PARIS FOR INVESTMENT REAL ESTATE

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Title PARIS FOR INVESTMENT REAL ESTATE Created 2016-08-17 Created by agathe
High-end New York real estate is a popular choice for smart investors seeking a secure asset with long-term growth.

Why not Paris?

Paris Rentals

Rental apartments needed. It is well known that Paris currently has a severe shortage of rental apartments for residents. Read up on City Metrics reporting on how the housing market in Paris and the strategies the government has put in place to tackle this prominent issue.

In response to the shortage of rental apartments, the government has:

  • Cracked down on short-term rentals.
  • Imposed taxes on owners who leave their properties vacant.
  • Launched other initiatives to increase rental inventory in all sectors of the city.
  • Advantages. Here are some reasons to invest now in a Paris apartment and then rent it for successive one-year terms:

    • Prices are currently stable, and buyers can negotiate favorable deals.
    • The US dollar is strong - currently about $1.11 to the euro.
    • Mortgage rates are incredibly low – under 2% for a 20-year term.
    • Finding an apartment suitable for rental is easy relative to an apartment for personal use.
    • Both property taxes and building charges are incredibly low – a fraction of US and UK rates.
    • Taxes on net rental profits are low and may be offset against US taxes.
    • Utility and operating costs are low.
    • With the exception of a short period after the 2008 financial crisis, Paris real estate prices have appreciated every year since World War II.
    • We can recommend architects, contractors and designers with a record of performing quality renovations on budget and on time.
    • At the end of any lease term the apartment may be withdrawn from rental and used as a personal residence.
    One-year leases. You may have heard horror stories of owners forced to resort to litigation to evict non-paying or undesirable tenants. But these concern only tenants whose lease is longer than one year.

    Paris search team. Our Paris search team can help you identify properties that would be especially suitable for investment purposes. The search is less complicated than a personal search because there is a shortage of rental apartments in all neighborhoods, sizes and price ranges, and fewer aesthetic choices are involved than when choosing an apartment for personal use.

    Rental rates. Rental rates in Paris are controlled by a law (Loi ALUR) enacted in 2015. The higher the quality of the apartment, the higher the permissible rent per square meter.

    Please contact Just France Sales for a consultation or additional information.