London's Earl's Court, venue for the National Home Improvement Show

Returning for the second year to London’s Earls Court, The National Home Improvement Show (1-3 October 2010) is back, with home improvement ideas, interior design and a wide range of expert advice from the country’s leading celebrity and industry experts.

This is a chance to share the passions of celebrity experts including Michael Holmes (Real Homes editor-in-chief and presenter of ‘I Own Britain’s Best Home’), Julia Kendell (DIY SOS) and Matt James (City Gardener) in the Real Homes Live Theatre who all have returned to appear in this year’s show.

They’ll be joined by new recruit, eco expert Charlie Luxton (Build a new Life in the Country). The Real Homes Live Theatre delivers in-depth sessions on how to transform your home.

In addition to presenting the seminar sessions, our experts will be on hand for a drop-in style clinic to answer your questions. If you have a home improvement problem or dilemma to solve then you can talk one-to-one with our experts in our Ask the Experts area. Bring along your plans and see how their ideas can improve your project.

For visitors requiring a more specific or specialist advice, the Masterclass programme will be running daily sessions to address your specific problems and issues while adding space and value to your home. Hosted by leading industry specialists, topics range from how to extend without planning permission, designing an urban garden, creating beautiful interiors and how to make money by going green.

Julia Kendell has twenty years design experience and is enjoying phenomenal success in the interior design industry

For all those enthusiastic gardeners, The Fifth Room hosted by Matt James has identified that for many, the garden is an integral part of the home. Sponsored by Tendercare, this show garden demonstrates a selection of different green spaces ranging from child-friendly, garden entertaining or creating office space in your backyard.

For more information on the show, exhibitors, seminar schedules and tickets visit www.improveyourhomeshow.co.uk or call the ticket hotline on 0844 581 0802. If you’re not lucky enough to win, make sure you book in advance and save £4 on each ticket. Tickets are £8 if booked before 3pm on Friday 30 September and £12 on door.

www.homesandtravel.co.uk has two free tickets for each of the first hundred respondents to go on line at: http://www.improveyourhomeshow.co.uk/homesandtravel

Michael Holmes, Real Homes Magazine editor-in-chief

Spokesperson for The National Home Improvement Show, Michael Holmes, presenter of Channel 5′s, I Own Britain’s Best Home provides readers with ten different ways to reduce their renovation costs

1. Invest in a good design

Effective design takes time and costs money and consequently far too many people set out on a renovation project without really planning exactly what they want, or getting accurate drawings. This is undoubtedly a false economy. A project can easily snowball once it starts. A more efficient approach is to spend a little more time and money working through all your options at the outset.

2. Cash is king

Offering to pay in cash shows that you mean business. It can work wonders when negotiating the cost of a job with a builder or subcontractor, or when trying to get a tradesperson to turn up on-site at short notice. Cash can also help to secure a discount when buying second-hand items such as salvaged materials or when buying in person. Be careful, as you’ll need to get some sort of receipt or paperwork so you have proof of payment.

3. Avoid false economies

Getting ripped off by cowboys can increase costs dramatically, so get references and check contractors out in person. This can apply as much to designers as it does to builders.

4. Keep it simple

The simpler the design of an extension, the cheaper it will be to build. A straight wall is the cheapest form and once you start introducing corners and complicated shapes, you will increase labour and materials.

5. Measure twice, cut once

Getting material quantities right is critical. Having too much creates unnecessary waste, while having too little can mean having to pay another full delivery charge for a tiny order. Worse still, the extra materials you order may take a long time to come, delaying your project, and could be from a different batch. Always ask suppliers to help you establish quantities from your plan and specifications including an allowance for wastage. Additionally ask your tradespeople for their independent view.

6. Shop around and negotiate

To get the best prices from suppliers, you need to negotiate every times you place an order and compare prices from lots of different suppliers.

7. Borrow cost effectively

If you need to borrow money to fund your home improvement project, shop around. A personal loan is likely to be the easiest and most flexible way to borrow. Though if you have the equity in your home to justify increasing your mortgage, this can be even better. The limiting factor will be having sufficient income and enough value in your home to offer as security to meet lenders’ criteria,

For larger projects, it’s worth establishing credit accounts with builder’s merchants. Additionally, make sure you look into VAT savings.

8. Use standard size fittings

Everything from windows and doors to staircases and shower trays come in standard sizes that are available off the shelf. So to save money, make sure you design your project around these sizes. If you use all or mostly all standard sizes, you will find many of the big manufacturers have a product that will fit. This means you can easily shop around for the best prices and take advantage of the various bargain deals on offer in this climate.

9. Phase the whole project

If your ambitions are bigger than your budget, plan your project in stages. For instance, if you want an extension on a budget, you could buy the whole exterior, but only complete the interiors on the ground floor and leave the first floor or loft space to be finished later. The key is to get services such as wiring and plumbing in place before plaster or decorative finishes have been added.

10. Go back to brick

If you are completely renovating an old flat or house, which has been empty for some time, it can be more cost effective to gut the place and start again from a shell rather than try to solve patches of damp and rip out the old wiring and plumbing. It is all but impossible to really solve damp any other way and you never get a great finish patching up badly damaged plaster on walls and ceilings.

The National Home Improvement Show will take place at Earls Court, London from 1 – 3 October 2010. For more information about exhibitors, seminar schedules and tickets visit www.improveyourhomeshow.co.uk or call the ticket hotline on 0844 545 0084. Tickets are £12 on door.

Peter Esders

Recent changes in the Furnished Holiday Lettings rules have brought rental properties both in the UK and abroad to the forefront of people’s minds. Solicitor Peter Esders of Chebsey & Co explains how this can affect property owners

Effectively, these changes mean that there will be less tax breaks on Furnished Holiday Lettings (whether in the UK or abroad) and some of the criteria have been tightened up.

There are many people who own foreign property and rent them out. In my experience these people generally fall into two different categories. The first is the pure investor. They buy property purely for profit in terms of both Capital Gains and also income.

The second is the sort of person who would buy their first ‘second home’ abroad for their own personal use but then decide that they could offset some of the cost by renting it out. I can understand the second type of buyer getting confused about their tax obligations when they rent out a property abroad but there really is no excuse for the first type of investor not fully understanding the situation before they buy.

Paradise? Yes, but if other people rent your home in the sun, don't forget to tell the tax man

Having said that, it is amazing how many people either have selective amnesia or selective understanding when it comes to foreign rental property. I often see people who try and play one country off against each other. When they are abroad, they say things like: “I live in England and therefore don’t have to pay tax here,” whereas back home they say things like: “The property is abroad so I don’t have to pay tax here.”

They may be able to fool themselves that this is the case. They may also fool the people that they tell, but the tax authorities won’t listen to this sort of argument.

The situation does vary slightly depending on which country or countries you are talking about but overall the rules are basically the same.

• If you rent out a property in another country then you should be declaring that income in that other country and paying tax on it in that country.
• You should also declare the income in the country where you are tax resident (generally where you are living) and pay tax in that country as well.

“That doesn’t seem fair,” I hear you say. No, it isn’t – hence that’s why double taxation treaties exist. Basically, different countries have agreements whereby you can generally offset the tax paid in one country against the tax due in the other so that you only pay any extra amount due rather than the whole amount again. The tax treaties do work in slightly different ways so it is important to understand what the impact will be before buying.

So what happens if, for example, you have a Spanish property and only rent it out to English people and receive the money in England. Well, you have still received an income from the property and therefore should declare the income in Spain (and in England). Of course some people in such a situation would conveniently forget to tell the taxman in Spain.

Honesty is still the cheapest policy when it comes to renting your home

They are the same sorts of people who are surprised when the tax authorities send them the price list and availability information downloaded from their own website and ask for the tax on the weeks that they have told the world that they have already rented the property for!

Then the authorities want to go back several years and charge fines and interest and these people feel hard done by. Put simply it is just not worth it – even if it does mean that you have to pay some tax.

Luckily it is not all bad news. If you arrange your affairs properly when you buy and take advice you can make significant legal savings in tax, but it is vital that you take this advice before you buy as otherwise some of the options may not be available to you. As ever it often means paying out some money to save even more money in the future.

Peter Esders is a solicitor at Chebsey & Co and can be contacted on tel: 01494 670440  Fax; 01494 670276  Email: pje@chebsey.com Web: www.chebsey.com

Mallorca is home to fabulous properties and the Global Ocean Race

Already renowned as a luxury location favoured by the yachting and sailing communities with classy restaurants, gorgeous properties and, of course, the magical Mediterranean, Mallorca has just been named as the start and finish of the Global Ocean Race 2011-12.

With over twenty entries from at least eleven nations it puts the Island on a new international stage. Although many boating enthusiasts are attracted by the facilities, many more stay for the beautiful climate, excellent food and luxury premium property close to the marinas.

Now, the Great Race announcement looks set to start another race in property as rental prospects surrounding the event begin to climb and Mallorca is firmly back in holiday home purchaser’s sights. Visitors will be clamouring to stay close to the Spanish Island’s shoreline in locations including Puerto Portals.

Mallorca is particularly proud of it coastline and puts a great deal of effort into maintaining and improving its beaches and marinas. This year eighteen marinas have been awarded a Blue Flag, one more than last year. Spain as a whole has been given more awards than any other nation with a total of 605 and according to the Association for Environmental Education the Balearic Islands have secured the largest increase this year across the whole country with eighty-five in total.

Mild winter climate

There are many popular leisure activities on offer in the area of Puerto Portals such as scuba diving, water-skiing and of course sailing, all of which are year-round hobbies in Mallorca with its mild winter climate. For those who prefer to keep their feet on terra firma there are also activities such as beach volleyball and cycling.

The traditional Spanish celebrations throughout the year are events not to be missed, when locals and visitors alike all come together on prominent religious dates in the Baleares and across Spain.

The increasing attention that Mallorca is receiving has pushed up visitor numbers markedly throughout the years. In 1960, the island received 500,000 visitors but by 1997 this had increased to 6.7 million.

Today, around 23 million passengers pass through Palma de Mallorca Airport each year with an additional one and a half million arriving by sea. With such a demand on the island, more than half of the population works in the tourist sector, accounting for approximately eighty per cent of the Mallorca’s GDP.

Mallorca’s property market

The tourism sector will put huge efforts into the opening and closing ceremonies for the Great Ocean Race in Mallorca. With support from Government bodies and corporate partners, the build-up to the start and finish of the race will be spectacular.

The island is highly regarded in the world of water sports and already hosts premium yacht racing events such as the Copa del Rey, the Palma Velas as well as the Superyacht Cup. It has high-quality marine services, great sailing conditions, stunning scenery, a rich maritime history and a lively onshore scene.

More and more people are choosing to enjoy life in the Balearic island of Mallorca

Taylor Wimpey, which has over fifty years of property development experience in Mallorca, has just completed a new residential complex close to the marina in Puerto Portals. Victor Sague, the sales and marketing director says: “The local area is already noted for being fashionable and desirable for boat owners and beach lovers alike.

“News of the Great Ocean Race will only increase demand for this attractive location. With one year to go until the race begins, savvy buyers have the opportunity to purchase a holiday home.

“Mallorca’s property market has not been affected by the recession in comparison with some regions in mainland Spain mainly due to the lack of stock available compared to the demand for homes on the island. Spain as a whole is a very fragmented market and good locations and quality property will always sell well whatever the market conditions. International events just add to their appeal.”

Portals, Puerto Portals, Mallorca

This new residential complex consists of seven spacious 3-bedroom properties of approximately 143 m2 with 34 m2 terraces. The complex has private underground parking spaces, lush communal gardens and a communal swimming pool.

The ground floor properties have a private patio area and the rest have spacious terraces. The properties provide fully equipped and furnished kitchens and the Royal Bendinat Golf, whose president is King Juan Carlos I of Spain is close by.

Taylor Wimpey de España’s luxury apartment complex is connected by road to Palma de Mallorca by the Ma-1 motorway and is only 15 minutes drive away. It is also close to the Son Sant Joan international airport, with excellent connections to UK and most European cities. These properties are available now from €600,000.

Contact Taylor Wimpey España today on 08000 121 020 or visit www.taylorwimpeyspain.com for more information.

In thirty years time, the kitchen will be so technologically advanced that it will almost be alive, responding actively to our needs like only a mother could. To reflect this IKEA has created an image of the future kitchen – INTUITIV.

In thirty years time, the kitchen will be so technologically advanced that it will almost be alive, responding actively to our needs like only a mother could. To reflect this IKEA has created an image of the future kitchen – INTUITIV

As you walk into the INTUITIV kitchen of the future, LED light projections adjust to your mood – it will know if you have a hangover via sensors that will read your brainwaves. Aromatherapy infused walls will be synced to your calendar, calming you before a big meeting or energising you before a gym session. The fridge will have selected some breakfast options, identifying the essential vitamins for your day via sensors. When you get home, a ‘hologrammed’ chef will be on hand for recipe inspiration.

“The INTUITIV kitchen is a possible kitchen of the future with over one third of the UK population (41%) expecting that by 2040 we won’t even have to cook for ourselves,” says Carole Reddish, deputy managing director of IKEA UK & Ireland. “Two more possible future kitchen scenarios are the ELEMENTARA, a kitchen which sees a return to nature, and SKARP, with seamless smart technology.”

ELEMENTARA – The Back to Nature Kitchen

this is a kitchen

The ELEMENTARA kitchen will encourage you to grow your own food and be self-sufficient with a garden or mini allotment as a standard extension of the room. Food will be kept cool through cold larders and recycling facilities will be seamlessly incorporated into the kitchen.

Over two thirds of UK consumers (67%) try to buy energy efficient appliances suggesting that ‘green awareness’ is on the rise. IKEA already has products such as the RINGSKAR taps with a flow control function to avoid water waste and the RATIONELL recycling bins which help make household recycling easier.

The ELEMENTARA kitchen suggests that we will be going back to basics, making the most of natural physics rather than technology and avoiding energy consumption where possible. This is a core design principle at IKEA with products such as the oven hood extractor fans which can go in the dishwasher (a clean fan is much more energy efficient than a dirty one), the PS RESKEN bench which is composed of just three pieces of wood with no nails or screws (your weight simply locks the construction when you sit on it) and the PS BRUSE coffee table that looks solid but actually has hollow legs (to reduce the amount of wood used.) All IKEA appliances are also Energy class A rated.

SKARP – The Smart Kitchen

"Over half of us (57%) think that technology will boost our kitchen experience"

This kitchen will be intelligent, predicting its inhabitants’ needs with smart technology. Synchronized appliances will make everything happen at the touch of a button, communicating through iPad-style devices which will act as the brain of the kitchen, making our lives easier.

For the one third of Brits (41%) who expect that by 2040 they will no longer need to clean, their dreams are set to come true with smart surfaces creating self-cleaning kitchens.

SKARP will also encourage energy efficient behaviour with devices like phone-apps which control our carbon emissions and thermostats which respond to our voices and fingerprints.

“With the majority of us spending the total of nearly a month in the kitchen over one year, it is the heart of the home,” explains Carole Reddish. “We think that the economy, social changes, concerns for our health and especially the environment will greatly influence kitchen design in the future.

About the project

*The Future Laboratory and the Future Kitchen report

This research was commissioned by IKEA and carried out by The Future Laboratory in June 2010. A combination of quantitative and qualitative research and analysis underpins the report, spanning extensive desk and visual research, a consumer survey and expert interviews to expand on key themes. The survey polled the opinion of 1,895 respondents aged from 18 to 65+ years old living in the United Kingdom, including Wales, Scotland and Northern Ireland.

• Slower rate of recovery for Europe and US markets in the face of testing economic conditions

• Rebound in millionaire population – high net worth individuals (HNWI) numbers are rising fastest in the Far East with Singapore, Malaysia and China all recording growth of 35%, 33% and 31% respectively

• Monaco remains the most expensive area for resale property at €45,000 per sq/m with St Jean Cap Ferrat coming second at €32,500 per sq/m and London coming third at €22,500 per sq/m

• Hong Kong, New York and London topping the new home sale prices per sq/m at €19,500, €16,750 and €16,500 respectively

A lakeside residence at Geneva, Switzerland

Andrew Hawkins, Chesterton Humberts Head of International, comments: “Disparities in the performance of global residential markets remain apparent in the post-recession era.  The star performers are in the Asia Pacific region while recovery in Europe and North America is more laboured with transaction volumes remaining well below pre-recession levels.

“Outside the Asia Pacific region, it is the prime segments which have in most cases recovered first.  This reflects the combination of a smaller supply of available properties and the greater purchasing power of HNWIs, who are seeking desirable properties still selling at a discount to pre-recession levels.

“Appetite for prime residential property both for lifestyle and investment reasons remains firm although buyers are generally taking longer to commit to purchase decisions than in the pre-recession market.  Statistics from Primelocation confirm a healthy increase in buyer interest for high-end properties: searches for international property on their website rose by 109% between May 2009 and May 2010.

“Prime property is serving its time-honoured role as a refuge in times of international upheaval and uncertainty in currency markets this year has motivated some buyers, particularly those in US dollar-based currencies, who have benefitted from the strengthening US dollar.

An eight bedroom house on the Bay of Cannes

“Recent research indicating that the high net worth individual (HNWI) population is rebounding strongly, having risen by 14% in 2009 with collective wealth growing by 11.5% according to the Boston Consulting Group, is good news for the international second homes’ market.  The number of millionaires is rising fastest in the Far East, while Switzerland has the highest concentration of millionaire households and the USA has the overall highest number of millionaire households.

“Analysis of the quarterly prime international residential property values for Quarter 2: 2010, reveals that resale property values were highest per square metre in Monaco, St Jean Cap Ferrat and London at €45,000, €32,500 and €22,500. New build property values were more expensive per square metre then resale homes in Hong Kong, New York and London at €19,500, €16,750 and €16,500 respectively.” [1]

For more information, go on-line at: www.chestertonhumberts.com

[1].Chesterton local offices plus an Internet survey of other agents’ websites

Tamarisk is a gated development of just 21 two-bedroom apartments by MJH Executive Homes

Driving along the South Coast, it’s easy to miss the seaside villages tucked away off the main road – and this is certainly the case with East Preston in West Sussex. Located just over 17 miles from Brighton and Chichester town centres and less than six miles from Worthing and Littlehampton.

East Preston has sufficient shops, cafés, pubs and restaurants to meet everyday needs and it’s a great place to relax – perfect for anyone looking for a new home or a weekend retreat. There’s sailing – with a dinghy club based on a stretch of the beach – and tennis at the local lawn tennis club. Other social and sporting opportunities for all ages range from badminton and bowling to football and the WI!

Follow the signs to Tamarisk in East Preston and another surprise awaits you. Tamarisk is a beautifully designed, gated development of just 21, two-bedroom apartments in the heart of the village. Each apartment features a high quality specification from MJH Executive Homes.

Several of the designer kitchens have glass block walling providing plenty of natural light and each is fitted with a full range of integrated appliances. Bathrooms include waterfall taps and Porcelanosa tiling and many of the properties have a terrace or balcony to make the most of the sea air and warmer weather.

Prices at Tamarisk currently start from just £224,950 for a two-bedroom apartment which represents excellent value for money, particularly when you consider the cost of similar properties in nearby Brighton. Road links are excellent and there’s a railway station at nearby Angmering, which makes commuting easy.

Whether you’re looking for a new place to live or a weekend and holiday retreat, Tamarisk hold the key. Call selling agents Graham Butt on 01903 772345 or visit the website www.mjh-homes.co.uk/tamarisk for more information.

Secure homes in North Wiltshire

Squires Court is set in what was once part of the grounds of Westrop House, a nineteenth-century manor built by Squire William Cowdy

Highworth, a small but bustling market town with a charming market square, an unspoilt atmosphere and a rich sense of history, is located in North Wiltshire, close to the Oxfordshire and Gloucestershire borders. Faringdon and Lechlade are within easy reach, Swindon is less than eight miles away and Cirencester approximately 15 miles away.

The town offers excellent shopping facilities, a weekly market, plenty of places to eat and drink, a library, sports facilities, an arts centre, golf and bowls clubs and even a choral society. Junction 15 of the M4 is only about eight miles away and from Swindon Central Station you can reach London Paddington in less than an hour.

The Archstone sales team expected a good response to the launch of Squires Court but the new over 55s development proved even more popular than anticipated. Two new homes have been sold and a further two reservations have already been taken.

Location and style have both played a part in this sales success. Set within attractive landscaped gardens, Squires Court is located in Oak Drive just minutes from the charming traditional high street and is also around the corner from the beautiful fifteenth-century church of St Michael, just one of Highworth’s historical treasures.

In keeping with the history-steeped atmosphere of the area, Squires Court is set in what was once part of the grounds of Westrop House, a nineteenth-century manor built by Squire William Cowdy. With nine, two- and three-bedroom cottages and four, two-bedroom apartments, Squires Court is small enough to provide a sense of ‘exclusivity’ but large enough to generate a real sense of community.

These new homes are fitted with high quality fixtures and fittings. They offer excellent value for money, with the apartments starting from just £264,950 and the cottages from £389,950.

One of the benefits of living at Squires Court is that there’s an estate manager on hand to deal with the day-to-day administration of the development, organise the gardening and maintenance of the communal areas and generally to be on hand to offer help and advice when needed.

For further information, call 07771 980312 or visit the website on www.archstone.co.uk.

Look to America’s heartland for a high yielding property investment

With Sterling’s value increasing to a five month high against the US Dollar and the numbers seeking rental accommodation rising due to continuing foreclosures, it would seem that the window of opportunity to invest in the US remains very much open.

Savvy investors are now looking for the next buy-to-let hotspot and it is to Heartland America that attention is turning. The mid-western states of Missouri and Ohio, home to the growing cities of St Louis, Kansas City, Toledo and Columbus, present a highly appealing investment environment with sustained demand for rental accommodation generated by the large employment base and detached family homes available at up to half below replacement build costs.

A home on Somerset Street, Toledo

Steven Worboys, MD of US property investment experts, Experience International, comments: “There is huge demand for rental accommodation from working families in the mid-western cities such as St Louis and Toledo. Up to 50% of residents in St Louis rent their homes with the majority seeking detached family homes. Property prices in these cities are well below the national median of $182,600 (Zillow.com) and owners can expect rental incomes of up to 12.5% in addition to capital gain.”

Combined, these cities hold a population in excess of six million and have weathered the economic storm better than many other higher profile cities. According to the U.S. Department of Labor, Kansas City has held a lower unemployment rate than the national rate with the healthcare and service industries replacing most jobs lost in the manufacturing sector and Columbus has been ranked the nation’s sixth most stable market by Standard & Poor’s as well as one of the 10 safest real estate markets in the US by the PMI Institute.

Data from the National Association of Realtors (NAR) revealed that property prices in St Louis for Q1 2010 were higher than the previous 12 months with appreciation at 15.1%, Toledo showed 13.3% appreciation, Columbus 6.3% and Kansas City 3.2% over the same period.

Worboys continues: “Many believe that the entire US was affected to the same extent by the recession but this is simply not the case. Indeed some states saw significant unemployment and as a consequence thousands of foreclosed properties but many states such as those in the Heartland due to diverse employment sectors avoided worst case scenarios and now as the economy shows continued albeit slow growth these cities are the first to recover.”

It is this recovery that shrewd international investors are keen to capitalise on. With three bedroom detached family homes available from as little as $24,500 (with 50% LTV finance) entry into the Toledo property market for example requires low cash outlay. Fully refurbished properties in sought after areas can expect to generate up to $860 per month and are sold with tenants already in place on long-term leases. One year’s home maintenance is also included and investors can take advantage of exclusive finance packages available.

To find out more about investing in property in Heartland America then contact Experience International on + 44 (0) 207 321 5858 or visit www.experience-international.co.uk.

UK investors offered opportunity to help USA underprivileged and make a profit

UK based property investment firm Assetz plc is offering British investors a chance to buy four and five-bedroom homes in America’s motor city of Detroit to rent to low income families and with a guaranteed return of more than 20%.

The USA government backed scheme ensures investor’s properties are protected as tenants are bound to look after them as if they were their own or face ejection from the scheme forever. The entry level is $50,000 for a four or five bedroom executive detached house (around £32,500), a quarter of what these properties were valued at around $200,000 four years ago, offering gross yields of 23%.

Michigan Four bedroom, two bathroom house over 1,700 sq ft in Detroit, Michigan. Priced at approximately £30,650. Contact Assetz USA

Properties are backed by the US department of Housing and Urban Development (HUD), helping to increase investor confidence and maintain a strong demand for these properties – there are already over 9,000 people waiting to be housed in the metropolitan area of Detroit.

Martin Sadler, Sales Manager of Assetz International, comments:
“This scheme represents a superb return on investment for a minimal cash outlay. You won’t find such an attractive investment opportunity anywhere in Europe at the moment. The scheme has clear, indispensable benefits to families and the community at large, providing quality, affordable accommodation to the 9,000-plus people currently waiting for housing in Detroit. It is even environmentally conscious, putting empty, foreclosed property back into use.

“We undertake the refurbishment of the properties, and our partners in Detroit manage them very closely. This involves a government inspection every year to ensure the property is being looked after. In addition our management company inspects each property every quarter. The strict regulations for occupancy safeguard against any unruly tenant behaviour, offering purchasers a well-maintained investment vehicle.”

• Why Detroit? Largest city in the state of Michigan
• Population of 5.4m
• 240,000 businesses located in this region
• Huge demand – over 9,000 tenants waiting for a home
• Expected capital growth on property of 21.5% over next 12 months
• Ethical investment – helping underprivileged families to live in a safe and stable community

Key facts

• 4-5 bedroom detached homes from $50,000 (around £32,500)
• Gross rent per annum $11,400
• Gross yields over 23.6%
• Following refurbishment value of property increases by at least 100%
• Hands-off investments – fully managed with inspections and reports
• Exit strategies in place – either by sale to tenant or sale onto open market when recovery takes off
• After 12 months refinance available or via equity withdrawal

For further information contact Assetz USA on 0845 430 0010 or email usa@assetz.co.uk

By Bill Blevins, Managing Director, Blevins Franks

France has one tax that Britons are generally not familiar with – wealth tax. It is an annual tax on the worldwide assets of French residents as at 1 January in any French tax year, although there are reductions available on how much you actually pay. When you first move to France from the UK, you will only be liable for wealth tax for five years on French assets, and not global assets.

Providing you have been non-resident in France for the five previous years of your arrival after 6 August 2008, you will enjoy freedom from wealth tax on your non-French assets effective from the 1 January in the year following the year of your arrival. If you arrive after 1 January in any year, because France ‘splits’ the tax year into period of residence and non-residence, as you were not resident on 1 January in that year, you will only be subject to French wealth tax on your French assets (if any) in the year you arrive.

Owning a home in France involves tax liabilities

The UK/France Double Tax Treaty also provides for a five year exemption from wealth tax on non-French assets after becoming resident there. It is only in the sixth year of residence when you are liable for wealth tax on worldwide assets. If you should leave France and become a non-French tax resident for a period of at least three years, and then return and take up tax residence again, then the five-year exemption will start once more.

The wealth of the household

Those who own a second home in France, and who will remain French non-resident, are liable to wealth tax on net assets in France, including the value of shares in a property owning company known as an SCI. However, loans to the individual (or the SCI) specifically attached to the French assets may be deductible against the asset value to reduce the wealth tax calculation.

Non-residents are liable to wealth tax on any property or any rights over property situated in France, whether held directly or indirectly and including shares or interests in unquoted companies whose seat of management is situated outside France and where more than 50% of the assets comprise property in France.

Wealth tax is known as ISF (Impot de Solidarité sur la Fortune). The tax is based on the wealth of the household, including spouse and infant children. There is a €150 deduction for each dependent child below the age of 18, or invalid person. Unmarried couples living together are treated as one household for wealth tax purposes.

The wealth tax rates for 2010 are:

85% wealth tax restriction

Your total wealth tax plus income tax, plus social charges cannot exceed 85% of your income (‘net revenues’) providing your net wealth is equal to or less than the upper limit of the third wealth tax band (i.e. €2,530,000 for 2010). It is not necessarily just taxable income though, and will include for this purpose many exempt or relieved items.

If your wealth exceeds the limit above (i.e. €2,530,000 for 2010), the reduction is limited to 50% of the full wealth tax subject to a minimum wealth tax being payable of the cumulative tax due at the upper limit of the third wealth tax band (€12,050 for 2010).

50% restriction with Bouclier Fiscal

For French residents, combined French income tax, wealth tax, social charges (CSG, CRDS and PS) and local property taxes connected to the main residence cannot exceed 50% of your total income for the previous year. This provision is known as the Bouclier Fiscal.

Where the relevant taxes exceed 50%, you will have to claim a refund of the excess taxes paid in respect of excess tax paid in the previous year. There is no maximum limit to the amount of refund that can be claimed.

For 2010, you would take into account:

- Income tax for 2008 paid in 2008 at the fixed rates and 2009 by reference to the 2009 tax return (for 2008 income taxed at the scale rates)

- Social charges on 2008 income

- 2008 capital gains tax

- 2009 wealth tax

- 2009 local taxes on the main home (taxe d’habitation and taxe foncières)

If they exceed the 50% limit, a refund will need to be claimed. The refund can be claimed from 1 January and before 31 December 2010. The 85% restriction still remains in force although in most cases this will be less advantageous than the 50% restriction. Nevertheless, where the 85% restriction applies, this is calculated on the individual’s tax return, so the taxpayer does not pay over the excess taxes over 85%.

Assets assessed and exemptions

The lifestyle in France is still attracting many British residents

Assets taken into account for wealth tax include real estate, vehicles, debts due to you, furniture (except antiques), horses, jewellery, shares, bonds, redemption value of any life assurance and endowments. Assets exempt from wealth tax cover those necessary to a business conducted by its owner or his spouse, pictures, tapestries, statues, sculptures, lithographs; antiques over 100 years.

Funds in a pension fund are usually exempt, as are annuities constituted in respect of an employment or business (subject to certain conditions) and portfolio investments such as bonds, cash deposits, and shareholdings of less than 10% in French companies held by non-residents.

The fair market value of an occupied main home can be reduced by 30% for wealth tax. The fair market value is the price the property could be expected to sell for on the open market as at 1 January of the year in question. A mortgage will reduce the assessable value for wealth tax purposes only if it is secured against the property.

Filing Returns

Wealth tax returns must be filed by 16 June for French residents, 15 July for residents of other EU countries (including Monaco) and 1 September for residents of countries outside the EU. Payment in full of the wealth tax must also be made by the due date.

There is a specialised life assurance structure available called an Assurance Vie which may reduce your wealth tax liability. It is advisable to speak with a tax and wealth management specialist who is experienced in UK and French tax systems, preferably before you move to France.

The tax treatment(s) detailed above is current at the time of writing although the tax treatment outlined may change in the future.

Contact details: To contact Blevins Franks for additional information go to www.blevinsfranks.com or call them on 0044 (0)20 7336 1116 or email taxadvisoryservices@blevinsfranks.com

The environmentally-friendly properties at La Reserve in Avenue d'Albigny, Annecy

Bespoke new homes planned for an historic lakeside town in the Haute-Savoie region of France will be a showcase for environmentally-friendly development. That is the claim of of one of France’s leading Alpine developer, MGM, which has just started work on exclusive new luxury apartments at La Reserve in the historic and picturesque lakeside town of Annecy.

Comprising two, three-storey buildings together containing 17, one- to three-bedroom apartments in the residential area fronting Annecy’s prestigious Avenue d’Albigny – dubbed ‘the Champs Élysées of Annecy,’ it is said to be the town’s ‘most enviable address’ – La Reserve follows the success of MGM’s first three developments in the area.

Contemporary external and internal design

In the latest scheme – La Villa d’Artagnan – all but one of the 18 homes ranging from one-bedroom apartments to a four-bedroom duplex have been sold but MGM is retaining its show apartment so that off-plan buyers at La Reserve can see the variety and calibre of the finishes available.

Says Richard Deans, sales consultant in MGM’s London office: “La Reserve, which features a contemporary external and internal design, is highly unusual as buyers can choose from a huge variety of kitchens, bathrooms, doors, tiles and other finishes to personalise their bespoke home.” All the properties will have spacious balconies or terraces, many with views of the lake and mountains.

“MGM has pledged to design and build homes which respect and help to conserve the environment and natural resources,” says Richard. “Those planned at La Reserve will be a showcase for environmentally-friendly development.”

Lake Annecy is located in the Haute Savoie regioin of France

This project has features that range from geothermic under-floor heating to the use of water-based products in place of conventional solvent-based ones. In many case MGM has opted for building materials that can be recycled in the longer term.

Prices of the apartments at La Reserve, which will be ready for occupation in the summer of 2011, start at €560,000 for a two-bedroom apartment of 64 square feet. Investors could expect to achieve a monthly rental income for a two-bedroom apartment of in the region of €1,600 to €1,700 during the ski season and summer months, says Richard Deans.

For full details of La Reserve call 0207 4940706 or visit the website: www.mgm-constructeur.com

The flagship development by The Resort Group Plc follows the success of the group’s first scheme on the island, the nearby Tortuga Beach Resort and Spa in which all but a handful of the 372 properties have been sold, most of them off-plan. The Tortuga Beach Resort and Spa will be fully operational in 2011.

The new pedestrianised Dunas Beach Resort and Spa will comprise a mix of 1,133 fully-furnished villas, apartments, studios and hotel suites set among landscaped gardens and footpaths within a secure gated community. Off-plan buyers of the properties at Dunas Beach range from investors seeking capital growth and rental income to others wanting a holiday home in the sun.

Sol Meliã will handle the management and letting of the privately-owned properties in the resort where facilities will include five bars, four restaurants, tennis courts, a gymnasium, pools and a Meliã Spa offering a range of treatments. A wedding pavilion, the island’s biggest conference centre seating 400 delegates and a medical centre are included in the plans as well as food and gift shops and a children’s club and crèche.

Alongside the resort, other developments include the first of four new 18-hole golf courses. Also in hand are plans for a 360-berth marina close to Dunas Beach Resort.

Sal Island's beautiful beaches are hardly crowded!

Dunas Beach has already has proved popular with strong pre-sales achieved despite the tough economic conditions, with investors purchasing 75 per cent of the properties off-plan to date. They were attracted by the assurance of a sustained rental income and strong capital growth. In addition to cash investors, many have opted to buy through a SIPP (Self Invested Personal Pension).

Designed by Malaga-based architectural practice HCP, which drew up the master plan for the Dunas Beach resort, the properties combine traditional Mediterranean-style exteriors with contemporary interiors designed for indoor/outdoor living. All the air-conditioned properties can be supplied fully-furnished and equipped.

Prices freehold properties vary with size and location within the resort. Current prices start at €139,950 for a studio rising to €449,950 for a three-bedroom villa. (The seven single-storey detached five-bedroom, four-bathroom beachfront villas priced at €799,950 have been sold).

The Resort Group’s investment projections:

The Resort Group’s investment projections are based on sound research and analysis undertaken for the group by Savills which, in 2007, provided data and intelligence backed by research into land values and rentals on Cape Verde’s Sal island compared with the rest of the global market.

Says The Resort Group’s marketing director Adam Ellis: “The research showed that, although the global average for occupancy of rented resort properties was 68 per cent, the average for Sal is 80 per cent with the highest occupancy rates on the island reaching 95 per cent. Despite the recent recession there has been little change in these figures.”

Rental yields based on these figures range from a conservative 9.4 per cent to 13.1 per cent on a one bedroom apartment, but go as high as 22 per cent on a Presidential hotel suite based on occupancy of 95 per cent (the current best-on-island occupancy rate).

“On the basis of these rental returns, and the on-going tourist development of the Cape Verde islands, we expect investors who buy properties at Dunas Beach Resort could achieve an annual capital growth of six to 12 per cent for the next five years,” says Adam.

The figures are supported by market intelligence available from international tour operators and the Cape Verde Government’s growth figures. The Cape Verdean economy should grow between four and five per cent this year, according to the head of the bank Banco de Cabo Verde.

Dunas Beach Resort and Spa

Cape Verde is tipped to see a big increase in tourism following the launch of a new inter-island ferry service. Figures recently released by the National Statistics Institute (INE) show an increase in visitor numbers of 5.5 per cent in the first quarter of 2010 compared with the same period in 2009.

Cape Verde Fact File

Location

Cape Verde – the Atlantic island group 450 km off West Africa, midway between Portugal and Brazil – is located 1,000 km south-west of the Canary Islands and is on the same latitude as Barbados. These are the closest tropical islands to the UK within five and a half hours flying time. Local time in Cape Verde is one hour behind GMT in winter and two hours behind BST in summer. The location and climate of Cape Verde has prompted the description of the islands as ‘the Caribbean without the jetlag.

Cape Verde comprises ten islands, nine of which are inhabited (population 506,000). In the forefront of those attracting tourists and developers are Sal, Santiago, Boa Vista and Maio. Their landscapes range from ‘lunar’ to lush and from white sandy beaches to verdant mountains.

Economy

Economic stability is underlined by the way in which the local currency – the Cape Verde Escudo – benefits from a fixed exchange rate with the Euro (110 Esc = €1). The Euro is accepted in many hotels, restaurants and elsewhere in Cape Verde.

Language

Portuguese is the archipelago’s official language but English is widely spoken.

Climate

Cape Verde’s ‘all-year summer’ climate is tropical and dry with no hurricanes. Winter temperatures are ten degrees warmer than those of the Canary Islands. Sunshine averages ten to 12 hours a day and the usual temperature is around 25°C. There is minimal rainfall (about 260 mm) between August and October.

Getting there

Dunas Beach Resort is located 20 minutes by road from the airport on the island of Sal. From the UK there are weekly direct flights to Sal from Birmingham, Manchester and Gatwick. Flying time is around five and a half hours. Alternatively travellers can fly at other times from other UK airports by changing planes in European centres including Lisbon, Madrid, Amsterdam and Paris. Transport between the islands is available by air and catamaran services.

For more details, contact Property Investor Partnership: 01603 268083, or visit www.dunasbeachresort.com