We live in a period in which we are warned that the current money system no longer works and that everything will blow up. In America and Switzerland, some banks already collapse as soon as too many people want to withdraw their savings. And platforms trading in crypto go bankrupt, causing billions of bitcoins to disappear. And all that cryptocurrency has been paid for once with a euro or a dollar. Nobody knows what will happen, but there will always be a money system for housing, work and food.
Digital money or buying real estate in the South of France?
But what do we do with our money? Those days when we kept savings in a sock under the mattress are long gone. In addition, cash is less and less accepted. You sometimes almost feel like a criminal if you want to pay with a 50 euro note in a shop. Only on the fresh market and in restaurants are people happy with paper money; they save money with paper money. How does that work?
Pay in cash or digital money
Anyone who pays 50 euros in cash in a restaurant gives the owner 50 euros that he can use to pay for the launderette, also in cash. Or pay 50 euros in cash to the greengrocer. Or the window cleaner. That note of 50 always retains the value of 50 euros.
But if you pay digitally in a restaurant, you are not doing the restaurateur a good service. The restaurant pays an average of 2.5% in transaction costs, which equates to an average of 1.25 for each further payment transaction. If the restaurant paid all costs digitally, then after 36 payments of those 50 euros, only 5 euros would be left. Thanks to all digital transactions and fees, no less than 45 euros have become the bank’s property.
It is, therefore not surprising that the banks (and governments) promote the complete switch to digital money. After all, it seems easy for the consumer, but the banks earn extra money.
Savings
You now neatly deposit money into your savings account every month. And maybe you bring paper money to the bank. But your savings account balance is no more than a digital number on your screen. You can pay bills with it, preferably online.
However, if you want to withdraw cash from a money machine, you will face restrictions from your bank, such as a maximum withdrawal of 300 euros per day. Or a maximum of 1000 euros per week. And if you want to withdraw more, you must explain to the bank what you need that money for.
That, obviously, is none of the banks’ business and also feels like an invasion of privacy. Some people deal with this playfully by giving answers such as: ‘It’s my birthday and I’m looking for a gigolo’ or ‘I’m addicted to gambling, and I’m going to the casino’. But still, it doesn’t feel normal.
To invest
We see that more and more people are becoming suspicious of their banks. Who guarantees you that you can always access your savings? And if a new system is introduced later, what will be the new value? Will the euro survive if the dollar falls in value? The rise of BRICS against the US dollar will kick back into banking systems. That is why investing in real estate is a logical thought. A house of bricks survives every crisis and will only increase in value.
The real estate market in the South of France
The Cote d’Azur is not Marbella or Dubai. Apart from the difference in the type of audience, these regions are also in the real estate danger zone. Anyone who invests there now is almost sure that the value will decrease in the foreseeable future. The real estate bubble will burst someday. Except on the Cote d’Azur.
Old or new money, everyone who invests in the Cote d’Azur does so for one simple reason: the French Riviera market is always stable. It can sometimes go down a bit, but it tends to go up a bit every year. And during significant events, prices freeze. Few people have a mortgage on the accommodation in the South of France, and if it cannot be sold, it is always well rented out, even in a time of crisis. And so prices remain high and stable.
The Nice Matin of April 28, 2023, speaks of a paradox: while real estate prices are falling everywhere, they continue to rise on the Côte d’Azur.
Second home as an investment
So now is the time to invest smartly. You buy a house in the south of France and intelligently invest your savings. You can rent that property for extra rental income to make your money even more profitable.
Inquire about typical rental properties that have a proven return. Investing in new construction is also smart; no maintenance for the first ten years and low notary fees and transfer tax upon purchase. And if you let it out professionally, you can reclaim the 20% VAT from the French tax authorities.
Are you an entrepreneur looking for an intelligent construction where you convert part of the company profit into real estate in the South of France? We are happy to connect you with our expert network, the starting point being that you are protected against IFI, the French wealth tax. And your children against inheritance tax.
The time to invest in a solid future is now. Contact us at info@livingonthecotedazur.com to discuss the first steps.
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