My guess is that we share a similar goal of socking
away enough funds so that when retirement rolls around, we can put our feet up,
sleep past the 6 AM alarm clock, or take that long-awaited trip we've
pined after. It's just that the equities market has not played into our dream "fairly"
and most of us have had to tighten our belt, readjust our sights, or even
seriously question our next move.
1. Diversification-
While
I certainly agree that investing for long term growth is a
prudent goal, so is portfolio
diversification. One of my clients from California
quietly commented that their investment in a home share in France has been their best performing
investment in the last few years. Not only has it not declined in value,
it has seen about a 20% appreciation since 2006. Fractionals in Europe not only offer diversity from the equity market, they also offer diversity in the currency market as well.
2. Time Value of Money
Can we really afford to have our money not working hard for us? As an investment advisor in Portland, Oregon from 1993-2003, our portfolio manager stressed the concept of "the time value of money". Yes, I
could leave $50,000 in an equity which had been beaten down and wait for it to
come back to break even before I sold it. But,
if chances were that my $50,000 was going to languish for an uncertain period
of time, not allowing my money to really work for me, we could consider
shifting it to an investment with stronger fundatmentals. Euro based real
estate has certainly has been a strong investment for us since 1998.
3. Stable real estate investment
The Financial Times commented on Wednesday ( 10/29/08): In France,
innovation in housing finance has been slow and French banks' prudence has
limited the debt that housebuyers can take on. French mortgage terms are
shorter than elsewhere, typically 15 years, and often at fixed interest rates.
There was no "subprime" mortgage market, as in the US.
Unlike in
the US and UK, the French have not borrowed
heavily on the back of the rising value of their houses.
4. Strenghtening dollar buys more
The dollar is continuing to strengthen against
the Euro and is the best it's been in two years. Whereas one greenback cost a whopping 1.60 euro in mid- July, it has vastly improved today: $1.26 gets you 1.00 euro - more affordable travel again!
5. Enjoyment
Have your cake and eat it too! What could be more fun (and profitable) than investing in an appreciating asset which you can use year after year, in FRANCE?
5. Demand vs supply
Someone once explained to me why France
continues to be the most sought after of European vacation destinations.
Geographically, smack in the middle of the continent, it is reachable by car
for virtually all sun seeking European travelers. Additionally, if you throw in
the history, culture, food, and prices, it is still a bargain.
My hunch is that price
pressure will continue. A recent poll of the British indicated that a full 50%
of them would like to own a vacation or retirement home in France. For
many in the UK,
French prices still seem a huge bargain compared to their home soil.
6. Demographics influence pricing
Let's
face it- demand for affordable elegant vacation homes is not going to decrease
but rather increase with our current demographics of 213 million boomers
competing for a uniquely similar retirement lifestyle in the next 15 years.
7. A Fraction of the Price
OK- You've dreamed of having your
own place in France ever since that first travel vacation when you and your
family rented a house in a small hill town near Avignon. You remember
the lazy days exploring pottery in those small Provencal villages, the delight
of discovering that meals lasted 2 and ½ hours, the charm of markets where
fresh oysters abound for Sunday shoppers.
Whether you are investing in Paris, the Languedoc, or elsewhere, Fractional
ownership is the ultimate alternative to sole ownership or seasonal
rental. Why pay for more than you can use?
Five shares remain at Maison Bleue at affordable prices
Only $58900 for 1/10th share
Ginny Blackwell
French Property Shares
Tel: (001) 585 905-0849
Email: info@frenchpropertyshares.com
