The perfect time to bag a bargain

There are always some incredibly good value properties to be had in this region but right now, there are some fantastic bargains – the unintended consequence of the change in the law ‘plus value’ or capital gains tax. This won’t alter anything for non-French residents with second homes in France, nor for those of us who have our permanent homes in France but it is having a big effect on the French property market right now, particularly here where many locals own second and holiday homes.

In the past, French owners of second homes would have had no capital gains tax to pay on the sale of these properties after 15 years and a generous taper allowance when selling before 15 years but this law is due to change on the 1^st February meaning that capital gains tax will be due for all second properties owned by French residents for less than 30 years and with a much reduced taper allowance up to the 30 years.

Hence suddenly I am seeing a lot of fantastic properties coming onto the market with owners very keen to sell and very willing to take offers if it means that they will complete by January 31^st. In fact, they are in many cases putting their property on the market at less than it has been valued for but only until the end of January; here’s an example of a private sale;

Bien estimé par notaire et agences 150 000€, cédé à 137 000€ en raison nouvelle taxe sur la plus valu.
Au premier février cette offre ne tiendra plus. (Valued by notaires and agencies at 150,000 Euros but offered at 137,000 Euros because of the new capital gains tax. From 1^st February, this offer will no longer be available.)

Hence, for anyone who is looking for a bargain (and let’s be honest, who isn’t?) this, along with historically low interest rates, is making the next few months look like a very good time to be buying a house in the Midi-Pyrénées.