Investing in Paris

Z

z106

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Does anyone know anything about the Paris residential market?

WHat kind of appreciation has it experienced in the last decade?
ANything I should know generaly that's noteworthy ?
 
Yes, for starters, this is how you spell generally!

Paris is doing well, we have a place over there seeing substantial increase in rents.

Capital value not increasing so fast but doing a nice steady 8% to 10% so can't complain.
 
South - how much would someone be paying there for say,a standarrd 2 bed in a city centre area where you would be letting to local professionals?

The kind of area I mean,would be in,say,the financial district for instance.

Basically I mean an area where renting it is not going to be a problem.

Presumably it's cheaper than dublin ?

Also - what yields?

Is off-plan popular?
WHat kind of LTV is possible?

I've read 80%.
However - is there anything similar to the UK whereby they will give up to 90% of purchase price providing it does not exceed 80% of price at completion for offplan developments?

Basically - I don't wanna put in more than 10% day one and want to mortgage the rest.
 
About the same as Dublin, €1,100 to €2,000 a month.

Yields coming down from 6% over the last few years, now below 5%.

Off-plan, LTV etc I do not know, I am not a Parisien estate agent!
 
South said:
About the same as Dublin, €1,100 to €2,000 a month.

Yields coming down from 6% over the last few years, now below 5%.

Off-plan, LTV etc I do not know, I am not a Parisien estate agent!
Click to expand...

Eh -- shouldn't that be 'Parisian' ?

Anyway - Being a purchaser should be sufficient to answer the LTV bit I'd imagine no ?
What LTV did you get ?
 
qwertyuiop said:
Eh -- shouldn't that be 'Parisian' ?

Anyway - Being a purchaser should be sufficient to answer the LTV bit I'd imagine no ?
What LTV did you get ?
Click to expand...

No - "le parisien" = local.

We bought outright with no loan.
 
I was living in Paris for three years and just left for elsewhere in France. The problem with purchasing here is the fees, the notaires fees are roughly about 10% of purchase price on apts. and then there is some additional gov't taxes as well so on top of apt price you should budget about 12/13% for transaction costs. On top of that the mortgages available here are all repayment only and were max. 80% LTV (think this may have increased recently) but also taking into account affordability, not sure exact criteria but they take account of your disposable monthly income to calculate max. mortgage. In Paris now i believe the yields are very low. The only attractive options for investment in my opinion are small apts/studios in the less desirable arrondisements but they are usually about 20 m2 and not exactly a pied-a-terre if that is part of your purchase reason.
 
You mention off-plan. There are very few new-build apartments at all in central Paris. As pag says, the purchase costs are high. If you buy through an estate agent, their fee is built-in to the quoted price. It's not unusual to see an apartment listed with an estate agent for one price and then to see the same apartment listed privately on for 15k less. (You can select the UK flag in the top left corner for an English language version of the site.)

There is a guy in Dublin who deals with Credit Foncier in France. I think his company is called Foreign Mortgages in Dame St. and his name is Harry Saul. (I have no connection with him but did use him to help to organize a mortgage.)

One important thing to bear in mind with French mortgages is that you are obliged to take out life assurance, even if the property is an investment property. I think you are obliged to take it out with the bank themselves also but I am not 100% sure. That can add quite a bit to the cost. In fact, even though one bank was offering us a better interest rate, cheaper life assurance at another bank meant that it was cheaper to go there.

Depending on what option you choose for filing French taxes, you or may not need a French mortgage. You can choose a flat rate, something like 25% of 28% of the gross rent and then you do not need to track your expenses such as mortgage interest. Of course tax policy can always change.

I am pretty sure you can get interest-only mortgages now.

Have a look at this site for some useful information:
http://www.frenchentree.com/france-mortgage/

(I have no connection with that site.)

Consider also the rights of tenants in France. It may be difficult to evict people if you aren't happy with them. You want want to consider short-term holiday lets instead.
 
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