As Solid An Investment As The Stones From Which It Was Built


An Apartment on Rue de Saintonge in the Marais (3rd) — Appreciated 12.9% Last Year
Photo by Karen Segal

As Solid an Investment as the Stones from Which It Was Built

International Living’s
Paris Property Picks
Published by Parler Paris
A Friday Peek at this Week’s Best Paris Picks

/parlerparis/

Portfolio #16

Friday, March 26, 2004
Paris, France

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ROMANCE IN THE CITY OF LIGHT

Behind the doors of a tiny pâtisserie, down a side street off the boulevard Saint-Germain, in the shade of tree-lined canals, an enchanting city of romance, secrets and charms awaits you…

“A little walk southwest of the Palais Royal, toward the Pont Neuf, will take you to a wonderful spot for a romantic morning coffee (before most tourists arrive)…”

“Just 700 meters or so long, the areas around Pont Saint-Louis and Pont Louis-Philippe are some of the most romantic, and in the lit-up evening, stunning spots in all of Paris – good for a picnic…”

“Just next to the Palais du Luxembourg (along the rue de Vaugirard), built for Marie de Médicis because she wanted something that looked like the Pitti Palace in Florence, is the Fontaine des Médicis – an ornate fish pond and one of the most romantic spots in the city. Today, the Palais du Luxembourg houses the Senate…”

“The Canal Saint-Martin is a “green lane,” its shaded towpaths, a perfect place for a romantic stroll or a bike ride that will take you past bridges, nine locks, and ordinary old Parisian neighborhoods…”

“Bar Antoine, is a special dining experience, perfect for a romantic interlude…”

Taking you through the city neighborhood by neighborhood, Paris Confidential is ideal for those who want to discover a city they hadn’t yet imagined. Written by Warren and Jean Trabant, rewritten and updated by Elizabeth Reichert, you will learn things about Paris you never expected to know…realizing the true depth of this magnanimous city.

Paris Confidential…

This is no ordinary guide book to Paris. To learn more, click here:
/parlerparis/books/ilpublications.html

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Dear Parler Paris Reader,

Not EVERYONE wants to live here…even I can concede that fact!…but more and more we encounter people who dream of owning that “petit pied-à-terre” for the few times per year they want to enjoy the City of Light — something they can call their own and feel like they’re truly residents, even if for a short time.

If you’ve got plenty of money and appreciation is all you’re seeking, then ownership is pretty simple: You search, you find, you buy, you furnish, you enjoy. A few years down the road, your property will be worth much more, even in the least appreciating parts of town. The average evolution for one year was reported at 12.4%, some arrondissements as high as 17.7% and some as low as 7.8%. One client we had bought an apartment not long ago for 350,000 Euro that had been purchased 30 years earlier for 18,000 Euro — an average appreciation of 11% per year! Not bad while doing nothing but enjoying your property.

In yesterday’s French Property Insider, Jocelyn Carnegie compared the rise in prices of apartments over the last 16 years and measured it against the senior French securities index, the CAC40: “Whilst all markets are to some extent cyclical, more or less according to the vagaries of fashion, economic health or illness, demographics and geopolitics, the property curve shows a steadfast solidity beside the harum-scarum world of stocks. Remarkable in the fact that it has wavered little in the 16-year life span of this chart, these results may not show the startling results of the CAC40 in 2000, nor present shorting opportunities but they do show that real estate in France has been as solid an investment as the stones from which it was built.”

But, what if you want to profit from the property while you’re enjoying it? We’ve learned that most Francophiles who are thinking about owning an apartment in Paris see the advantages of renting it while they’re not making use of it.

Paris is a city that has a year-round rental season. With the exception of a few short down periods (August being the worst!), you can virtually keep an apartment in Paris rented much more than 50% of the year — in fact, an 80% occupancy rate is not unusual. To maximize the rental year, an owner can choose

to stay in the apartment during the low rental periods leaving the most desirable periods open for tenants.

Some parts of Paris have more rental appeal than others. The most risk-free neighborhoods are: Ile-Saint-Louis, Saint-Germain-des-Prés (6th) and Le Marais (4th slightly better than the 3rd). It is no surprise that these are some of the most expensive property locations, too. Arrondissements 1 through 8 in the center in Paris can all attract renters, but you can’t expect the same returns as the other three previously mentioned.

There are some types of apartments, too, that rent better than others. There is such a shortage of two bedroom apartments, particularly those with two baths, that anything fitting that description stays rented virtually 100%. These apartments are harder to find and of course, much more expensive.

Apartments that are very well furnished (luxury) rent better and for higher rental rates. The look and quality of Ikea-style furnishings reduce the ability to rent to a high caliber tenant and regardless of location, the rates achieved will be much lower. Plus, because low quality furnishings don’t endure the test of constant usage, replacing things will be costly and ultimately more expensive.

There are many professional rental agencies to assist you in booking tenants, maintaining the property as well as renovating it. Each of them operates a little differently and offer a variety of services at different fees. We highly recommend that you shop around. The International Living Paris Office offers these services to apartment owners that fit a certain criteria (certain locations and high standards).

International Living owns two apartments in Paris we rent to our readers. The first one we purchased in April 2002 on rue Mazarine in the 6th arrondissement rented 50% of the time the first year yielding a return on investment of 5.6%. The first year is always the hardest to establish, but if the property is viable, then customers return and book in advance, creating an established base from which the occupancy can grow.

We have developed a tool that is an easy way of analyzing if that property you’re considering buying has the potential of being a good investment or not. It’s a big plus to the search process (eliminate those that aren’t up to profit standards) and when making the final decision between those that seem to fit the bill.

The properties we offer you in today’s newsletter fit that bill! Be sure to scroll down.

A la prochaine,

Adrian Leeds
Editor, Parler Paris
E-mail: Info@AdrianLeeds.com

P.S. For more information on how to get the best return on your investment from a rental property in Paris, do not hesitate to contact Porter Scott, Property Rentals Manager at Info@FrenchPropertyInsider.com or Jocelyn Carnegie, French Property Consultant at Adrian@FrenchPropertyInsider.com. To subscribe to French Property Insider, visit /frenchproperty/insider/subscribetofpi.html

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HÔTEL DE VILLE 4th ARRONDISSEMENT 66 m²
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Three rooms on a high floor with an elevator, balcony, two bedrooms, parquet floors, moldings, fireplace, digicode in a pierre-de-taille building.
Asking Price: 418,700 Euro + 2% Finder’s Fee
Serious inquiries email: 26-3-04_Hotel_de_Ville_4th

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RUE ST LOUIS EN L’ILE 4th ARRONDISSEMENT 90 m²
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Spacious three rooms with equipped kitchen.
Asking Price: 750,000 Euro + 2% Finder’s Fee
Serious inquiries email: 26-3-04_RUE_ST_LOUIS_EN_L’ILE_4th

 

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CARREFOUR BUCI. 6th ARRONDISSEMENT 61.5 m²
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Three room on the second floor, bright, with digicode, interphone, building recently refurbished in an ideal location.
Asking Price: 457,350 Euro + 2% Finder’s Fee
Serious inquiries email: 26-3-04_Carrefour_Buci_6th

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* Further resources:

* Many people don’t have the time nor the resources to look for their own little piece of France, especially if they’re located in the States or other foreign country.

* Stay in the heart of the Left Bank your own luxury apartment…

* Getting a mortgage in France is easier than you think.

* * * * * * * * * * * * * * * *
French Property Insider is an e-mail newsletter from the editors of Parler Paris. If you’d like to learn about the insights, recommendations, and discoveries about buying and investing in real estate in Paris and France that French Property Insider readers get
every week, read more about a subscription here:
http://www.agora-inc.com/reports/FPI/WFPID8PF/ or call 1-800-643-2479.

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