Take a Part in Paris — Invest in Your Future




Take a Part in Paris — Invest in Your Future

Parler Paris…
Your taste of life in Paris and France
ParlerParis.com
Tuesday, October 28
, 2008
Paris, France

Special Edition


Dear Parler Paris Reader,

There are several important announcements to make — things you might want to be aware of…things that could affect both your ‘present’ and your ‘future.’

We know the ‘present’ uncertainty with the worldwide financial crisis, the unresolved U.S. presidential election and the fluctuating currency rates of exchange leave us all really nervous about the ‘future.’

Luckily, we don’t and can’t ‘live’ in the ‘future’…we can only imagine how the ‘future’ will unfold. Therefore, rather than fearing it — something that is only in our minds, but not yet a reality, we can use the ‘present’ to plan for it in practical terms.

At ‘present’ during these strange
and volatile economic times, the question most asked
when planning for the ‘future’ is naturally
“Where can one make safe and profitable investments?”

Many have watched their portfolios twindle and have concluded that doing nothing at the moment is best, so that in time, their previously higher levels will be re-established. They’re banking on the ‘future’ rewards to recuperate their losses.

People with property in many parts of the U.S., have watched their values drop, too. If you own a condo in Florida, then you know what I’m talking about. Values have declined while taxes and insurance have gone up. Cost of ownership has increased while appreciation has decreased. They’re stuck, too…waiting for the value to go back up to a previously higher level so they can afford to sell and recuperate most of their investment.

But will it? Remember, that’s the ‘future.’
It’s all in our minds.

One reader wrote me, “Since you have been a big booster of central Paris property, it might be a good idea to inject a little caution, at least until the credit markets start to return to normal.”

Then another wrote me just today. A financial advisor for 34 years, he said that this last month was his most difficult ever, “…but for your work and those of us looking toward Paris — the dollar is really on the move and likely to continue. We appear to be building a bottom in the markets here so hopefully by year end we all will be in better shape.”

Thank you, reader number two!
I couldn’t have said it better myself.
If you asked me where is the safest investment one can make, I’d still have to say “Paris.”

Those who own real estate here know that to be true. They’ve watched the value of their property continue to rise steadily since 1998. The Chambre de Notaires just reported for second quarter 2008 an annual average increase (again!) of 10.1% for all of Paris! The 6th district (Saint-Germain-des-Prés) gained as much as 16.3% and the lowest increase was 7.7% in the 12th — nothing ‘to sneeze at!”

This means that if you purchased a property in the 6th district for 500,000€ last June, today, one year and three months later, you could sell it for about 600,000€. Even after closing costs of approximately 7%, your profit in just one year would have been 65,000€!

It doesn’t hurt that Paris is an international city. Foreign property buyers make up more than 8% of the purchasers…led by the Italians, followed by Americans and British and most recently, the Russians. Prices continue to increase because there is almost no new residential development due to a lack of available land and tight planning restrictions. The city protects its historic center so that 16th, 17th 18th, 19th and even 20th-century buildings are not being razed to make way for high-rises that house thousands. So, that means Paris can’t move up or out further strengthening the resale market.

They’ve also watched their rental properties yield at least a 50% occupancy rate and many much higher. My own little vacation rental apartment, “Le Provençal,” achieved a 97% occupancy rate in July and a 93% occupancy rate in September! Sure, these were unusual months, but on the average it can boast of more than 80% occupancy which easily pays the mortgage and then

some.

Why?

Paris is the number one tourist destination in the world with more than 27 million visitors reported in 2007. And it won’t hurt that the dollar has gained strength which will bring back many American tourists who gave up Paris for less expensive destinations…$1.24 now buys 1€, a vast difference from the high of $1.60 only a few short months ago (chart provided by HiFX.com).

 

That also means that your U.S. dollar buys you a lot more property than it did even this past Summer, so it’s a great time to jump into the market…while your dollar will buy you more property for the money. Plus, the interest rates are expected to drop, stretching your hard-earned buck even farther.

If you’re comparing Paris with other cities,
you might be surprised to learn that Paris is still
a big bargain on the global market.

In fact, Paris isn’t even in the top 10 most expensive real estate cities according to Hamptons International Research reporting this past February 2008. London is most expensive on a per square foot basis, followed by New York, Hong Kong, Moscow, Rome, Los Angeles, Miami, Dubai, Mumbai and Marrakech. And that means it’s still a big bargain, in spite of its international appeal.

So, while you’re sitting tight waiting for your investments to come back to the previous levels, let’s go back to the question “where can one make safe and profitable investments?” And if you agree that Paris is certainly one of the best in the world, then there is a way you can get your ‘foot in the door’ in a small way until you’re prepared to do it a big way when you’re ready.

There is no doubt that single ownership of a rental property can yield the greatest return on investment. But let’s face it, that means taking on the full responsibility of the property, from both a financial and physcial stand point. We’ve assisted more than one hundred people to do just this and of them we don’t know a single owner who was not satisfied with their property, the purchase, or the return they are getting on their investment. In fact, right about now, they’re pretty smug their money is invested in property in Paris instead of having lost bundles in the stock market!

So, if this is what you’re thinking, then don’t read a word further. Stop now and give us a call to find out more how you can become part of that group of happy owners.

But, if you don’t have 30% in cash to put down on a property and another 2,000€ per square meter to renovate it, then consider another really equitable way you can get that proverbial ‘foot in the door.’

It’s called FRACTIONAL OWNERSHIP.

You likely already know lots about it. It’s a pretty simple concept. You and a group of others share in the ownership of one property and then share the time spent in that property. It is NOT TIMESHARE.

A hybrid of direct ownership and time sharing, Fractional Ownership combines the best elements of both. The primary differences are that while timeshares involve many shares in a large complex with “resort” amenities and costs built specifically for that purpose, fractional ownership is joint ownership by only a few individuals in a single property whose value can easily be determined on the open market.

The key to making a good Fractional Ownership Property investment is the same as buying any property: location, location, location!

French Property Fractional, our division that specializes in co-ownership, makes a point of finding only the finest of properties in the finest locations, developed by the finest of savvy developers. It’s our reputation at stake, so you can trust that we’re never going to represent a property that won’t deliver!

Not long ago we introduced our own new Fractional Ownership Property called “Le Palace des Vosges” located in the Place des Vosges in the 4th arrondissement of Paris. Once this “maison” style apartment is renovated and decorated to palatial perfection, it will consist of two bedrooms, two baths, a powder room, laundry facility and will have usage of a storage locker and parking garage! There will be only 13 lucky owners, each with four weeks a year of usage. The occupancy is sheduled for May 2009.

Anyone who knows anything about Paris knows that the Place des Vosges is THE BEST ADDRESS IN PARIS.
There is no finer investment in the City of Light. Period.

I could spend ‘hours’ talking about it, but instead, find out more for yourself by visiting the Web site at French_Property_Fractional_Le_Palace_des_Vosges. There you will learn everything you need to know about it, except one important thing: the Purchase Contracts are NOW AVAILABLE (as of this emailing!)…and that means that the dozens of people who are already interested will have first shot at getting their shares.

That’s why you won’t want to delay a minute if you think you might be interested…as the first buyers will save the most amount of money an

d have the best pick of weeks.

But it’s certainly not the only property in Paris
you can consider.
There are three others you will want to know about.

There’s a new apartment on our list of great Fractional Ownership Properties you haven’t heard about before. It’s called “La Résidence Luxembourg” and it’s exactly that — a beautiful spacious one bedroom apartment near the Jardin du Luxembourg in the 5th arrondissement. Heaven!

The location is fabulous! The apartment is stunning. Well designed and appointed. The developer is Dwell Paris, experts in Fractional Ownership. They’re offering a lucky 13 four-week shares, also, and the apartment is ready for occupancy NOW! To learn more, visit French Property Fractional_Residence_Luxembourg

You may already know about our two other sensational Fractional Ownership Properties offered by Paris Home Shares: “Chez La Tour” and “Le Petit Trésor.” Paris Home Shares has developed four Fractional Ownership Properties — experienced in providing quality apartments in top locations.

Chez La Tour” is a beautiful two-bedroom luxury apartment in the 7th arrondissement near the Eiffel Tower. This is Paris’ chicest district. Only four shares remain out of 12 — specifically the months of November, December, January and March and it’s already being enjoyed by the other owners. The shares won’t last long, so be sure to visit
French Property Fractional_Chez_La_Tour for more information.

The other is a one-bedroom apartment named “Le Petit Trésor.” It is currently under renovation on the quiet and lovely pedestrian street of rue Trésor in the 4th arrondissement just off rue Vieille du Temple. It’s on the 5th floor of a classic Haussmannian building with a long balcony and great views of Le Marais. You will want to visit the Web site at French_Property_Fractional_Le_Petit_Tresor to learn more.

When you contact Steve Navaro of Paris Home Shares, he can direct you to his Web site where he is documenting the renovation week by week. It’s great fun to see the progress of how he’s turning an old-fashioned French apartment into a contemporary and luxurious abode for its 12 owners.

If what you want is outside Paris in the countryside, then visit French_Property_Fractional for the other wonderful properties available.

Meanwhile, consider changing your ‘present’ for a more profitable, exciting and fulfilling ‘future’ in Paris. Take part. Share in the pleasure with a group of other happy owners in a solid investment you can enjoy for years to come and bank on increasing in value, while saving you money on hotels during your stays!

Don’t wait for it to happen to you.
Make it happen yourself…now.

A la prochaine…

Adrian Leeds
Editor, Parler Paris


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P.S. Visit French_Property_Fractional.com or contact me at any time to learn more how we can help you build a safe and sound portfolio of properties in the City of Light or the provinces of France. Whether you want to be a part owner or full owner, our team is dedicated to ensuring that your investment in France is a sound one. We work for the buyer…not the seller! Learn more at French_Property_Consultation or email me at [email protected] for advice on how to make your dollar work best for you.

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Copyright 2010, Adrian Leeds®
Adrian Leeds Group, LLC, adrianleeds.com

 

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