Making the Most of a Million
Volume V, Issue 10
What does $1 million buy you in Paris?
Based on the current currency exchange rate, it will buy you a 680,000€ apartment, or approximately 70 square meters with two bedrooms in a central part of the city.
$1 million will actually buy you three apartments valued at 680,000€ (or more) if you leverage your hard-earned greenbacks by taking one of the smart loan products our lenders often non-residents.
In today’s issue, we’re going to teach you how to look at the financial picture with a corrective lens and how to invest in the strong and ever strengthening euro. The longer you wait, the more it will cost you and the less you will earn.
I remind you that Sunday is your opportunity to speak directly with Mary Fort, of Banque Patrimoine et Immobilier, who holds many interesting mortgage solutions in the palm of her hand!
We also take a look at what $1 million buys you in comparison to other cities around the world (thanks to http://www.Forbes.com) and be sure to see the Hot $1 million properties in Paris we’ve chosen for you.
Paris is now smoke free, believe it or not!…and in just a few days, everything will be ON SALE, so now’s a great time to come to town, save a bundle on the chicest French fashions and invest in a property that will make you rich in more ways than one.
Happy New Year and to all, à bientôt…
Editor, French Property Insider
Email: [email protected]
P.S. If you haven’t already reserved your place for the Living and Investing in France Real Estate Conference in Miami February 16-17, 2008, then don’t delay! Ginny Blackwell is our newest edition to the line-up of professionals — an expert in Fractional Ownership, so you won’t want to miss that. And, Mary Fort will also be with us! You’ll find all the information you need in this issue and at the Web site: https://adrianleeds.com/wp-content/uploads/newsletters/frenchproperty/conference/LIF_Miami_AF_Feb_2008/index.html
Volume V, Issue 1, January 3, 2008
In this issue:
* Why a French Mortgage Makes Sense
* Free FPI Conference Call – This Sunday, January 6!
* $1 Million Homes Around the World
* French Beach Property Still Popular
* Smoke Free Paris and Winter Sales
* The France Show, January 18-20, 2008, London Olympia
* Introducing New Presenter at Miami Conference
* Own Your Own Piece of France!
* Living and Investing in France Conference, February 16-17, 2008, Miami
* FPI Property Consultation, Search and Relocation Solutions
* Today’s Currency Update from Moneycorp
* Next Parler Paris Après-Midi: January 8, 2008
* Hot Property Picks: Million Dollar Paris Property
* Leasebacks: Residence du Levant, France, Mediterranean Coast, La Motte en Provence
* Managing Your FPI Subscription
* Classified Advertising: Parler Paris Apartments — Le Penthouse Voltaire
Looking at the Cost of Property in France…
Through the RIGHT Lens
By Adrian Leeds
The rates of exchange for both the U.S. Dollar and the British Sterling are suffering against the strong Euro. As of today, one euro buys you $1.47 and £0.75. For U.S. and British tourists to France, it may be painful, but for owners of Euro assets, such as property, it’s a blessing. Their assets are growing in value, not only in euro value, but even higher in dollar and sterling value.
US Dollar vs. Euro
The rate of excha
nge is frightening many would-be investors from purchasing property in France, mostly because they tend to use simple math: a property in France of 500,000€ now equals at today’s rate of exchange $735,000 or £375,000.
Sterling vs. Euro
This is the way one might view it, only if you were purchasing a property for CASH. Purchasing a property for cash in today’s economic environment is simply not financially smart, especially considering today’s rate of exchange issues.
Taking a mortgage is the sensible solution to virtually eliminating the rate of exchange issue, but first, here are a few basic financially sound reasons to take a mortgage:
1. Paying cash means your money will be tied up.
2. Mortgage interest is tax deductible.
3. There are lost opportunities by using all of your cash: if you get a mortgage at 6% and you are earning 7 to 10% in returns on other types of investment, then your opportunity cost is 1 to 4%, meaning you are not utilizing your money to its greatest potential.
4. Leverage — if you put 20% down on a 500,000€ apartment, and it appreciates at 10% per year (the current annual average in Paris), 10% of 500,000€ is 50,000€ per year, on an investment of 100,000€ (20% of 500,000€) for a gain of 50% per year. Could you make at least that amount by investing the 400,000€ that you borrowed?
Imagine if you own the property 10 years. You bought the property for 500,000€ and put down 20% (100,000€). Let’s say it averages 10% increase over each year and with compounding interest, the value would increase about 678,974€ (a new value of 1,178,974€), a profit of almost 7€ per euro invested.
Now imagine that same property, and you bought it for cash. You now will have earned only 1.36€ on every euro invested, or a profit of 36 euro cents.
If you had taken the first option, you could have purchased 5 properties, all of which would have earned you 7€ on each euro invested!
Now, with the rate of exchange issue, there are even more reasons to take a mortgage:
1. The only portion of the purchase that must suffer the rate of exchange is the down payment (15 – 20%) and the Notarial fees (about 7 to 7.5%).
2. If you take a mortgage with no early redemption penalties, than the mortgage can be partially or totally repaid during times of rate parity or strength of currency during the life of the loan.
3. If the property is income-producing, such as a short or long-term rental, then the rents charged in euro value cover the cost of the euro mortgage.
4. You can further remove your currency risk by using currency specialists, such as Moneycorp (https://adrianleeds.com/frenchproperty/loan/moneycorpconvertor.html) to save about half the transfer commissions and take advantage of their “buy forward” and “regular payments abroad” services.
Do not look at the cost of owning property in France with the WRONG lens. Consider this: $100,000 (68,000€) in cash is enough to purchase a 25 to 30 square meter apartment at 225,000€ in a central location in Paris that will yield weekly rental rates of an average of 150€ per night, 255 nights a year (70% occupancy rate), or 38,250€ per year — a yearly return on investment of 56%, not including the annual appreciation!
Editor’s Note: Mary Fort, of Banque Patrimoine et Immobilier, will be joining us at the Living and Investing in France Real Estate Conference February 16-17, 2008 in Miami Florida and will be the guest speaker on a FREE conference call for all FPI subscribers this coming Sunday January 6, 2008 to talk more about how to Beat the Decline of the American Dollar. Scroll down for more information on BPI and how to register to participate in the conference call.
FREE FPI CONFERENCE CALL!!
Sunday, January 6th, 2008
Beating the Decline of the American Dollar
With Mary Fort, Banque Patrimoine et Immobilier
As an FPI subscriber, we offer you special access to our time and knowledge with our own conference calls. The next scheduled conference call is Sunday, January 6th at 8 p.m. Paris time, 2 p.m. Eastern time. Mark your calendars now, but don’t worry, we’ll give you plenty of advance notice.
We will be discussing how to beat the decline of the American dollar by using the newest and most innovative loan products on the market today. All FPI subscribers are invited to participate.
Conference Date: Sunday, January 6th, 2007
Conference Time: 2 p.m. EST, 8 p.m. Paris time
Please RSVP to this special event and we will send you the call details. Sign up now by emailing: [email protected]
Paris, France, $1.04 million
What $1 Million Buys In
Matt Woolsey for http://www.forbes.com
Home prices in many parts of the world swelled last year, with Eastern European and Scandinavian markets leading the way with double-digit growth.
The result? On foreign soil, $1 million buys less than ever.
In London, it’ll get you a one-bedroom, one-bathroom flat in Primrose Gardens. You’ll save on cabs, however; the building is steps from the Belsize Park tube station. In Hong Kong, $1 million buys a three-bedroom, 825-square-foot apartment in a high-rise between the residential areas of Aberdeen and Pokfulam.
Complete List: World’s Million-Dollar Properties
Shoppers in New York don’t get much more space. A 647-square-foot Turtle Bay condo, not far from the United Nations, nips the seven-figure mark, and some may say justly: The property features a 45-square-foot balcony, white oak floors and 11-and-a-half-foot ceilings.
Forbes.com looked for million-dollar properties representative of the world’s offerings and found a range of apartments, townhouses, lofts and vacation homes on every continent, excluding Antarctica. In emerging markets like South Africa or Egypt, $1 million might buy a small estate. In major cities like Paris, Sydney and Dublin, you’re likely limited to apartments….
To read the entire article visit http://www.forbes.com
Apartments in desirable parts of town are difficult to come by, especially with a $1 million price cap. This one-bedroom, 615-square-foot space on Ile Saint Louis (pitured above) is on the fourth floor of a building that dates to 1650. It has southern exposures and a fireplace. It is listed through Terra Cognita Estate Solutions.
Editor’s Note: Editor of Forbes.com, David Andelman, a past Paris correspondent for CBS News (1980-1987) is the author of a just released novel, “A Shattered Peace,” a revealing look at the powerful lessons the Treaty of Versailles has for us today. See https://adrianleeds.com/wp-content/uploads/newsletters/parlerparis/books/byamericanauthors.html for more information.
Why Investors in France are not Beached
Those looking at property investment in France have the luxury of a variety of different possible markets to serve. There are those who fancy commuting from Paris or other parts of the north to London via the Channel Tunnel. There are those who fancy a place among the famous vineyards. Alternatively, there are those who seek the ski resorts in the Alps.
Then there is the south, with a strong market here for both migrants and holidaymakers, with the warmth and lifestyle of the Côte d’Azur a huge attraction. But it is also prime real estate, so investors looking for a bargain will have to look elsewhere.
Luckily, they will not have to venture too far, the Daily Telegraph reports. Those looking to land a beachfront property can acquire a two-bedroom apartment at Le Barcares, a fishing village just 20km from Perpignan in the Languedoc region.
The Languedoc region has a number of attractions to it, quite apart from the coast. It is still close to many of France’s most renowned wine producing areas. It is not far from the Spanish Border, a potential attraction for holidaymakers hoping to make a short homage to Catalonia. Finally, the Pyrenées are close enough to interest mountain lovers.
Investors looking for a property in the south of France have some other good options as well, according to property advisor Penny Zoldan. Writing in French Property News, she recommended that investors should, when choosing between town and country, go for the latter. The reasons behind this, she stated, were that towns attract more workers, while some French people rent a house in a town while owning a rural property. Both contribute to high demand and push rents up, she said.
In addition to this, Ms. Zoldan commented that many towns were investing in student accommodation, which is both cheap and enjoys good demand, while international investment could raise demand for housing.
Cities the latter trend could affect included several in the south, such as Montpellier and Marseille on the coast and Toulouse, which is further inland but nearer the Pyrenées. Ms. Zoldan said these are cheaper than Paris and offer a choice between leaseback properties or those offering guaranteed rental return.
Investors in these places may find less of a tourist market than on the beach at Le Barcares but the potential of such locations indicates yet another segment in the varied French buy-to-let market.
Paris Nouvelles (News) for 2008
By Adrian Leeds
Paris has become smoke free! As of Tuesday, January 1st, 2008, in all hotels, bars,
nts, discotheques, casinos and all public spaces, smoking is now prohibited! Hard to believe…but true! And in anticipation that smokers will likely head outdoors, the ordinance also forbids loud conversation in the evening hours on the street, cigarette butts being thrown to the ground and holding a glass with an alcoholic drink outside of any of these establishments.
It won’t be easy, but the city is ready to educate the owners and managers of the establishments as well as the smoking customers. About 200,000 postcards, posters and bulletins are about to hit the Paris streets with a long list of educational and informational meetings, presentations, advertising, etc., targeted to make the transition as smooth as possible.
It is already a pleasure to breathe freely and easily in any café. If the non-smoking campaign is as successful here as it was in the U.S., then before long, the French won’t be smoking hardly at all! Imagine that?!
Looking a little further into Paris’ future is the annual Winter Sales Event January 9 to 20, 2008. More than 1500 shops as well as 500 hotels and restaurants are joining in the fun and economic prosperity. There are five shopping circuits the city is recommending…all on an interactive map of the city. Visit http://www.soldesbyparistouch.com/uk/ for more information and get ready to battle over the bargains!
The France Show
January 18-20, 2008
The France Show 2008 will be the UK’s largest celebration of French property, culture, food and travel. With five main themed areas, the show at Olympia in London (previously Vive la France) will give you the chance to explore your passions, hobbies or interests in this wonderful country.
Plus, if you pre-register (before 31st December) you can order up to six tickets FREE of charge — click here http://www.thefranceshow.com/pre-register.aspx
Friday – 10 til 6
Saturday – 10 til 6
Sunday – 10 til 5
Welcome Virginia (Ginny) Blackwell, French Property Shares, to the Living and Investing in France Real Estate Conference!
Ginny Blackwell has had a love affair with France ever since she flew the coop at age 20 and spent a year in Paris studying at the Sorbonne. In 1981, she finished a Masters in International Business from AGSIM in Phoenix, Arizona. After settling in Portland, Oregon, she helped launch Blackwell Capital Management, which created a proprietary money management system focused on the growth equity market. When an opportunity arose in 1998 to shop for a property in the Dordogne, Ginny jumped at it and was the first to use a US limited liability company as a vehicle for shared ownership in France.
Owner of French Property Shares, she offers deeded fractional ownership properties to an international clientele who love having a unique home base in Europe, but prefer to share the expenses among six or more like-minded people. Three new properties are envisioned for 2008 and FPS also plans to feature their first Italian home share- www.frenchpropertyshares.com. Her job is to find the ideal property at an affordable price, to handle the multiple requirements for foreign ownership, and to provide you with a turn-key property to use and enjoy. When not at one of her home shares in the Dordogne or in the Languedoc, Ginny lives with her husband, Dale, and their three bilingual sons in an historic house in Canandaigua New York, quite a change from their farm in Oregon! As her husband, Dale, says, “We are closer to France now!”
Editor’s Note: Ginny will be speaking at the Living and Investing in France Real Estate Conference February 16-17, 2008 in Miami Florida on the Fractional Ownership Solution.
The “Fractional Ownership” Solution
An Update by Adrian Leeds
Fractional ownership is a hybrid of direct ownership and time sharing, combining the best elements of both. The primary differences are that while timeshares involve many thousands of 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 and for which there are very few, if any, resort amenities which must be managed and maintained (and paid for!). For Paris Home Shares, the city of Paris is it’s own resort! Visit our properties at https://adrianleeds.com/wp-content/uploads/newsletters/frenchproperty/consultation/sales/fractional/index.html
See the Paris Home Shares Fractional Ownership Offerings:
LE JARDIN SAINT-PAUL
Those who have purchased shares in Le Jardin Saint-Paul on Rue Ferdinand Duval, 4th Arrondissement, Le Marais, will be happy to know the renovation is complete! To see a virtual visit of the apartment, click here: http://www.digitalive.fr/paris/tour.html
To those who have not yet purchased and are interested in learning more, the price of one share is now 92,000€. Only three shares remain for sale. They won’t last long.
To visit the site describing the property, visit
NEW FRACTIONAL OWNERSHIP FOR SALE NEAR EIFFEL TOWER
Chez La Tour
Boulevard de Latour-Maubourg, 7th Arrondissement, Eiffel Tower
Two-Bedroom, 88.1 m2
99,500€ / 12 Shares Available
Available for Use May 2008
If you would like to receive more information on this apartment, VISIT https://adrianleeds.com/wp-content/uploads/newsletters/frenchproperty/consultation/sales/fractional/chezlatour.html
Living and Investing in France Real Estate Conference!
February 16-17, 2008
Alliance Française, Miami, Florida
If you’ve always dreamed of owning your own “pied-à-terre” in Paris or home in the Provinces of France, perhaps as a future retirement home or for now as investment property rented part of the year…this power-packed two-day conference is a MUST.
Hosted by Adrian Leeds, long time resident of Paris, Editor of the Parler Paris Nouvellettre® and French Property Insider weekly E-zine and John Howell, lead attorney for the International Law Partnership, London, these two days in Miami will point you in the right direction to make it really happen! Includes three course lunch and cocktail reception.
For more information and to register, visit: https://adrianleeds.com/wp-content/uploads/newsletters/frenchproperty/conference/LIF_Miami_AF_Feb_2008/index.html
Or email Schuyler Hoffman at [email protected]
Property Consultation, Search and Relocation Solutions
Let French Property Insider expert property consultants find your dream home in France for you. We consult with you to help you make the best decisions, ferret out the finest properties to meet your criteria, schedule the visits and accompany you, negotiate with the agencies and owners, recommend the Notaires and other professionals, schedule the signings and oversee the purchase with you from start to finish! You could never do it so easily on your own. Let us take the time and effort off your hands.
FPI Offers More Relocation Solutions!
Moving to Paris? Our experienced relocation expert will make your move easy and hassle-free. We offer complete property and relocation services normally only provided by employer hired relocation firms…but at a price much more affordable for individuals.
Download Complete Brochure
TODAY’S CURRENCY UPDATE
Visit the FPI Web site and click on the link on the left panel or click here for Currency Convertor by Moneycorp Global Money Services: https://adrianleeds.com/wp-content/uploads/newsletters/frenchproperty/insider/moneycorpconvertor.html
for up to the minute conversions of all major currencies.
Compare currency values easily and quickly by visiting:
The charts below are updated every ten seconds.
The prices shown are “inter bank” exchange rates and are not the rates that you will be offered by Moneycorp. Your rate will be determined by the amount of currency that you are buying. Please speak with an Moneycorp dealer or your consultant for a live quotation.
Parler Paris Après Midi
Come for a drink and to meet and chat with other readers in Paris…
The next gathering is January 8, 2008, and every second Tuesday of the month.
HOT PROPERTY PICKS: “Million Dollar” Paris Property
Each week French Property Insider features a range of properties which we believe are on the market at the time of writing. These properties are featured in order to give readers a sample of what is currently available and a working example of prices being asked in various regions of France and districts of Paris.
As we are not a real estate agency. These properties do not constitute a sales listing. For those readers seriously interested in finding property in Paris or France, you can retain our services to do the whole thing for you. For more information, visit https://adrianleeds.com/wp-content/uploads/newsletters/frenchproperty/consultation
**Paris, 9th Arrondissement, 5 rooms, approx. 101m²
On the third floor of a Haussmannian building with elevator. Includes a kitchen, bathroom with toilet, maid’s room (8m²) and cellar (15m²). Several fireplaces, moldings, and original hardwood floors (in good condition), double-paned windows, bright.
Asking Price: 670,000 € + 2.5% Finder’s Fee
***Paris, 7th Arrondissement, 3 rooms, approx. 74m²
Near Bon Marché, on the first and last floors “like a house,” this apartment is located on a tiny, private street. A rare find, would make an ideal pied-à-terre. Includes one bedroom, bathroom, separate toilet, cellar.
Asking Price: 675,000 € + 2.5% Finder’s Fee
***Paris, 17th Arrondissement, 3 rooms, approx. 80m²
In a very lively district, this apartment is on a private courtyard in a small building. This unique space was renovated by an architect and offers a large living room with full windows, an open kitchen and bedroom in the basement. Many lovely features, bright and quiet, and very original.
Asking Price: 684,000 € + 2.5% Finder’s Fee
LEASEBACK NEWS FROM IMOINVEST
RESIDENCE DU LEVANT
France, Mediterranean Coast, La Motte en Provence
One Bedroom 66m² to 72m² €319,000 to €400,000
Guaranteed Buy to Let – Leaseback
GUARANTEED RENTAL INCOME UP TO: 3.00%
SUN KISSED PROVENCE IS YOUR HOST
Only 30min from the Sea between Provence and Côte d’Azur, in a splendid 150 hectare site, discover Les Domaines de Saint Endreol Golf and Spa Resort: a first-class resort set among vineyards and woods within a nature conservation area. This upmarket resort integrates perfectly into its surroundings, in the purest Provençal style, while offering the last word in modern comfort with an 18-hole golf course and swimming pool, a new 2000 square meter Spa, the restaurant “Le Palayson” and our new Leaseback edition: Residence du Levant, the 6th phase of this amazing resort.
The development is located 75 kms away from Nice Airport, 55 kms away from Cannes, 40 kms away from Saint Tropez (only 30 minutes drive at the most to reach the seaside). The residence will comprise 25 apartments with balconies/terraces. The near by golf course measures 6219-meters and passes through stunning scenery with splendi
d views over the River
Endre and offers an exciting waterside challenge at the 13th hole: selected among the 18 most beautiful French golf courses!
This residence will be serviced by one of France’s top management companies, allowing for a hassle-free investment. Investors will earn a guaranteed rental return of 3% net that is not only backed by a legally binding commercial lease but protected by a bank guarantee as well. This provides the added security that investors are looking for nowadays. VAT will be refunded in full to the investor approximately 6 months after building completion. Please take advantage of this exclusive preview and reserve prime units in advance.
SEEKING A MORTGAGE IN FRANCE?
When you make a purchase as important as a piece of real estate in a foreign country, you want to know that you can trust the people you are dealing with. Adrian Leeds has developed a network of professionals that meet only the highest of standards. With the expertise and experience of Adrian and her team, you can depend on getting the best advice and support to feel completely confident that you are making an informed investment decision.
Let us help you secure a mortgage in France at a competitive interest rate. Visit https://adrianleeds.com/wp-content/uploads/newsletters/frenchproperty/loan for more information or contact [email protected]
Managing Your French Property Insider Subscription is Easy!
We receive many emails from French Property Insider Subscribers who want to change their email address, or update personal information. But did you know that you can make these changes yourself?
1. Go to https://adrianleeds.com/frenchproperty/insider
2. Click on “Manage Subscription.” You’ll find it under the “Subscribers Only” section in the sidebar.
3. Enter your username and password.
4. On the Welcome Page, go to “Manage Your Account” and click on “Change Password/Edit Profile”
5. Once you’ve made the changes, scroll down to the bottom of the page and click on “Save Profile.”
Of course, we’re always happy to help, so if you do need assistance, send an email to [email protected]
We wanted better guides.
So we wrote them.
Insider Paris Guides are written for people who love the City of Light. You’ll get a Paris insider perspective on Restaurants… Making a Life… Black Culture… Expat Writers…and the newest guide, Practical Paris!
French Property Insider subscribers receive a discount of 10% off any guide and up to 25% off the entire purchase (if two or more guides are purchased at the same time). Here’s how it works:
1. Click on special Web link we give you just for FPI subscribers.
2. Then order one or more guide(s) and use the promotion
code “ED762.” This promotion code gives you 10% off your total
3. If you order two or more guides, then an additional 15% will be
taken off automatically. There is no promotion code needed.
Here is the special “coupon” Web link just for you:
THINGS YOU NEED TO KNOW
To access password protected pages: click on any of the links on the left panel of the home page of FrenchPropertyInsider.com under “Subscriber’s Only,” then type in your personal username and password.
Past issues of FPI are available on the website. You will find the
“Past Issues” link on the left under “Subscribers Only” or by going to
To receive your free French Leaseback Report or the Paris Property
Report, click on
HELPFUL CONVERSIONS FOR REAL ESTATE
1 square meter = 10.7639104 square feet
1 hectare = 2.4710538 acres
For more conversions, refer to: http://www.onlineconversion.com/
CLASSIFIED ADVERTISING ===
PARLER PARIS APARTMENTS
Email: [email protected]/parlerparis
Welcome to your home in Paris. Home is how you will feel in a private apartment in Paris that has the “seal of approval” from Parler Paris Apartments and me, Adrian Leeds.
Parler Paris Apartments offers high quality accommodations to make your stay in the City of Light as enjoyable and memorable as possible. We at Parler Paris know each and every apartment owner or manager personally, and stand behind the quality of those we represent. We understand your needs and desires, all the small details that make a rental apartment a warm and welcoming home – and a much better alternative to an impersonal hotel!
Parler Paris Apartments is administered and serviced by the same great team as Parler Paris, French Property Insider and French Property Consultation. You can trust that Parler Paris Apartments and all those with whom it is associated will do their best for your 100% guaranteed satisfaction.
Le Penthouse Voltaire
American comfort with French flair! Overlooking Boulevards Richard Lenoir and Voltaire, in the 11th Arrondissement. This three-bedroom, two-bath luxury penthouse with wrap-around balconies and spectacular views, sleeps 6.
Reserve now! Visit https://adrianleeds.com/wp-content/uploads/newsletters/parlerparis/apartments/rentals/voltaire.html
or email: [email protected]
SUBSCRIBE TO PARLER PARIS
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Copyright 2010, Adrian Leeds®
Adrian Leeds Group, LLC, http://www.adrianleeds.com
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