| Million
Not Enough For Monaco Property |
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| October 2006 |
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| Prices for property in
Monaco could rise steeply in the next couple of years, and Europe's favourite
tax haven could be out of reach for some millionaires, according to a Monte
Carlo travel guide. |
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| Different recent surveys have all
been good indicators for Monaco, with more people likely to apply for residency
and buy property in Monaco. |
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| Buyers from the UK in particular
are expected to rise in number. |
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| Commenting on the findings, travel
guide for Monaco www.yourmonaco.com
say 'While we would like perhaps to imagine that it's the fine cuisine
and good weather in Monaco that is attracting the British to Monaco, we
know realistically that it is because residency entitles them to a zero
rated income tax. |
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| One survey says
that the number of millionaires in the UK will increase four fold in the
coming years, and the UK has become a very important market for Monaco
real estate recently - that will boost prices as the demand feeds through.
Another survey coming out of the UK predicts that house prices will rise
by 70 per cent over the same period. Inheritance tax in the UK is quite
a big issue at the moment as many more people are above the government
threshold due to their house price, and in Monaco there is no inheritance
tax, which gives an added incentive for some to move to a tax haven. People
choose to leave their money to their children, cutting out the government
that would take a large share.' |
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| A CBRE report on world property
also noted that Monaco real estate prices match those of London and New
York's Manhattan. |
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| 'Apart from the very obvious
financial advantages that can be had by moving to Monaco', conclude
YourMonaco.com, 'Perhaps the most telling survey for us was the one
by Laura McKenzie, a US travel expert. She puts Monaco as the number one
destination for safety. For people with money preserving and optimising
what you have in the bank is important, but so is the ability to walk down
the street without fear. |
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| Monaco provides both the financial
and personal security the wealthy seek, and it should come as no surprise
when they decide Monaco is the best place for them and their families to
live.' |
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| Apart from being a tax haven, the
principality is perhaps best known for the Monaco Grand Prix. In addition
to the race that takes place each May, the world's premier yacht show is
held in September, attracting millionaires and billionaires to view what
the yachting world has to offer. |
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| Monaco real estate specialists Tribune
properties say that the yacht show in September is symptomatic of the way
Monaco has progressed in recent years in attracting high profile events
to the principality. |
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| 'Apart from the Monaco Grand
Prix and the yacht show, there is the tennis in April and this year for
the first time a flower show. If it goes the same way as the other events
it will be a success in its own right before too long. Having different
events throughout the year benefits the hotels in Monaco and the tourist
sector generally'. |
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| The European tax haven is the second
smallest country in the world, but the map of Monaco was re-drawn twenty
years ago when land was reclaimed from the sea. Earlier this year bids
were invited for an island to be built off Monte Carlo. |
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| 'When complete the island will
add to the Monaco housing stock', say Tribune Properties, 'And this might
help dampen the property prices a little. But we anticipate that the apartment
blocks will be low rise as Prince Albert is very keen to promote Monte
Carlo as an environmentally sound place to live. We expect some of the
properties will be reserved for key workers while the rest will be available
for general sale. But overall we doubt if the new apartments will keep
up with increased demand, and property prices in Monte Carlo will stay
as high as London and Manhattan'. |
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| It is also possible that when the
island is complete that the Monaco Grand Prix circuit will change. |
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| Monaco has long been notorious for
a lack of overtaking places, and this might help alleviate the situation. |
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| Included in the plans will be new
Monte Carlo hotels. |
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| 'Overall all the key elements
are in place to see a significant rise in Monaco property prices in the
near and medium term', claim Tribune Properties. 'Quite ordinary one bedroom
apartments are changing hands at nearly a million Euros now. In the next
two to three years we would be surprised if you could buy even a small
studio for that.' |
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| For news about Monte Carlo Monaco
visit www.yourmonaco.com |
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| The latest properties for sale
in Monaco property can be requested at monacoproperty.net |
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