Foreign Perspectives

Archive for the ‘Miscellaneous’ Category

One of the questions that’s in the back of our minds at the moment is “where should we go after here?” and the answer is far from simple.

Our first complication is that since we’re selling both a business and a home at the same time and likely to be moving to another country, the synchronisation of the move will be quite complex. Consequently, our current thinking is that the bulk of our possessions will go to storage somewhere whilst we rent an interim home elsewhere. To simplify our lives tax-wise, it’s probably going to be a little easier if the interim spot isn’t in France as that’ll create a clean-ish break from the French tax system sooner than if our interim spot were in France.

With the sedate pace of French property sales, we’d have anything from three to six months from the “I’ll take it” until the cheque clears in our bank account so there should be lots of time to arrange that interim move. In fact, probably enough to skip the interim stage but synchronising a sale in France with a purchase elsewhere would be next to impossible hence the interim stage.

Where to go after that though? Whilst we’ve not yet settled on a single spot, a number of requirements are already apparent:

1. We’d like the kids to grow up english speaking;
2. We want a country that is broadly pro-business.

The first point doesn’t actually rule out non-english speaking countries as you might think as there are many countries with bilingual schools and in fact the possibility of a bilingual education would be quite a plus point for us.

We’re saying pro-business basically because we’ve experienced a broadly anti-business environment over the last four years and it makes life a lot more difficult at every stage of running a business. France is changing, but not quickly enough for us.

I’m sure that we’ll add many more requirements over the months to come!

People seem to be moving online in droves in search of holiday accommodation if the stats on my own accommodation listings sites are anything to go by.

Whilst ordinarily, I expect to have to upgrade the hosting for the collection of sites once a year, I’ve already had to upgrade it three times since Christmas such is the rush of people looking around for summer holiday accommodation. The increase in traffic from December looks like coming out around eight fold which is a major jump by any standards.

Whilst financially it’s no problem in that hosting costs have dropped like a stone in recent years, technically it’s heralding a problem that may arise this summer, somewhat ahead of my expectations. That problem is that I’ve only one more upgrade that I can do before I have to move from a shared hosting plan to a VPS hosting plan that essentially provides me with my own virtual server (actually shared by around four others).

Plus points of that upgrade are that it will give me the extra bandwidth that I’ll be needing by then and that the websites should run a lot faster but on the downside it costs about five times the price of the service that I’ll be using just prior to it.

We’ve been rolling out our marketing campaign to pull in more entries on our B&B listings sites over the last few weeks and it’s interesting to see how differently the offers have been taken up.

First off, the Spanish began with a vast number of duff addresses which implies that a lot of them don’t bother with e-mail for their bookings. Virtually all of the addresses were from free accounts like hotmail and the Spanish equivalents which also implies that they’re not really using the Internet as a primary means of promoting their businesses. Overall takeup was really low at around 0.5% although, to be fair, it’s my first attempt to do a mailshot in Spanish so I wasn’t expecting an overlly high response. What did surprise me was that they looked at the example sites I quoted in really big numbers and also clicked on the various ads that they came across.

This was my second major mailshot aimed at Scotland. The first, about a year ago had a fairly low takeup but this one completely took me by surprise and the takeup has been over 3%. By contrast, they didn’t look much at the example sites nor did they click on the ads: they just went ahead and either signed up right off or passed on the offer.

It’s my first run at Ireland too and early days with that as yet. What has surprised me already though is that a much lower number of places quote an e-mail than I’d expected. In fact, the Internet presence seems largely to be confined to B&Bs with hotels not bothering to quote either an e-mail or a website. Still, we’ll see about Ireland over the coming week.

Next up is England and Wales which I hope to do over the coming week or two. It should provide an interesting contrast with Scotland where I went from fairly low numbers a few weeks ago to quite a sizeable and growing presence today.

Whilst it’s easy enough to come up with a price for a house in a town where there are a lot of similar houses around and a regular turnover, it’s an entirely different matter in rural France.

For a start, once you get into the countryside, houses aren’t all the same. Even two similar looking cottages won’t come with the same price attached because they’ll be in different locations with different views and so on. And, of course, they’ll not be the same inside either nor will they have been equally well maintained. Finally, there just isn’t the regularity of turnover of housing in the French countryside as you get in a typical town in the UK.

So how do the French price their houses? Well, first off they look around at the various estate agent brochures that seem to be in every place you could possibily find them. The French don’t have a single estate agent selling a property usually so there are even more brochures than you might expect.

They look for vaguely similar houses to what they have to sell and take a view on whether their’s is worth more or less than the price being asked. What they don’t do usually is to ask the estate agent what the price should be and therefore the prices listed aren’t necessarily realistic. In fact, most are actually conversions from some relatively arbitrary figure in French francs with the estate agent commission being added on (hence the slightly peculiar sums that you sometimes see being asked).

So, don’t take the price in the estate agents brochure as gospel. It’s usually not based on any firm idea of what the house should be worth so you may well be able to negotiate either the price or what’s included in the price.

We’ve been looking around the prices of places locally and there’s quite a divergence between what some places are actually worth and what they might sell for at the moment.

For example, there’s a major hotel/restaurant complex near us that’s listed for almost EUR 2.5 million. It’s easily worth that as it’s a recently modernised building with over 30 rooms, large swimming pool, gardens, sports facilities, has a second building under construction to add another 30 rooms and planning permission for a third building for the complex plus extensive grounds.

Unfortunately, that complex is totally out of character with the region. There’s nothing comparable to it locally and for good reason: there just isn’t the market for it here.

So, whilst it might well be worth 2.5 million (and probably more), chances are that it’ll sell for around 1.5 million or so. That’s if it sells at all, of course, as it’s nothing like what people would expect in this area which means that nobody is looking to buy such a facility here.