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 A weekly e-letter sharing insights, recommendation, tips and discoveries about property in both Paris and France!
A Window of Opportunity
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Tuesday, October 11, 2011 from 4 p.m. to 8 p.m. Join Adrian Leeds and other property professionals at this free international event for investors wishing to learn more about France’s dynamic property market. Speakers include experienced, independent property investors from France and around the world. Come to network with key players in the property industry and keep up-to-date with changes in the market. The event will run from 4 p.m. to 8 p.m., followed by drinks nearby. BNP Paribas Investment Partners For more information and to reserve your spot, contact: justine.trueman@bnpparibas.com. Bonjour French Property Insider Subscriber,Tuesday evening I am one of three professionals speaking at the “Residential Property Investing Seminar” sponsored by BNP Paribas Investment Partners. My topic is: Outlook for the residential property market in Paris and the South of France In preparation for the event, I took a serious look at how the price of property in Paris has changed for the last 20 years and what that means to the future. The future is one of those illusory things – something that actually doesn’t exist and never will come, but something for which we must plan and consider, particularly when making such a large and important investment as real estate. Without ‘giving away the show’ I will tell you that Paris property did actually take a dip at one time – in 1998 when it reached a low at an average of 2,260€/m2. Today the per-square-meter average in the capital is 8,150€ -- almost four times higher in the last 13 years. Lending rates were double in 1998 to what they are today, so borrowing power wasn’t as interesting. If your income was based in dollars, then you had a different kind of advantage – because the rate of exchange at the time was $1 = 0.91€. Today it’s 0.75€.
So, let’s take a property in Paris of 50 square meters. In 1998, you could have purchased it for 113,000€ or $124,175. That same property today is valued at 407,500€ or $543,333 – more than 4.3 times in dollar value. In 1998, rents (long term) were on the average 15€ per square meter per month, so the rent on this same 50 m2 apartment would yield a little more than 9,000€ per year. Today, at an average rental of 30€ per square meter per month, your rental yields would be 18,000€, or double.
As the future is illusory, hindsight is perfect vision. Don’t we all wish we had invested in French property at that time? But, we didn’t…and it doesn’t matter. You have to start somewhere and take long-range goals to achieve the highest rewards. With the change in the capital gains tax laws, there is a new and small window of opportunity for would-be investors. Owners of property longer than 15 years, but less than 30 years, are putting their properties on the market between now and February 1, 2012 when the laws take effect to take advantage of the tax benefit. This small flood of properties is bringing prices if not down, to at least a stable current level. Lending interest rates areexceptionally good – about 3%. The rate of exchange is lower than it’s been in 10 months.
If you’re considering jumping into the market, now is the time. I am mean NOW. Because the moment the future date of February 1 rollsaround, that window closes – and all those owners will be holding onto their properties another 15 years, reducing inventory and forcing prices us. And since we don’t know what the future will bring, interest rates and foreign exchange rates are pure guesswork. If you want to learn more, attend the seminar Tuesday or contact us personally. Note: “Residential Property Investing Seminar” Tuesday, October 11, 2011 from 4 p.m. to 8 p.m. Join Adrian Leeds and other property professionals at this free international event for investors wishing to learn more about France’s dynamic property market. Speakers include experienced, independent property investors from France and around the world. Come to network with key players in the property industry and keep up-to-date with changes in the market. The event will run from 4 p.m. to 8 p.m., followed by drinks nearby. BNP ParibasInvestment Partners For more information and to reserve your spot, contact: justine.trueman@bnpparibas.com
Adrian Leeds
 France: The Owner’s Manual
France always makes sense! It is one of the most beautiful countries in the world, immersed in culture and tradition, with a good climate and unspoiled countryside, as well as excellent health care and affordable real estate. It’s not surprising that France is the world’s favorite destination, receiving in excess of 82 million overseas visitors each year. This edition is updated and edited by Adrian Leeds and Schuyler Hoffman. If you’ve ever aspired to living or investing in this beautiful and desirable country, France: The Owner’s Manual will provide you with all the information you need to turn your dreams into reality. Get Your Copy Today!  Own a Piece of Paris. Fractional ownership is the hottest way to own your piece of Paris simply, easily and inexpensively! Here is one of our newest offerings available through French Property Fractional:The Ile de la Cité is where life in Paris began centuries ago, centered around one of the world's most important cathedrals, Notre Dame. Just a few steps away is this old-world elegant studio apartment with windows providing a perfect and beautiful view of "Our Lady.". For more information on this and other fractional ownership properties now available, orto learn how you can design your own property, visit French Property Fractional. To learn more about "What is Fractional Property Ownership?," click here: frenchproperty.adrianleeds.com And to get the free "Paris, France Property Market Report," click here:  Book your FREE personal consultation with Adrian Leeds!
If you are a guest staying in any one of our luxurious Parler Paris Apartments, and would like to consider having your own "pied-à-terre" for your pleasure and profit, fill out our consultation request form for a free one-hour consultation while you're enjoying the apartment in the City of Light. Visit ParlerParisApartments.com to book your stay and for more information or email Adrian at adrian@adrianleeds.com.  Getting a mortgage in France is easier than you think...
Let us show you just how hassle-free it can be to get a French property mortgage for your dream Paris pied-à-terre or villa in the country! Visit French Property Loan or contact Mortgage Manager John Rule at loan@adrianleeds.com Helpful Conversions for Real Estate 1 square meter = 10.7639104 square feet 1 hectare = 2.4710538 acres For more conversions, refer to: www.onlineconversion.com/  Parler Paris Après-Midi
At every Après-Midi, a guest speaker of note will come to talk about a topic of interest and then open the floor for questions and discussion. October 11 David Downie -- "Paris and the Nostalgia Business: Merging Past and Present in the City of Light" Author of Food Wine Burgundy, Paris City of Night and Paris, Paris: Journey into the City of Light, David Downie is a San Franciscan who moved to Paris in the 1980s. His travel and food features have appeared in over 50 publications worldwide. Downie is a European correspondent for AOL's Gadling.com and the author of a dozen nonfiction books and two thrillers.
Costs nothing except whatever you drink! For more information, visit Parler Paris Après Midi
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A bientôt,
Tuesday, October 11, 2011