the property purchased with a SCI?
It is not prohibited to acquire a property intended for short-term rental via an SCI. But this is not fiscally recommended. During the detention, the corporation tax will be due and during the sale, the capital gain tax will be more important in the absence of thresholds linked to the duration of the detention. It is clearly not the best choice. At this stage, the expert role of the MFO is essential.
What legal and administrative pitfalls should international first time buyers watch out for when buying a property on the French Riviera?
The pitfalls, anticipate and be well supported remain the essential rules. This is the raison d'être of an MFO. French law offers a withdrawal period of 10 days to the purchaser. This period, which comes after the signing of the preliminary contract, allows you to be informed of all the legal aspects related to the chosen asset (access, easement, building permit, compliance, sanitation, etc.). Investing for yourself and for your children, in the South of France, is definitely an excellent location.
What type of properties around Monaco attract the interest of your clients?
The properties are very varied. They can be contemporary
or more Provençal. This range responds to the broad spectrum of the clientele: from international workers with school children to more senior wealthy clients who seek calm and serenity, including sportsmen happy to be between sea and mountain, all at the gates of France and from Italy, with access to the whole world via Nice International airport.
What type of properties in Saint Tropez attract the interest of your clients?
I will compare buying a villa in Saint Tropez
to buying a yacht. There is fun, friends and business. On a yacht you have several decks that allow you to receive clients or friends, while keeping a private area for the family. It's the same spirit in one property in Saint Tropez. People welcome guests at home, quiet and out of sight. In a light spirit and a holiday atmosphere, however, there is a lot of business that takes place in the summer, in the most beautiful villas of Saint Tropez
. Definitely one of the best locations in the world.
For more information or to organise a private consultation with Monaco United Advisors, please contact: [email protected]