Ballpark Figures For Owning An Apartment In Paris

Ballpark Figures for Owning an Apartment in Paris


PARLER PARIS: PARIS PROPERTY INSIDER


Enhanced web-edition online at:
/parlerparis/property


December 12, 2002


Dear Paris Property Insider Reader,


Always on the lookout for practical information for our readers, I asked
three friends who own apartments in Paris for details about the expenses
of owning their apartments. One owns a studio, the second a one-bedroom
and the third, a two-bedroom. Based on their experiences, I can give you
an idea of the yearly and monthly costs of ownership you can expect.


Yearly taxes consist of the "taxe d’habitation" (Paris city tax paid by
all occupants of apartments) and the "taxe foncière" (real estate tax).
For both smaller apartments the taxe d’habitation is about 200 euro. The
larger two-bedroom apartment paid about 300 euro. The formula used to
come up with this is quite complex and will vary depending on whether the
apartment is your primary or secondary residence–a secondary residence
has a higher rate–where it is located, and a number of other factors.


The taxe foncière is based on the value of the apartment. It takes into
account the age of the building, the area of the city, the size, and
other factors. The studio, in an older building in the Marais (3rd), and
approximately 20 square meters, was assessed at 170 euro last year. The
taxe foncière was 200 euro for the 50-square-meter one-bedroom apartment
in an older building in the 5th arrondissement, and the 70-meter
apartment (also in the Marais) 300 euro. (Please see a more technical
explanation of the taxes following this article)


There are many variables that go into the monthly mortgage you will have
for an apartment. My friends bought their apartments a few years ago,
when prices were less than they are now. Two of them bought apartments in
dire need of total renovation, and were able to get good deals because of
this. Financing 80% of the purchase price, the mortgage on the studio is
800 euro per month (20 year loan); that of the one-bedroom is 850 euro;
and the two-bedroom is 1,150 euro per month. In today’s real estate
market you can expect your mortgage will be higher.


Apartment buildings in Paris are like co-operative and condo buildings in
the States. You own your particular apartment but share responsibility
for common parts of the building with the other owners. There is a
monthly "Copropriété" (co-owners) fee that pays for expenses involved in
maintaining the building; common utilities (usually including water for
all apartments), garbage collection, maintenance, etc. This charge runs
approximately 100 euro per month for all of the apartments we’re talking
about. Of course, if your building is undergoing major renovation work
(such as the installation of an elevator or the cleaning of the exterior
stone), your co-owners fees could be higher to pay for that work.


Utilities (gas, electric) for the two smaller apartments run 50 to 60
euro per month, and 100 euro per month for the larger one. Apartments
with electric heat could run much higher.


Basic telephone service is approximately 20 euro per month. On top of
that you pay a per-unit fee for each phone call you make.


Beyond those basics utilities you may want to include Internet access and
cable television. Prices for Internet access are very similar to those in
the States. A dial-up service will cost around 20 euro per month. Be
aware, however, you’ll also be paying per-unit fees for the telephone
usage. This can add up quickly (my first month using dial-up, before
having high-speed access, was over 100 euro).


Broadband access via cable or ADSL is readily available. After initial
modem and set up costs, these services will run around 45 euro per month.
The cost for Cable TV starts at around 20 euro per month for basic
service and goes up depending on how many channels you want.


So, compiling all these expenses into a total, keeping in mind there is a
variety of variables here, when you buy your apartment in Paris
today–not including the up-front costs of the purchase itself or
renovation costs–you can realistically expect your cost of ownership to
start at 1,000 to 1,200 euro per month.


A bientôt,


Schuyler Hoffman
Editor, Paris Property Insider
Email: mailto:propertyinsider@internationalliving.com


P.S. TRAVEL ALERT FOR JUNE 2003: The world famous Paris Air Show
(http://www.paris-air-show.com/index3.htm, still partially under
construction) takes place next summer, June 15-22, 2003. Hotel rooms and
apartment rentals will be at a premium, and at premium prices, during
this period. Plan your travel accordingly and book as early as possible
to avoid paying exorbitant rates for accommodations!


*** EDITOR’S NOTE ON TAXES: Taxe foncière is determined by the "valeur
locative cadastrale" (local tax registry value). It represents the
estimated annual rent if the property was let on the open market. However
the valeur locative is often substantially lower than
the market rental
value. Every year, the valeur locative is multiplied by a factor to
reflect the national variation of price
s. After relief for various
allowances, the net base is multiplied by the current tax rates as voted
by the councils of the relevant région, département and commune. A
collection fee of 2.5 % of the resulting tax is added for the State.


Taxe d’habitation is also calculated by reference to the estimated rental
value of the premises as adjusted (primary vs. secondary residence,
existence of dependent children, etc). This tax is due by whoever
actually occupies the property on January 1 of any given year, not
necessarily the owner.


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*** APRES-MIDI… A SUCESSFUL LAUNCH


Tuesday, December 10th marked the launch of the Parler
Paris/International Living Après Midi. Not sure what to expect, Adrian
Leeds and I secured a table for 6 in a corner of the central atrium at LE
WEBBAR. And we waited…


First one, then two more, then more, and more, and more people began to
show up until by 4:00 we had a group of 15 or so. It was a great time of
meeting our readers, making new friends, networking, and talking about a
variety of things–I naturally ended up talking quite a bit about real
estate in France.


If you weren’t able to make it this time, we look forward to meeting you
the next, or the next, or the… We’ll be there the second Tuesday of
every month! For a full schedule and all the details, visit our website
at /parlerparis/apresmidi.html


(Look for a full wrap up in next Monday’s Parler Paris newsletter, by
Adrian Leeds)


* * * * * * * * * * * * * * * * *


*** LAST OF THE HOLIDAY OFFERINGS


* THE ALCOVE


A large studio, this elegant flat feels more like a one-bedroom. Located
in the chic yet historic area of St. Germain, you’ll be surrounded by the
old and the new. From St-Germain-des-Prés herself to the famous cafés and
brasseries, you’ll never find anything uninteresting. Just strolling
through the peaceful courtyard will have you eager to relax and enjoy a
glass of holiday spiced wine as you relax after a day of exploring
Paris.


Available through the 15th of January 2003.


Offered at 850 euro per week.


Pictures and more details available at:
/parlerparis/property/thealcove.html


* CHARMING COURTYARD GET-AWAY


Cute apartment, ground level on the courtyard and within walking distance
to Place de la Bastille and the Marais. Recently redesigned and
decorated, this charming, intimate 2-room apartment, is located near rue
de la Roquette/Bd. Voltaire, steps away from Metro Voltaire and several
bus lines. It has a kitchenette, separate bath and WC areas, two
mezzanines (single & double) for storage or for sleeping spaces, and 2
single beds on floor-level.


Holiday rental special at 500 euro a week for 1-2 people


Pictures and details available at:
/parlerparis/property/blvdvoltaire.html


* COZY SAINT GERMAIN ELEGANCE


Charming loft in Saint-Germain atop 18th century building, with elevator.
This elegant apartment is quiet, has rooftop views, fireplace, wood
floors, antique carpets and furniture, and all amenities including
washer, dishwasher, tub and stall shower. It also comes with maid
service. Single or couple only, please.


Available December 14 to January 4


Offered at $1,000 per week or $4,000 for entire period, plus security
deposit.


Pictures and more details available at:
/parlerparis/prop
erty/dsstgermainloft.html


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This Falcon 900B jet, currently chartered by celebrities while not in
use, is in excellent condition.


For more details and pictures see:
/parlerparis/property/forsale.html
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*** SPEND A MONTH IN THE FRENCH COUNTRYSIDE… FREE!


Located between Limoges and Poitiers…a restored French château needs
someone to watch over it.


The guesthouse is available, FREE, to someone willing to keep an eye on
things. No work required, but must be prepared to stay for at least a
month or two.


If you’re seriously interested, this is a serious offer! Contact:
mailto:BillBonner@compuserve.com?subject=ppiCaretaker


* * * * * * * * * * * * * * * * *


*** PLANNING AHEAD FOR THE NEW YEAR


* MEDIEVAL SUITE


Located in an Historic 17th-century building that was completely
renovated in 1998. The flat itself was completely remodeled in August
2002. Tastefully decorated, fully equipped, with fireplace and a two
person shower, staying here can indeed be a unique experience. Located
near the Picasso museum and the open air market on rue de Bretagne, it is
superbly furnished and decorated by an interior designer, inspired by
medieval French architecture.


Offered at $900 per week (less for stays of two weeks or more).


Pictures and more details available at:
/parlerparis/property/medieval.html


* UNIQUE PÈRE LÂCHAISE CHARMER


Small duplex (two floors), one bedroom flat, with extra sleeping for
occasional stays in the lounge… (sofa/Futon), with a main area of 20
square meters plus the bedroom, downstairs of approx. 13.5 square
meters.


Offered at 450 euro per week (500 euro Nov.-Feb.), 1,150 euro per month
(1,275 euro Nov.-Feb.)


Pictures and more details available at:
/parlerparis/property/perelachaiseapt.html


* BOULEVARD DU TEMPLE ELEGANCE


Located in the chic and trendy Marais, this upscale two-bedroom two-bath
gem is in the heart of the very "in" Oberkampf district. The apartment is
near the Picasso Museum, Place des Vosges, and the rue de Bretagne open
air market. You’ll be within walking distance of Bastille and Notre
Dame.


Offered at $1,500 per week, $4,000 per month.


Pictures and more details available at:
/parlerparis/property/blvddutemple.html


*** YOU’LL FIND OUR FULL LIST OF SHORT-TERM APARTMENTS, UPSCALE AND
LUXURY APARTMENTS, and PRIVATE HOMES AVAILABLE TO RENT YEAR-ROUND AT:
/parlerparis/property/aptrentalhome.html


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* * * * * * * * * * * * * * * * *


*** PROPERTY OF THE WEEK


* PIED-À-TERRE IN ELEGANT BUILDING


Lots of interest, but still available: Paris for $1 a day!! Small but
complete Paris pied-à-terre in one of the city’s best areas, the 16th
arrondissement. It’s a seven floor walk-up flat, but at a price of just
under $65,000 and a monthly maintenance of only $30, this is ideal for a
student or your yearly visits to Paris. Created by combining two "chambre
de bonne", this is a classic French home-away-from-home. Included are
excellent security and a permanent concierge to hold mail and packages in
your absence. With a southern exposure and a view of the Eiffel Tower,
this charming apartment can be your own piece of Paris to visit again and
again. Price includes a cabana on the street level for storing bicycles,
luggage, etc.


Offered at just 64,573 euro (Furniture included.)


Interested? Please contact:
mailto:propertyinsider@internationalliving.com?subject=ppiVINEUSE font>


Floor plan available at:
/parlerparis/property/vineuse.html


*** DO YOU HAVE AN APARTMENT IN PARIS OR HOME IN FRANCE YOU WANT TO
SELL?


We can help you promote your property as well as connect you with
interested buyers we already have. Send an e-mail to
mailto:propertyinsider@internationalliving.com?subject=ppiForSale


* * * * * * * * * * * * * * * * *


*** FINDING THE APARTMENT THAT’S RIGHT FOR YOU


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


Our office offers you assistance to do the things you can’t do unless you
are here. We have a specific service to help you find your property.
Using our personally selected professional locators and real estate
agents, we work with you to find the property that is worth coming to
France to look at. Or if you are already here, all the better.


After getting a basic idea of what you are looking for, we will spend the
next month searching for just that. You’ll receive weekly reports with
suggested possibilities and pictures that will help to further narrow
down what you want.


The fee for this service is $500. Should we find the right apartment for
you, there will be a finder’s fee of 2% on the price of the property if
you make the purchase, with a minimum of $5000, maximum of $20,000 (the
initial $500 will be applied against the finder’s fee).


For more details and answers to your questions contact:
mailto:propertyinsider@internationalliving.com?subject=ppiFindersService


For details on our full range of property services, got to:
/parlerparis/services/propertyconsultation.html


*** YES, FOREIGNERS CAN GET A MORTGAGE IN FRANCE


Not only can you buy property in France, you can obtain financing here to
buy that property. Our IL Paris office has associations in place with two
major lenders who specialize in foreign clients. They are especially
interested in building their American customer base. Through these
lenders you can finance 70% to 85% of the purchase price of the property,
depending on your resident status in France, at very attractive interest
rates (currently 4.5% to 5.7%).


Our services are available to assist you with filling out initial
applications and collecting the documents you’ll need to apply for your
mortgage. We will set up the appointments with the lenders for you, and
if desired we can even accompany you to your appointments.


If you’re seriously looking to buy property in France and would like more
information on the lending process, visit our website at:
/parlerparis/services/propertyconsultation.html.


For answers to your questions contact Schuyler Hoffman:
mailto:propertyinsider@internationalliving.com?subject=ppiMortgageInfo


*** WORKING AND LIVING IN FRANCE CONSULTATION SERVICES


Living in France for several years, we have accumulated valuable
information and developed valuable contacts. We are able to assist you as
much as possible and when necessary, put you in contact with one or more
of our professional associates to provide the help you need.


– Fee of $75 an hour with a two-hour minimum, plus expenses (travel,
phone charges, etc., when applicable)
– Consultation can be arranged in person, by phone, or e-mail


For more information contact Schuyler Hoffman at
mailto:propertyinsider@internationalliving.com?subject=ppiConsultation or
visit /parlerparis/services/workandliveconsultation.html.


* * * * * * * * * * * * * * * * * * * * * *


COMING TO PARIS?


Why not stay in the finest pied-à-terre in Paris. In the heart of the
Saint-Germain-des-Prés neighborhood of Paris, on rue Mazarine, sits
International Living’s very own Paris pied-à-terre in the finest location
possible.


/parlerparis/property/mazarine.html


* * * * * * * * * * * * * * * * * * * * * *


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