Savills Monaco has had a busy time on the rental front recently and is keen to hear from any owner interested in renting out his/ her apartment. There is demand for all types but the larger the better!
Savills Monaco is delighted to be sponsoring an event to be held on 14 November in the Fairmont, in collaboration with Club Vivanova. Gavin Sharpe, entrepreneur and executive and leadership coach, will be taking us on a journey, learning about being an exceptional business leader in extraordinary times. It looks to be entertaining and will certainly be lively.
More details are available at this Club Vivanova event link. The last event we did together was sold out so book now!
Less locally, we are also hosting with Savills UK, plus Porsche and Bremont (amazing watch designers) an event to be held in the UK on 7 December. In the amazing Destination Porsche venue in Reading, we will be talking about real estate and Porsche will have new (with an electrification theme) and rare classic cars on display. Anyone interested in knowing more, should contact Irene Luke.
L’e Marquis Luxury Lifestyle Offers the Finest Properties in St Tropez - The Art of Luxury Living
L’e Marquis Luxury Lifestyle Offers the Finest Properties in St Tropez - The Art of Luxury Living
Book your stay with us and we can offer an electric Moke
Hot Patch is an exquisite, recently refurbished villa located on Boulevard Patch, just an 8-minute stroll from the renowned Club 55 restaurant and the stunning Pampelonne beach. This luxurious villa offers mesmerising sea views overlooking Pampelonne Bay.
The villa boasts five bedrooms, each with an ensuite bathroom, comfortably accommodating up to 10 guests. The interior features an elegant blend of pristine white walls and natural wood, accentuated by floor-to-ceiling windows, tasteful artwork, and bespoke furnishings. The bedrooms are all thoughtfully decorated to harmonise with the villa's theme. A well-equipped, sunlit kitchen with a breakfast bar provides all the necessary amenities for culinary excellence. Wi-Fi and air conditioning are available throughout the villa, along with a comprehensive sound system and alarm system.
Stepping outside, you'll discover lush, plant-filled gardens housing a heated swimming pool, a rejuvenating jacuzzi, a charming pool house, and alfresco dining facilities. The villa also offers parking space for up to 3 cars.
For your convenience, a maid service is provided for 5 hours daily, 5 days a week, with the option to arrange additional hours at an extra cost. Should you desire a chef, butler, chauffeur, or airport transfer, these services can be arranged. L’e Marquis also offers a comprehensive concierge service, including assistance with Beach Bar and Restaurant reservations.
St Tropez is renowned for its breathtaking beaches, opulent lifestyle, and lively nightlife. It boasts exquisite beach clubs, a picturesque harbour, a quaint old town, a historic citadel, art galleries, a vibrant nightlife, and a variety of events and festivals. St Tropez has a long history of attracting celebrities and is celebrated for its delectable seafood cuisine and fantastic shopping opportunities.
When you book your stay with us, no request is too extravagant. Hot Patch - St Tropez Luxury exemplifies our commitment to delivering the same lavish lifestyle service in all our destinations.
Website
The Heart of Courchevel - Luxury, Comfort and Leisure in the French Alps - Courchevel 1850
Heart of Courchevel is an outstanding Luxury Chalet of 2200 m2, situated on the Bellecote area in Courchevel 1850, with direct access to the Bellecote slope. With eight bedrooms and bathrooms, it accommodates 16 people and offers all the luxury, comfort and leisure after an exhilarating day on the slopes.
Fully serviced, it has an array of staff ready to make your stay unforgettable including housekeepers, a butler, a chalet manager, chef, assistant chef, driver with Mercedes Viano, laundry service and a masseuse.
The Chalet offers a great space for families and friends to spend quality time together, whether it be over Christmas, New Year or during 2024. With a night disco, cinema, swimming pool, sauna, steam room, massage room, jacuzzi and conference room, there is everything you need for a perfect family holiday.
One of the most glamorous resorts in the French Alps, Courchevel 1850 has its own airstrip, countless Michelin-star restaurants, ritzy hotels, bars and high-end shops and boutiques, offering everything from designer fashion to luxury goods. Home to the best luxury chalets in the Courchevel Valley the resort attracts visitors from around the world, including skiers, snowboarders, and luxury travellers seeking a high-end alpine experience.
Part of Les 3 Vallees, Courchevel 1850 has a vast ski network covering 600 km. The resort boasts breathtaking alpine scenery, with stunning panoramic views of the surrounding mountains and valleys and 150 km of pistes served by 58 lifts. For beginners, the resort has special ZEN zones created for them to ski safely, whilst more experienced skiers can enjoy steep descents and some of the best off-piste skiing in the Alps. Beyond skiing and snowboarding, visitors can enjoy other winter activities like snowshoeing, ice skating, snowmobiling, and more.
For those not so keen on skiing, there are a number of other ways to explore Courchevel 1850, from helicopter rides and paragliding to segways and mountain biking. For nature lovers, we suggest taking a snowshoe hike or Nordic walk from your Courchevel chalet, or for the adventurous, there is a 2 km toboggan run from the Tovets ski run in Courchevel 1850 down to Courchevel Village.
A haven for families, Courchevel 1850 has an assortment of family-friendly attractions, including a bowling alley and a cinema. Skating enthusiasts can put their skills to the test on the indoor ice rink nestled in the heart of the town. Even the summertime in Courchevel 1850 is alluring, playing host to an array of both sporting and musical events.
Nothing is too much trouble when you book your stay through us.
Find out more at this link
Ski Chalets Limone Unveils a Unique New Concept Design for Holiday Home Grand Chalet Veranda in Limone - Piemonte
Ski Chalets Limone unveils a unique new concept design for Holiday Home Grand Chalet Veranda in the local ski resort of Limone, Piemonte.
Two homes connected by a steel/glass veranda is a new concept design that will directly offer the advantages of a large 5/6 bedroom luxury chalet.
The design features luxurious amenities of a complete indoor private SPA and swimming pool as well as the functional benefit of 3 lockout garages which is very convenient. The Grand Chalet Veranda concept design also contains a spacious game/tv room which is ideal for families.
Luca Catalano, CEO of Ski Chalets Limone explains, “Grand Chalet Veranda is the best of both worlds. This is truly one of our most unique concept designs for the chalets at Villa Almellina Estate.
By connecting two homes, the design gains maximum advantage with the amenities and comforts it can provide as one very large chalet. The 3 lockout garages (4 parking spaces) and its close proximity to the village and the slopes make it very practical and easy for living.”
Located at just a 5-minute walk to the village of Limone and to the ski lifts, Villa Almellina is an exclusive residential community of newly built chalets. Built with a contemporary style with rustic mountain features like exposed wood beams, wood floors, and beautiful mason-crafted stonework.
This new concept design offers a sense of well-being and comfort in stylish and rustic decor in every space. The chalet is completely outfitted with high-end and innovative equipment bringing ease and functionality through the Premium Specification package.
The chalets are all built with high-quality finishings and materials with eco-friendly features such as home automation and solar panels.
For those looking for a local mountain getaway to enjoy well-being and nature in all seasons, Holiday Home Grand Chalet Veranda is designed for maximum comfort and enjoyment in the heart of the Italian Alps in Limone.
You can download the new e-brochure here.
For sales information for Holiday Home Chalet Veranda please contact Luca Catalano.
Ski Chalets Limone is a Club Vivanova Corporate Partner
Le Marquis Luxury Lifestyle Sardinia - Portisco Beach Villa - One of the Best Places to Rent on the Planet
With a fantastic 270 degree view of the Mediterranean, Portisco Beach Villa is located between Costa Smeralda’s most famous resorts: Porto Cervo and Porto Rotondo, both of which are only 15 minutes away.
With a new private dock, mooring and the use of a jetty in front of the villa is available and a well-equipped marina with shops and restaurants is just a few minutes’ drive away. Portisco Beach Villa has been designed by the renowned architect Ferdinando Fagnola, and absolute privacy and security is guaranteed within a private domain. With an exquisite and uninterrupted view of the Mediterranean, the unique design that is almost invisible from the sea, blends in with the nature of the large garden and flora.
The house was completely refurbished in 2013 with tasteful, elegant interiors and the latest technology including a Home Cinema, PC and printer. The 20 metre swimming pool with sea water and private access to a very secluded beach makes this property a great choice. With air conditioning throughout, the property is built on a single level, with two separate sections, joined by a patio and a large terrace overlooking the sea. Accommodating up to 13 guests, it is the only villa in Sardinia to be listed in ‘Best Places to rent on the Planet’.
Porto Cervo features a range of high-end boutiques and designer stores, offering luxury fashion, jewellery, and accessories. Renowned for its vibrant nightlife scene there are several bars, clubs, and exclusive venues that cater to a sophisticated clientele. During the summer months, the nightlife in Porto Cervo is particularly lively, with parties and events attracting visitors from all over.
For yacht enthusiasts, the marina in Porto Cervo is one of the main attractions and hosts prestigious sailing events, including the Maxi Yacht Rolex Cup and the Loro Piana Superyacht Regatta. The marina’s waterfront promenade is lined with shops, cafes, and bars.
Porto Rotondo is a small village and marina known for its picturesque beaches, luxury resorts, and vibrant nightlife. Founded in the 1960s by a group of Italian entrepreneurs, including the famous Italian actor and filmmaker, Luigi Volpi, they created an exclusive and luxurious holiday resort, attracting affluent visitors from around the world. Today, Porto Rotondo continues to be a sought-after destination for those seeking a blend of natural beauty and upmarket amenities.
The area features several stunning beaches with crystal-clear waters, such as Spiaggia Ira, Spiaggia dei Sassi, and Punta Volpe. These beaches offer opportunities for sunbathing, swimming, snorkeling, and other water activities. Porto Rotondo's marina is also a hub for yacht owners and sailing enthusiasts.
L’e Marquis Luxury Lifestyle has the finest properties in Sardinia. Book your stay with us and experience our superb concierge service, we guarantee you won’t be disappointed. Learn more
Hauthuille Investor Relations Hosts Les Constructeurs du Bois SA Presentation at the Novotel Monte-Carlo
Hauthuille Investor Relations
Monaco Non-Deal Roadshow
Wednesday 5th July 2023
Novotel Monte-Carlo, 10:45 – 11:45 (in English)
Novotel Monte-Carlo, 12:15 – 13:45 (in French) includes buffet lunch
RSVP Online
Les Constructeurs du Bois SA
Euronext-Listed
Specialist in wooden buildings
IPO in 2020 at €1.50 ; current share price €4.40
This is to invite you to meet this fast-growing company as it promotes in Monaco its Euronext-listed stock. Founded in 2011 in the Vosges region of France, Euronext-listed Les Constructeurs du Bois SA (LCB) offers a comprehensive range of timber construction services, including feasibility studies, project management and turnkey construction.
IPO in October 2020 at a price of 1.50 euros. Current share price 4.40 euros.
Strong sales growth: €5.1m in 2020, €9.5m in 2022, €15.2m in 2023 (e). Business volume is expected to reach €150m by 2025.
Wood is 15 times more insulating than concrete and 1500 times more than steel. A wooden building or house is easier to heat and to cool down.
Speaker: François Duchaine, Founder & CEO
Company website
ISIN: FR00140007I9
If you would like to attend, please reply to this e-mail. Company representatives will be available to meet with you immediately after the presentation or later at your offices.
*Terms and Conditions apply
Experience the Tranquility of Augustus’ Secret - a Hidden Gem in Saint-Rémy-de-Provence
Augustus’ Secret
A stone’s throw from the centre of Saint-Rémy-de-Provence this gem of a property is one of the town’s best kept secrets. Situated out of sight within a closed landscape garden of 2ha, this extraordinary farmhouse was entirely renovated in 2022, using the highest-quality materials. The house comprises spacious living areas and five large suites, one of which is completely independent of the main house. All the rooms on the ground floor offer access to the garden. There is also a studio independent from the main house with bedroom, shower room and lounge area.
Saint-Rémy-de-Provence (often called St Rémy) is a very quaint town in the Apilles. Steeped in history this medieval village has its own Arc de Triomphe, Mausolée des Antiques and the Monastery Saint Paul de Mausole, along with chic restaurants, lots of tempting boutiques and a charming pedestrian-friendly centre.
Vincent van Gogh arrived in Saint-Rémy-de-Provence on 8 May 1889 after suffering a major mental crisis in which he cut off his earlobe. Arriving from Arles, he voluntarily committed himself to Saint-Paul de Mausole psychiatric hospital and stayed there for a year, until May 1890. It was in his hospital room that he experienced the major period in his life as an artist, and produced almost 150 paintings and numerous drawings, including ‘The Starry Night’, ‘The Almond Tree Branch in Bloom’ and ‘The Iris’.
Le Marquis Luxury Lifestyle has the finest properties in Provence and the South of France. Book your stay with us and experience our superb concierge service, we guarantee you won’t be disappointed.
Link to more information
VIP Villa Near Monaco - Available for Rental and Retreat - Luxurious Sea and Mountain Views
VIP SELECT VILLA FOR RENTAL AND RETREAT - AVAILABLE TO BOOK NOW
La Turbie Monaco Border - Luxurious Monaco, Sea and Mountain Views
Sleeps 8 on 4 double beds plus double sofa 2 total 10 people
6 Bathrooms and 6 toilets which is very rare in the south of France to have all rooms with individual toilets
£2500 per night high season for low season please check for our discount
{min 5 nights stay}
Link to more information
Join Savills Spotlight on Monaco 2023 Webinar - A Booming Residential Property Market
Join Savills Spotlight on Monaco 2023 Webinar - A Booming Residential Property Market
Monaco has long been a favoured destination of the world’s wealthiest, thanks to its political and economic stability, favourable fiscal environment, and excellent climate and quality of life. In our latest Spotlight: Monaco – 2023 report, we explore how this long-standing appeal has contributed to a booming residential property market over the past decade and beyond, uncovering recent price and rental movements, the growing new-build market, and what we predict for the Monaco property market.
Download the report here.
Interested in finding out more?
Join our webinar on Tuesday 4 April where our panel of property experts take at look at how the Monaco market performed in Monaco over 2022 and what we can expect in 2023. We will also welcome a guest speaker, Birgitta Bondonno, who will discuss everything you need to know about taxation, if you’re considering moving to Monaco.Interested in finding out more?
Sign up via this link.
LIV Developers Launches New Ultra-Luxury Development to Feature $20.4 Million Penthouse
LIV Developers Launches New Ultra-Luxury Development, to feature $20.4mn Penthouse
The LIV LUX project will offer world-class facilities to residents and investors, including a 24-hour white-glove valet service.
LIV Developers is launching its newest project, LIV LUX, a G+47 ultra-luxury residential tower located in one of Dubai Marina’s most sought-after locations. LIV LUX will usher a new level of luxury living, with never-seen-before striking architecture, just across from the Le Royal Meridien and Ritz Carlton Hotels.
With over $435mn in the pipeline of projects under construction, LIV LUX further supports the company’s expansion plans in the region. LIV Developers will also pursue aggressive regional expansion plans to increase its land bank portfolio in ultra-prime locations of Dubai, with values in excess of $544.9mn.
Taking affluent lifestyle to new heights, LIV LUX will offer residents and investors 47 storeys of refined living with state-of-the-art amenities, unparalleled sea views and resort-style facilities.
Consisting of one-, two-, three and four-bedroom super-luxury apartments, as well as signature duplex penthouses, LIV LUX will cater to buyers looking for refined living in prime locations, or for those seeking real estate investment with high rental yields.
LIV LUX will introduce the Signature & Penthouse Collections, comprised of an array of super luxurious residences.
The residential Tower elevates the availability of deluxe residences in Dubai Marina, with nearly half of the units comprised of LIV’s Signature Collection.
The LIV LUX Penthouses, spanning between 650m2 to 1,393m2, offer features such as private art galleries, outdoor jacuzzis, zen gardens, and infinity edge pools on private terraces.
Ultra Luxury Penthouse
Anchoring the building at the top two levels, the SuperLux penthouse is Dubai Marina’s first-of-its-kind penthouse priced at $20.4 million.
The bespoke residence is comprised of two full floors totalling 1,418m2. With a 9-meter infinity swimming pool on its terrace, 6-meter double-height ceilings, and amazing entertainment spaces, the penthouse takes its place amongst the finest in the world.
Commenting on the announcement, Ishan Khwaja, director of LIV Developers said: “We are excited to announce the launch of our third project in Dubai Marina, LIV LUX. There is no doubt that the real estate sector in Dubai is booming. After witnessing outstanding results and record-high transactions in the past year, the demand for luxury and super-luxury residences in Dubai continues to grow.
“We have chosen to build LIV LUX in Dubai Marina after seeing the tremendous success of our latest project of 2022, LIV MARINA, which has sold out in record time. These outstanding developments consistently re-affirms Dubai Marina as the top choice location for investors and buyers.”
An addition to the Dubai Marina skyline
Labelled as the new crown jewel of Dubai Marina, LIV LUX features luxurious finishes matched with spectacular sea views, promising residents a unique way of living.
Providing large and contemporary spaces, the apartments will embody sophisticated modernism and offer cutting-edge appliances and amenities from renowned brands such as Miele, Siemens, Bang & Olufsen and Villeroy & Boch.
To further enhance the lifestyle of residents, LIV LUX will offer distinctive facilities spanning across 2,508m2, including a 27-meter lap pool, padel court, golf putting green, conference facilities, outdoor cinema, and private residence beauty salon.
The introduction of LIV LUX continues LIV Developers’ legacy of building bespoke homes for the discerning global citizen.
LIV MARINA is sold out after only a few months since its launch in April 2022. LIV MARINA, which commenced construction in 2022, has had construction quickly proceed to reach the 12th floor in just under seven months, and a 20% completion rate as per the latest RERA inspection, with expected completion in 2025.
Source
LIV Developers is a Club Vivanova Platinum Partner
An Interview with Jessica and Nisha Stockmann of Villa Monaco - Why Always Sons and Not Daughters?
Club Vivanova Interviews Jessica and Nisha Stockmann - Why Always Sons and Not Daughters?
Jessica, you founded and run a company together with your daughter. What is special for you about working together with your daughter?
I can have a very honest exchange with my daughter. Nisha has her incredibly good taste and her very own ideas and of course I have mine, but we cross-fertilise each other and don't slow each other down. Not only did she study architecture and spatial design, she also grew up in several countries and cultures and therefore thinks very internationally and is part of the new, young generation, the generation Z that values completely different things.
Nisha, you work with your mother. A good feeling?
So far, yes! But if things were to change, we would find a way. I learned from my mother that there are always solutions, so I have no fears that we could clash professionally. Our recipe for peaceful and successful coexistence is communication, and that has always been a top priority in the Stockmann family.
Did you have to set up rules in advance, along the lines of separating private and business matters?
We don't need any new rules. My mother always had a lot of respect for the younger generation and therefore took me into the team on an equal footing. She often tells me that she can learn a lot from me. I studied spatial design and my mother is more of a self-made woman. So we complement each other very well and are not in competition with each other.
Many young women have little desire to keep close ties to their parents even after their education. What is different with you?
My grandmother was super close with my great-grandmother, my mother was inseparable with her mother, that somehow seems to run through the family and I am super happy that it is so.
Jessica, your company is called Stockmann. Why not Stockmann & Daughters?
I thought long and hard about calling us Stockmann & Daughters, but I didn't want to put pressure on my two daughters to work with me one day. My big daughter Nisha decided on her own, but my little daughter Nicita is only 18 and started university. She is studying Media & communication management.
She should be free to decide where her career path might take her. In our projects, we run under Stockmann³ because we see the cubic metre and thus the whole space and not just the square metre. And the 3 actually also stands for 3 generations. Our desire is to create spaces in which three generations also feel comfortable.
It is noticeable that there are hardly any companies that have a "& Daughters" in their name instead of the familiar "& Sons". Do you have an explanation for this?
There are certainly historical reasons for this. Daughters did not enter the workforce in the past and even fewer took over family businesses. In the past, a woman was responsible for the household and the children, not for the company. In 1920, women were not even allowed to study in Germany and 100 years later, a minority of companies are still run by women.
To set an example, I would actually have to call my company Stockmann & Töchter, but that would create immense pressure on my girls. And what will we do when a grandson comes into the house? The poor boy might need his place too (laughs).
What drives you in your joint activities?
(Jessica) - Above all, we enjoy our projects and divide our tasks very well. Of course, there is a moment in every project when you feel like throwing everything away, but we like to take responsibility, a virtue that is often dying out, so once we start a project, we see it through to the end. Only when there is a bouquet of flowers on the table and at least one candle burning is the project ready to move in.
Jessica, you are still known above all for your acting and your moderations. How did you get into real estate?
After 15 very successful years in show business, I became a mother and a short time later I was a completely unplanned single parent. I was looking for a solution that would allow me to be a mother and earn money to give my daughters and me a good life with the best education. I was looking for a new challenge that would allow me to travel less and, above all, spend more time with my children.
The construction industry seemed more mother-friendly than the TV industry, which involves many night shoots and long journeys. Not knowing that as a woman I was entering a total male domain, I took out very large loans and began to buy and renovate properties with the corresponding risk. My business studies helped me with the calculations, and my father was and still is my great advisor. I wanted to create, but no longer in front of the camera and created new stages for myself with my building sites, which I now directed. All of a sudden I was producer, director and actor in one, but on the construction site.
What qualifications did you have to acquire to be successful in the luxury real estate segment?
(Jessica) - I constantly and always have my eyes open. In every restaurant, hotel or airport - I look everywhere to see which materials have been processed and how. In the luxury segment, it's all about quality that lasts 100 years. But we also have to know exactly what is "in" and trendy at the moment. Of course, working with Nisha is worth its weight in gold. She knows exactly what the young target group wants. I, on the other hand, know what the 30-70-year-old customers value. The best thing is to come up with something that doesn't yet exist. Customers pay more for luxury than for standard, but their demands are disproportionately high. Just "chic" is not enough. It has to be sustainable, elegant, modern and yet traditional with various design highlights.
And do you like to take risks professionally?
Of course, I would prefer a safe business without risk, but that's hardly possible. Every success requires courage, but my investments have never really felt courageous to me because I was so sure I was doing the right thing. In retrospect, I often realised how brave I was.
Nisha, you started studying architecture with the specific focus of working together with your mother?
No, to be honest, that's how it turned out. Even as a 6-year-old, I preferred building entire cities and hotels with Lego to playing with dolls. My mother often tried to make me like Barbie, but to no avail. All I ever wanted to do was build. During my studies I made various plans, sketches and mood boards for my mother. At some point she started handing me the Excel spreadsheets and said: "Since you're not studying business, I'll explain to you on the basis of our real estate how it looks with the somewhat boring, uncreative things, because just being creative is often not enough to understand the context". Before I knew it, I was helping her prepare the tax returns. My mother cleverly offloaded that onto me - (laughs).
What makes a nice property for both of you?
(Jessica) - Location is important and the property or plot has to feel good from the start, no matter what condition it is in. Our goal is that you feel so comfortable in the finished property that you don't want to leave it rain or shine. Accordingly, we build, renovate and design.
How do you proceed when you find a property that is exciting for you?
(Jessica) - The most difficult thing is "finding". We search daily, keep our ears open and work with various estate agents. Somehow it's just like with interpersonal relationships. They don't just lie around on the street. But when it "clicks", everything often happens very quickly. When we fall in love with a property, everything happens at breakneck speed. We try to look at the property several times, and film and photograph it, in order to later highlight the advantages and resolve the disadvantages.
Then we get a surveyor, and after that comes the loan. Once that's in place, we go to the notary and as soon as we're registered in the land register, we tear out the first walls and the fun begins (both laugh).
Jessica Stockmann is the owner of Villa Monaco - a Club Vivanova Platinum Partner
Villa Monaco is a Club Vivanova Platinum Partner
View our Villa Monaco Feature
Propiteer Capital - Investing in the Booming UK Hotel Sector
Propiteer Capital - Investing in the Booming UK Hotel Sector
Despite some challenges in recent years, the hospitality sector shows great strength and optimism for the new year. Find out more about industry forecasts and hotel investment opportunities in 2023.
With domestic, tourist, and business travel on the rise, the UK hotel sector has been booming its way out of the pandemic. An industry that once crumbled under the pressures of lockdowns has experienced an impressive recovery over the last few years. But this growth doesn’t come without its headwinds, which are primarily triggered by a looming recession and long-term Covid-19 effects, but the sector remains incredibly resilient as hotel bookings, tradings, and investments stay strong.
Success in 2022
Two years since the eruption of Covid-19, the hospitality industry was set for a successful year in 2022. While offices and retail spaces faced a decline, hotels began an upward trend as people were keen to book holidays again and the rise of staycations began. Even by the end of 2021, a year of lockdowns, the global travel industry grew by an astonishing 4% versus 2020. Propiteer blog
Over the course of the past year, hotel performance has met positive expectations and trading proved to be strong throughout. New hybrid working trends and flexible business travel contributed to a strong recovery, and London in particular fuelled significant growth for the UK with occupancy rates in the capital having achieved 70% between April and October 2022. The year ended in a positive position as regional hotels exceeded their 2019 RevPAR (revenue per available room) figure by 3.5%.
Hotel investments also had a strong start to 2022 and held positive momentum throughout the year. In the January to April 2022 period, UK hotel transaction volumes exceeded £1.5bn, surpassing the H1 2021 volumes by 40% and showing a robust sector recovery. Performance was relatively evenly split between London (approximately £750m) and UK regions (approximately £800m). More online
Challenges in 2023
The hospitality sector has certainly had its challenges over the last few years. The economic struggle in 2022 is one of the factors impacting hotel performance and creating an uncertain outlook for the year ahead with soaring inflation, energy, and rising interest rates all providing considerable headwinds. Rising costs threaten areas such as employment and operations, but the government is due to introduce a new tax relief scheme in 2023, which will keep VAT at its current rate beyond April to support hospitality businesses with the growing costs. BBC News link
Covid-19 has also caused some lingering damage. In the UK, the hospitality sector experienced a loss of £115bn as a result of forced business closures and travel bans for months at a time. Even once hotels, restaurants, and airports started to reopen, some consumer apprehension towards travel remained, which caused a delayed recovery. Nonetheless, hospitality has seen one of the strongest bounce-backs from Covid-19 pressures and defied most expectations.
Optimism for hotels in 2023
“…hospitality can and will be the leading contributor to the UK’s economic recovery” – Pernille Thomsen, UK Hospitality
Despite a looming recession and continued fallout caused by coronavirus, there are signs of hope that make this an exciting time to consider investing in the UK hotel sector.
Business travel is one area that has been bouncing back and contributing to the growth of hotels, and both domestic and international travel are confidently returning to pre-pandemic levels. On average, travel managers estimate that domestic <link: https://www.traveldailymedia.com/business-travel-strong-outlook-in-2023-gbta/> business travel volumes are back to 63% and international back to 50% of pre-pandemic levels, and 2023 growth is expected to surpass that of 2022. Optimism is incredibly strong and neither Covid-19 nor economic implications seem to be stopping industry growth in the new year as 75% of travel buyers claim they won’t be limiting business travel due to economic concerns and only 4% say they may limit business due to Covid-19.
Some of the key forecasts for the UK hotel sector include:
· London RevPAR growth to rise by nearly 6%
· London occupancy to increase by over 8%
· UK regions occupancy to increase by over 2%
Despite the regional RevPAR being anticipated to drop by 0.6% in 2023, Samantha Ward, UK Hotels Leader at PWC, says that “hotels across the UK can weather this latest disruption, emerging stronger and more resilient for the future.”
Hilton hotel growth exceeds expectations
One of the largest and fastest-growing hospitality brands, Hilton, is just one example of the remarkable strength, consumer demand, and investment opportunities within the hotel industry. During Covid-19 recovery in 2021, Hilton’s global growth enabled more than one hotel to be opened per day throughout the year. Hilton’s loyalty programme Hilton Honors also expanded to 128m members, a 13% increase year on year to December 2021. Information link
In Q3 2022, Hilton Worldwide sales increased by 36% year on year, and earnings per share (EPS) reached $1.31, up from $0.78 from the previous year and beating the consensus of $1.24. HLT shares are also up 1.48%. Hilton Worldwide President and CEO Christopher Nassetta comments: “Improved performance reflected the continued strength in leisure travel, as well as recovering business transient and group demand. We expect these strong trends to continue throughout the fourth quarter with system-wide RevPAR once again exceeding prior peaks.” Information link
Hotel investment opportunities in 2023
There are many opportunities for commercial investors to take advantage of in 2023. Here are some of the top UK hotel construction projects to explore:
• Duke Street Hotel Complex, Liverpool, $40m – A former car park is being converted into an eight-storey hotel at 107-125 Duke Street.
• Palace Hotel Redevelopment, Devon, $30m – A 5-star hotel conversion of a former Palace Hotel in Torquay is expected to be completed in late 2023.
• Indigo Hotel Development, Coventry, $25m – A five-storey hotel with 100 rooms in Friargate is due to be completed in Q4 2023.
• Hilton Garden Inn Peterborough City Centre, £26m – A prestigious city-centre hotel with an iconic Sky Bar and key tourist attractions nearby aspires to be the finest Hilton Garden inn in Europe to date.
• Hampton by Hilton Exeter Airport, Devon £23m – With easy links to Exeter airport, this award-winning hotel has a focus on sustainability with new solar panels recently installed. The local area is currently undergoing new travel improvements.
This post was written by Propiteer Capital PLC that works with the Hilton group and provides investment opportunities into new hotel developments around the UK and Ireland. Read more
Blevins Franks Financial News - France 2023 Budget and Tax Update
By Rob Kay, Senior Partner, Blevins Franks
The French government published its 2023 projet de loi de finances on 26 September. This now has to pass through the usual parliamentary process before being finalised and approved at the end of the year.
Unsurprisingly, the budget’s main purpose is to help protect households and businesses from inflation. During the press conference, Finance Minister Bruno Le Maire said that “no new spending” will be approved unless it has “been budgeted to the nearest euro”. He added that the economy was “holding up”, but the state’s absolute priority was to bring down inflationary pressures.
The finance bill therefore includes a €45 billion package to help households and companies with energy prices increases, including capping gas and electricity bills at 15% in early 2023.
2023 taxation
Considering the current local and international economic context, this budget does not carry any significant reform. Income tax bands will increase – thereby reducing tax liabilities – and there are no tax rises.
Income tax
The income tax bands will increase by 5.4%, to match inflation.
The income tax rate bands and scale rates for 2022 income are:
Up to €10,777 – nil
€10,778 to €27,748 – 11%
€27,749 to €78,570 – 30%
€78,570 to €168,994 – 41%
Over €168,994 – 45%
This means that employees who received a pay rise because of inflation are much less likely to be hit by a higher tax rate. Those whose income has not changed will now benefit by paying less tax on it.
Note that these new tax brackets apply to your 2022 income (as declared in the tax return you submit in spring 2023).
The budget also facilitates the lowering of income tax withholding at source if the taxpayer’s income decreases, as well as simplifying the collection of taxes for foreign employers who have employees who are French tax residents and regularly work from home.
Taxe d’habitation and TV licence reform
The taxe d’habitation reform which began a few years ago reaches its conclusion in 2023, with the complete suppression for the remaining 20% of households who were still paying it.
This budget also confirms the removal of the TV licence (contribution a l’audiovisuel public) implemented in the August 2022 revised budget.
Succession taxes reform
During his presidential campaign, Emmanuel Macron promised to reform and diminish succession taxes by increasing the tax-free deduction for inheritances between parents and children from €100,000 to €150,000, and by lowering the taxes for other relatives such as stepchildren.
However, given the current economic context, the government does not support this reform at the present time. It could still be voted on by Parliament further to a MP amendment, but this is uncertain.
Social charges
The budget maintains social charges at the same rates as 2022:
Employment income – 9.7%
Pension income – 9.1%
Investment income – 17.2%
The special lower rates also remain in place:
Pensions – Social charges on pensions are reduced to 7.4% for those whose taxable income is less than approximately €2,000 a month (€3,000 for a couple). If you have Form S1, and/or are not subject to the French health care system, you do not need to pay any social charges your pension income, regardless of the amount you receive.
Investment income – If you are covered under the health care system of another EU/EEA country, or if you have Form S1, social charges are reduced from 17.2% to 7.5% for investment and property income. Earlier this year the French government confirmed this continues to apply to UK residents and to UK nationals living in France.
Real estate wealth tax (IFI)
The current threshold of €1,300,000 will stay in place for 2023 and no changes are proposed to the scale rates of wealth tax.
Assurance-vie
The budget does not include any changes to the taxation of Assurance-vie policies.
The savings and investment ‘wrappers’ remain very attractive from both a tax and succession planning point of view.
The finance bill is now being debated by parliament and will be approved by the end of the year. There may be changes as it goes through the process.
Please do not hesitate to get it in touch with our advisers if you need any clarification or feel it is time to review your tax planning to ensure it is up to date and as effective as it could be.
Tax rates, scope and reliefs may change. Any statements concerning taxation are based upon our understanding of current taxation laws and practices which are subject to change. Tax information has been summarised; individuals should seek personalised advice.
Blevins Franks Group is represented in France by the following companies: Blevins Franks Wealth Management Limited (BFWML) and Blevins Franks France SASU (BFF). BFWML is authorised and regulated by the Malta Financial Services Authority, registered number C 92917. Authorised to conduct investment services under the Investment Services Act and authorised to carry out insurance intermediary activities under the Insurance Distribution Act. Where advice is provided outside of Malta via the Insurance Distribution Directive or the Markets in Financial Instruments Directive II, the applicable regulatory system differs in some respects from that of Malta. BFWML also provides taxation advice; its tax advisers are fully qualified tax specialists. Blevins Franks France SASU (BFF), is registered with ORIAS, registered number 07 027 475, and authorised as ‘Conseil en Investissements Financiers’ and ‘Courtiers d’Assurance’ Category B (register can be consulted on www.orias.fr). Member of ANACOFI-CIF. BFF’s registered office: 1 rue Pablo Neruda, 33140 Villenave d’Ornon – RCS BX 498 800 465 APE 6622Z. Garantie Financière et Assurance de Responsabilité Civile Professionnelle conformes aux articles L 541-3 du Code Monétaire et Financier and L512-6 and 512-7 du Code des Assurances (assureur MMA). Blevins Franks Trustees Limited is authorised and regulated by the Malta Financial Services Authority for the administration of retirement schemes. This promotion has been approved and issued by BFWML.
You can find other financial advisory articles by visiting our website here
Blevins Franks Financial Tips - The Multi-Manager Investment Approach – Specialists vs Generalists
Multi-manager investment enables your portfolio to be managed by several different fund managers, each selected for their expertise in specific market sectors. This ‘open architecture’ approach reduces your reliance on any one investment manager making the right decisions in all conditions, and provides the opportunity to have some of the world’s best mangers looking after your money.
By Rob Kay, Senior Partner, Blevins Franks
Did you see the athletics at the Commonwealth Games in Birmingham this summer? Or at the World or European Championships? And of course we had the Tokyo Olympics last year. It was great to see British success emerging with the likes of Jake Wightman, Keely Hodgkinson, Laura Muir and Eilish McColgan, but interestingly, there are some aspects of what you may have seen that are directly relevant to investing.
Specialists vs generalists – a sporting analogy
A useful way to explain the benefits of a multi-manager investment approach is to compare the difference in performance between a decathlon champion and the individual champion in each event.
You may have watched the athletics at the Commonwealth Games or European Championships and marvelled at the decathletes’ abilities. They have to be skilled at 10 different disciplines, quite a Herculean task – speed for sprinting, stamina for distance, strength for the field events and technique for events like the pole vault.
But while the decathlon champion is obviously an all-round athlete performing at an extremely high standard across ten different disciplines, they are frequently beaten by specialists in each of the individual events.
Let’s compare the performance of the decathlon gold medallist at the 2020 Tokyo Olympics (held in 2021) against the individual gold medallists in some of the individual disciplines.
The decathlon champion Damian Warner ran the 100m in 10.12 seconds. Lamont Marcell Jacobs took just 9.80 seconds in the individual event. The results of the other nine disciplines tell the same story. For example, Warner threw the javelin 63.44m, while the individual event gold medallist achieved 87.58m. Warner reached a height of 4.90m in the pole vault compared to the individual champion’s 6.02m. The specialist performed better than the generalist every time.
You would not expect a sprinter like Lamont Marcell Jacobs or Usain Bolt to also specialise in pole vault or javelin; specialists tend to be just that – specialists. There are many situations in life where a specialist performs more efficiently and delivers better results than a generalist, and this is particularly true in investments.
Just because an investment manager is skilled at managing UK equities, for example, does not mean he will be as successful at managing US or Japanese equities. Managers also tend to specialise in a certain style of investing, and these styles move in and out of favour according to economic and other factors. They will therefore produce impressive results in certain conditions, but below average ones in others.
Some investors rely on just one or two fund managers to look after their investment capital. But wouldn’t you prefer to have individual specialists managing the various areas of the market your capital is invested in?
Multi-manager investing
Today most investors agree that holding different asset classes and different regions and sectors in their portfolio spreads risk. Multi-manager funds add a third, and increasingly important, level of diversification to your portfolio.
You will benefit from a team of specialist managers, as well as diversification across multiple investment styles within each fund, with different managers looking after one style. So one fund could have five or more specialist managers, covering a variety of styles (growth, value, quality, risk management, market oriented etc).
This complementary blending of managers and styles can reduce investment risk, regardless of what style is in favour, and help provide more consistent returns through different market environments.
Just like a strained muscle would hamper the decathlete in all his events, if prevailing market conditions are unfavourable to a single manager’s investment approach, performance may suffer. Multi-manager spreads risk as it lowers the investor’s dependence on the success of a single manager’s approach.
Going back to the sporting analogy, in the world of athletics individual champions can easily change from year to year. The same can happen with investment managers, but the multi-manager firm’s research is designed to find the next champions. They constantly monitor their funds, so that managers can be changed as and when necessary to improve performance for clients.
Multi-manager investing is not designed to attempt to win a gold medal in just one particular season. Rather, it aims to produce consistent results, season by season, over a long-term period.
This investment approach can prove suitable for various investors with different needs. However, you should always discuss your requirements with a professional financial adviser, as your investment strategy should be targeted to meet your personal objectives. At Blevins Franks, we combine investment advice with effective tax and estate planning strategies, to maximise wealth preservation opportunities.
These views are put forward for consideration purposes only as the suitability of any investment is dependent on the investment objectives, time horizon and attitude to risk of the investor. The value of investments can fall as well as rise, as can the income arising from them. Past performance should not be seen as an indication of future performance.
Blevins Franks Group is represented in France by the following companies: Blevins Franks Wealth Management Limited (BFWML) and Blevins Franks France SASU (BFF). BFWML is authorised and regulated by the Malta Financial Services Authority, registered number C 92917. Authorised to conduct investment services under the Investment Services Act and authorised to carry out insurance intermediary activities under the Insurance Distribution Act. Where advice is provided outside of Malta via the Insurance Distribution Directive or the Markets in Financial Instruments Directive II, the applicable regulatory system differs in some respects from that of Malta. BFWML also provides taxation advice; its tax advisers are fully qualified tax specialists. Blevins Franks France SASU (BFF), is registered with ORIAS, registered number 07 027 475, and authorised as ‘Conseil en Investissements Financiers’ and ‘Courtiers d’Assurance’ Category B (register can be consulted on www.orias.fr). Member of ANACOFI-CIF. BFF’s registered office: 1 rue Pablo Neruda, 33140 Villenave d’Ornon – RCS BX 498 800 465 APE 6622Z. Garantie Financière et Assurance de Responsabilité Civile Professionnelle conformes aux articles L 541-3 du Code Monétaire et Financier and L512-6 and 512-7 du Code des Assurances (assureur MMA). Blevins Franks Trustees Limited is authorised and regulated by the Malta Financial Services Authority for the administration of retirement schemes. This promotion has been approved and issued by BFWML.
You can find other financial advisory articles by visiting our website here
Blevins Frank Financial Tips - Inflation Concerns Today and Planning for the Future
Inflation is causing concern in across the EU and in the UK. It has been climbing steadily since last summer, hitting over 8% in the Euro area in June and July and expected to climb to 13% in the UK. Even low levels impact your spending power over time, so take steps now to protect your savings and retirement income for your long-term future.
Inflation has been a major news story this year, but we don’t need to read news reports to know the cost of living is going up, we’re only too aware with our weekly shops and electricity bills.
This follows 10 years of benign, easy to ignore inflation, but in fact we were not immune from it then. It is always there, slowly eroding the spending power of the Euro in our pocket and we should always be vigilant about how it impacts our financial security through retirement.
Although this inflation surge is lasting considerably longer than first anticipated, and is likely to get worse before it gets better, it is not still not expected to be long-term. But hopefully people will view it as an eye opener and take this long-term threat more seriously now. We cannot predict what inflation will be in ten or twenty-years’ time, but we do know that even low levels can seriously reduce your spending power over time if your money does not grow at the same rate.
The Eurozone
The Harmonised Index of Consumer Prices (HICP) was 2.2% in July 2021. This July it hit 8.9%, another record for the single currency.
French consumer prices, as measured by the local Consumer Price Index (CPI) reached 6.1% in July, up from June’s 5.8%. The acceleration of service prices linked to the summer period has contributed to the increase, as have food prices. Energy prices, however, slowed.
The UK
In the UK, the Consumer Price Index reached 10.1% in July, up from 9.4% the previous month. The July figure was the highest annual CPI inflation rate in the National Statistic series, which began in January 1997. Rising food prices made the largest upward contribution.
Will inflation remain high?
When prices began rising last summer, that was largely caused by the ‘base effect’ (inflation the previous year had been unusually low in the pandemic) and supply difficulties as economies exited from lockdowns. However, the crisis in Ukraine then exacerbated the issues, particularly with energy prices escalating though uncertainty about supply chains has also pushed prices up.
In July, the European Commission revised its Eurozone 2022 inflation forecast upwards, from 6.1% for the year to 7.6% – peaking at 8.4% in the third quarter. It will then ease to 4% for 2023 as a whole, falling below 3% in the last three months of the year.
Its Summer Economic Forecast explains:
“Russia's invasion of Ukraine has put additional upward pressures on energy and food commodity prices. These are feeding global inflationary pressures, eroding the purchasing power of households and triggering a faster monetary policy response than previously assumed.”
In the UK, the Bank of England has issued bleaker forecasts. On 4 August it warned that it now predicts inflation to hit 13% in the last quarter of the year, and that it will “remain at very elevated levels throughout much of 2023, before falling to the 2% target two years ahead”.
In response to inflation, the Bank of England has raised its interest rate six consecutive times since December 2021. At its latest Monetary Policy Meeting on 3 August, the committee voted 8-1 to increase the bank rate by 0.5 percentage points, to 1.75%. This is the highest since December 2008 – but still a long way below inflation.
Inflation and your savings and retirement income
No-one is immune from inflation. We all need to plan to protect our savings and future income from the rising cost of living. Making sure your money lasts as long as we do should be an integral part of our financial planning for retirement.
If you’re retiring now at age 60, you need to plan for over 30 years of retirement. Unless your savings grow each year, they will buy you considerably less as the years go by.
As a basic illustration, if you have €50,000 in a current account with no growth, and inflation is 3% every year, after 10 years its value will have fallen to around €37,000. After 20 years it’s around €27,500 and after 30 just €20,555. That’s a 59% reduction in purchasing power.
You therefore need to invest in assets that can be expected to produce enough growth to at least keep up with inflation. As we know from the last decade, bank interest rates cannot be expected to do this – in fact, many savers have been earning negative real rates of return.
While you may become more averse to investment risk in retirement, remember that inflation is also a big risk to your savings. You can reduce investment risk to comfortable levels by obtaining an objective calculation of your attitude to risk, then building a suitable well-diversified portfolio around your risk tolerance, time horizon, circumstances and objectives.
Holding your investment portfolio within an arrangement that is tax efficient in your country of residence helps protect your capital from unnecessary taxation as well as inflation. Review your financial planning annually to have peace of mind about your future, then get back to enjoying your retirement years.
HICP/CPI inflation data is at 25 August 2022.
By Rob Kay, Senior Partner, Blevins Franks
Blevins Franks Group is represented in France by the following companies: Blevins Franks Wealth Management Limited (BFWML) and Blevins Franks France SASU (BFF). BFWML is authorised and regulated by the Malta Financial Services Authority, registered number C 92917. Authorised to conduct investment services under the Investment Services Act and authorised to carry out insurance intermediary activities under the Insurance Distribution Act. Where advice is provided outside of Malta via the Insurance Distribution Directive or the Markets in Financial Instruments Directive II, the applicable regulatory system differs in some respects from that of Malta. BFWML also provides taxation advice; its tax advisers are fully qualified tax specialists. Blevins Franks France SASU (BFF), is registered with ORIAS, registered number 07 027 475, and authorised as ‘Conseil en Investissements Financiers’ and ‘Courtiers d’Assurance’ Category B (register can be consulted on www.orias.fr). Member of ANACOFI-CIF. BFF’s registered office: 1 rue Pablo Neruda, 33140 Villenave d’Ornon – RCS BX 498 800 465 APE 6622Z. Garantie Financière et Assurance de Responsabilité Civile Professionnelle conformes aux articles L 541-3 du Code Monétaire et Financier and L512-6 and 512-7 du Code des Assurances (assureur MMA). Blevins Franks Trustees Limited is authorised and regulated by the Malta Financial Services Authority for the administration of retirement schemes. This promotion has been approved and issued by BFWML.
You can find other financial advisory articles by visiting our website here
Lorenza von Stein Worldwide Realty - Prime Position Port Hercule Renovated Apartment Now Available for Purchase
Located in prime position in the Port Hercule, offering a panoramic sea view looking out to the Port and the Mediterranean sea, this stunning two bedroom apartment has been renovated and designed to perfection.
As you walk through the entrance hall, enter into a bright and stylish open-plan living space, perfectly designed for entertaining. The main room features a generous lounging area to one side, as well as a beautifully crafter bar area, lined with genuine brown marble, a dining table seating 4, as well as a spacious open plan kitchen area, equipped with Miele appliances & a separate island, offering more seating possibilities.
The living area's flawless aesthetic is curated by the backdrop of the views overlooking the Port area, while a spacious terrace offers a direct view of the starting line of the Grand-Prix.
The property features two bedrooms. A spacious master bedroom, with ensuite shower room, and a generous ensuite dressing area. And a second bedroom with ensuite shower room and an abundance of closet space. Both bathrooms in the property benefit from under-floor heating.
All in all, the apartment has been stylishly finished with the highest quality materials and with a great attention to detail, and is presented throughout with a combination of custom-made and designer furniture with original artwork and mood lighting.
The apartment is composed as follows: an entry hall, a double living and dining area with a fully equipped kitchen, a master bedroom with an ensuite bathroom and dressing area, a second bedroom with an ensuite bathroom and built in storage space, a guest toilet, and a large terrace overlooking the Port Hercules.
Apartment is sold with 1 cellar in the building.
The apartment has been fully equipped with a Sonos surround system, as well as a mood lighting system by Lutron.
Parking for the apartment is available for sale separately by the owner in the nearby Panorama building. There is one single open space and a box with parking for 2 cars - price on application
For additional information regarding the property, including a video & virtual tour of the property, you may consult the website.
Lorenza von Stein Worldwide Realty
47, boulevard du Jardin Exotique
MC 98000 MONACO
Tel : + 377 97 97 02 77
Email
Currencies Direct Co-hosts and Sponsors the 2022 Prestige French Property & Lifestyle Show
This will be the first dedicated French Property Show since March 2020 and we look forward to showcasing the best of France. Attending the show will be Immobiliers representing some of the most popular areas of France such as Normandy, Brittany, Mayenne, Loire Atlantique, Limousin, Dordogne, Languedoc etc.
Prestige will be there as the hosts and they offer everything from property management to a marketing and reservation service for rental properties in France. Currencies Direct as co-hosts are the dedicated currency exchange company for the show and there will also be other proifessional companies such as AXA Banque, Generali Assurance, Northerncross Wealth, HCB French-Connections (Visa Specialists), Hot-Tubs in France, Escec International (Accountancy), a Mortgage Broker and Caravans in the Sun who can offer mobile homes throughout Europe. France Media (The France Show & French property Exhibitions) are the media partner for the show and they also publish French Property News and French Entrée. Link for tickets
Discover the French Riviera Like Never Before with ‘Discover’, The Real Estate Magazine from Savills
Celebrating 20 years as a leading French property agent, Savills shares a selection of lifestyle favourites from the Côte d’Azur and invites you to explore behind the scenes of a collection of Riviera homes. With everything from Michelin starred chefs, the future of Yachting and a guide to the Beach clubs of Saint-Tropez there is something for everyone.
Pick up or request your copy today and learn just what makes the French Riviera unique.
Find out more here
Blevins Franks Financial Tips - The Cost of Living Longer
The Cost of Living Longer
By Rob Kay, Senior Partner, Blevins Franks
By making the lifestyle choice to retire in France, you will want to make the most of what the country has to offer, hopefully well into the future.
This may be longer than you expect. Thanks to medical advances over the years and a better quality of life, people are generally living longer than the previous generation. French statistics show that life expectancy for males currently aged 65 is 84, while for women it’s higher at 88. Of course, these are just averages, many of us will live longer, maybe much longer– it has become more common to hear of people reaching their 100th birthday.
Living to a ripe old age does sound rather appealing, provided we are healthy enough. Much more time to watch our grandchildren grow up and much more time to enjoy our well-earned retirement in France. There are, however, implications at both personal and government levels, with the key issue being: can we afford it?
The longer we live, the longer we need our savings to last in order to live as comfortably as we are used to. For peace of mind, assess whether your resources are on track to last throughout your lifetime. Here are the key considerations.
Income and inflation
Starting with the big topic of the moment – inflation. We are getting used to headlines about rising inflation and the levels we have seen this year are certainly an eye-opener on how it can impact our monthly living costs. But even though inflation will hopefully start to come down before too long, even low levels, compounded year after year, will reduce how far a fixed income will stretch in the future.
Say, for example, you spend €5,000 a month. Assuming an inflation rate of 3% a year, in 10 years’ time you could need €6,720 a month to maintain the same spending, and €9,030 in 20 years. So your capital and income would need to grow by the same amount to maintain the same standard of living.
Making your savings and investments last
Many retirees favour low-risk, ‘safer’ investments like bank deposits in their later years. But with potentially 30 years or more to fund in retirement, this can actually be a risky strategy.
British expatriates also need to factor in exchange rate risk. If you receive income in pounds while spending euros in your daily life, depending on currency movements you may find your money does not go as far as it once did, even without the inflation factor.
By following some key investment principles and taking specialist guidance, you can invest capital to give it the opportunity to keep pace with inflation, while keeping risk to a comfortable level. Start by establishing your risk profile then carefully build a well-diversified investment portfolio to suit your circumstances, needs and objectives. Look for investment arrangements which provide some currency flexibility to try and avoid the exchange rate risk.
You could get currency flexibility through some ‘assurance-vie’ policies, a specialised form of life assurance that allows French residents to hold a range of investments in a highly tax-efficient package. There are many different assurance-vie options based in various jurisdictions, not just France, and not all offer currency flexibility, so choose carefully.
A taxing problem – not just for governments
Rising life expectancy is also expensive for governments. The higher the proportion of older people in a population, the greater the costs of services like state pensions and healthcare – and the lower the number of taxpayers that can fund it. The solution usually lies in pension or healthcare reforms and tax increases to finance these escalating expenses. The issue has been exacerbated over recent years with the amount of money governments have had to spend as a result of covid.
Higher taxation can be a considerable threat to your financial security in retirement. Just like inflation it erodes your income, and in France we have social charges on top of income tax, giving us quite a high tax burden. This is where personalised tax planning is vital to make use of available opportunities – in France, the UK, or elsewhere – to ensure you do not pay more tax than necessary.
With many of these arrangements you can combine your tax and investment planning in one exercise, allowing you to tackle the twin threats of tax and inflation at the same time.
Getting the most from your pensions
Pensions are often the key to financial security in retirement, so take care to do what is right for you. You need to consider all your options, carefully weighing the pros and cons. Look at your income needs, investment options and risk, currency risk, what happens to the balance when you die and the tax implications.
There may be ways for expatriates to make pension funds go further, but before making any decisions, take regulated advice to avoid pension scams and establish the best approach for your particular objectives and circumstances. You may be best advised to leave your pension where it is.
Leaving wealth behind
If you want to leave a lasting legacy for your family, you have to make sure you do not spend it all in your own lifetime – without compromising your quality of life today. A strategic financial planning approach – that considers estate planning alongside investing and tax planning – can prove invaluable here.
Estate planning in France is complex, with succession tax based on the beneficiary and succession law imposing forced heirship. If your family includes children from previous marriages, be particularly careful to ensure everyone benefits as you wish them to.
Whatever your stage of life, good financial planning can help you afford the lifestyle you want, for as long as you need, so you can focus on enjoying your retirement in France.
This article should not be construed as providing any personalised investment or taxation advice. You should take advice for your circumstances.
Blevins Franks Group is represented in France by the following companies: Blevins Franks Wealth Management Limited (BFWML) and Blevins Franks France SASU (BFF). BFWML is authorised and regulated by the Malta Financial Services Authority, registered number C 92917. Authorised to conduct investment services under the Investment Services Act and authorised to carry out insurance intermediary activities under the Insurance Distribution Act. Where advice is provided outside of Malta via the Insurance Distribution Directive or the Markets in Financial Instruments Directive II, the applicable regulatory system differs in some respects from that of Malta. BFWML also provides taxation advice; its tax advisers are fully qualified tax specialists. Blevins Franks France SASU (BFF), is registered with ORIAS, registered number 07 027 475, and authorised as ‘Conseil en Investissements Financiers’ and ‘Courtiers d’Assurance’ Category B (register can be consulted on www.orias.fr). Member of ANACOFI-CIF. BFF’s registered office: 1 rue Pablo Neruda, 33140 Villenave d’Ornon – RCS BX 498 800 465 APE 6622Z. Garantie Financière et Assurance de Responsabilité Civile Professionnelle conformes aux articles L 541-3 du Code Monétaire et Financier and L512-6 and 512-7 du Code des Assurances (assureur MMA). Blevins Franks Trustees Limited is authorised and regulated by the Malta Financial Services Authority for the administration of retirement schemes. This promotion has been approved and issued by BFWML.
You can find other financial advisory articles by visiting our website here
Blevins Franks Financial Tips - Is it Time to Consider Downsizing your Home?
There are various financial benefits to moving to a smaller property. With careful planning you could unlock retirement funds and potentially tax-efficient income, while still leaving your family and heirs a lasting legacy. France offers fantastic property opportunities in outstanding surroundings, so it is unsurprising that many Britons choose to retire to their own place on the Riviera.
Whether you buy your main home here or just for somewhere to holiday, property may be your biggest asset, with the potential to provide a substantial return on your initial investment over time. For many, their home is also a legacy to help secure the financial future of children and other heirs.
However, there are risks in relying on bricks and mortar for your wealth. After all, you cannot fully realise the financial benefits of a property while you are still living in it. Compared to other investments, property can also prove very costly to maintain.
Size does matter
Generally, the larger the property, the more expensive the running costs. Mortgage payments, rates, utility bills, plus building and maintenance expenses can all add up to generate a relatively high ongoing burden. If you are retired with a reduced or limited income, this can be especially draining on your resources, particularly if you own more than one property.
Affording retirement
With today’s increased life expectancy, you may need your existing wealth to stretch to ten, twenty, or even thirty plus years in retirement. Are your pensions, savings and investments on track to sustain the lifestyle you want for as long as you need? Are they structured to protect you from long-term inflation and provide the increased income you may need in the future as the cost of living rises?
Many people find themselves in an ‘asset rich, cash poor’ situation, owning considerable physical wealth such as property but with substantially less disposable income. Expatriates in particular tend to hold on to UK property in addition to their French home.
While property can be a solid investment, it locks your money away in a highly illiquid way. If you want access to your capital, you may not be able to sell easily, nor for the right price. Also, there is risk in tying your funds up in one asset class – if the value of property drops, so does your investment.
Property offers potential leveraging opportunities – such as freeing up cash through equity release if this is available – but like any debt arrangement, this comes with costs and risks. For retirees looking to shed debt and leave something behind for children and grandchildren, more borrowing is not the answer.
Benefits of reinvesting your capital
Downsizing property can help increase your accessible wealth, but it needn’t be a compromise when it comes to investment growth. By reinvesting in suitable investment funds, for example, you can still invest in real estate but alongside other assets (equities, bonds etc.) to reduce risk through diversification. And, unlike immoveable property, if you require small amounts of cash you can just sell the amount you need, not the whole investment.
A specialist adviser can help you explore investment arrangements that suit your particular circumstances, goals and risk appetite while being tax-efficient for France. You could also unlock other benefits that property cannot offer, such as a regular income and currency flexibility.
When it comes to estate planning too, there are more opportunities to reduce succession tax for your heirs on investment capital than with real estate.
Reducing taxation
Wherever your home is, charges such as stamp duty and capital gains tax generally increase with the property’s price tag. Higher-value homes can also tip you over the threshold for wealth tax, where applicable, as well as increasing the inheritance tax bill for your heirs.
In France, owning real estate assets worth over €1.3 million attracts annual wealth taxes of between 0.5% and 1.5% (over an €800,000 allowance). For French residents, this applies to worldwide real estate, including UK property. Since 2018, wealth tax no longer applies to capital investments, which is a considerable tax advantage over property.
Wealth tax rates seem relatively low, but when applied to property values this can add thousands to your tax bill. By reducing the amount of tax payable, you can make your money go further in your lifetime and maximise the value of your legacy.
Ultimately, while you want to make sure your family are looked after when you are gone, do not forget your own needs. Take personalised, cross-border advice to establish an investment and estate planning strategy that can secure a secure retirement for you in France today and a lasting legacy for future heirs.
Tax rates, scope and reliefs may change. Any statements concerning taxation are based upon our understanding of current taxation laws and practices which are subject to change. Tax information has been summarised; individuals should seek personalised advice.
Blevins Franks Group is represented in France by the following companies: Blevins Franks Wealth Management Limited (BFWML) and Blevins Franks France SASU (BFF). BFWML is authorised and regulated by the Malta Financial Services Authority, registered number C 92917. Authorised to conduct investment services under the Investment Services Act and authorised to carry out insurance intermediary activities under the Insurance Distribution Act. Where advice is provided outside of Malta via the Insurance Distribution Directive or the Markets in Financial Instruments Directive II, the applicable regulatory system differs in some respects from that of Malta. BFWML also provides taxation advice; its tax advisers are fully qualified tax specialists. Blevins Franks France SASU (BFF), is registered with ORIAS, registered number 07 027 475, and authorised as ‘Conseil en Investissements Financiers’ and ‘Courtiers d’Assurance’ Category B (register can be consulted on www.orias.fr). Member of ANACOFI-CIF. BFF’s registered office: 1 rue Pablo Neruda, 33140 Villenave d’Ornon – RCS BX 498 800 465 APE 6622Z. Garantie Financière et Assurance de Responsabilité Civile Professionnelle conformes aux articles L 541-3 du Code Monétaire et Financier and L512-6 and 512-7 du Code des Assurances (assureur MMA). Blevins Franks Trustees Limited is authorised and regulated by the Malta Financial Services Authority for the administration of retirement schemes. This promotion has been approved and issued by BFWML.
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