Your Own Hassle-Free Good Investment…Is a Fraction of the Price
Wouldn’t it be absolutely delightful to have a real home-away-from-home in the world’s most beautiful and romantic city (Paris, of course!) or in the French countryside that is a totally hassle-free, yet a good investment?
This is not a far-fetched idea at all. “Au contraire!” For many people, this idea is the answer to their prayers. It works brilliantly well to provide a real home, a risk-free investment in an equity-building property, with virtually nothing to do but take advantage of the benefits — just unpack your bags and move right in — there’s nothing else you need do.
It’s called “Fractional Ownership.”
It all started when NetJets pioneered the concept of allowing businesses to purchase shares in a jet to reduce costs. Now, it’s a well-used term for sharing just about anything, and in this case, we’re talking about luxury apartments in the heart of the City of Light and country homes in the provinces of France.
So, let me ask you again: Wouldn’t it be absolutely delightful to have YOUR OWN real home-away-from-home in the world’s most beautiful and romantic city or in the French countryside that is totally hassle-free, yet makes a good investment?
There is only one answer to that: YES.
And the good news is that there are lots of beautiful properties from which you can easily make a choice. Some are small, some are large. Some are located on the Left Bank, some on the Right Bank, some on the islands and some in the countryside. They are offered by different developers and various individual owners (resale shares). Each has a different usage calendar, a different investment cost and different maintenance costs. But no matter how you shake it, owning a share of a real property will be one of the smartest things you ever do.
The benefits are limitless, but just so you don’t have to think too hard, let me name just a few:
1. Property in France steadily increases in value. Look how over the last 10 years, property values have increased about 2.3 times in France!
If the money you invest in a share of a property was instead sitting in a bank, how much interest do you think you will earn? At today’s rates, under 1%!
Let’s put that in real terms. Imagine you have $100,000 in the bank. Over the course of 14 years, it’s gaining 1% interest. At the end of the 14 years, you will have $110,462.21, or $10,462.21 more than you started with.
Now compare that with a share in a property in France. You invest $100,000. Over the course of 10 years the property increases TO 2.3 times the original value, or $230,000. That’s a compounded increase of 10% per year!
2. Meanwhile, you have the usage of the property while you’re visiting France!
3. And you will be saving the cost of a hotel or rental of an apartment (that is happily owned by someone else who is using YOUR MONEY to fund their investment!).
Ironic, isn’t it? And pretty silly. It might as well be YOU enjoying the benefits.
So, here’s how it works:
You purchase A SHARE (or more) in a luxury property that suits you. The shares can be any sort of fraction — one-twelth (one month each), one-thirteenth (four weeks each), one-fourth (three months each), etc. Your share equals the amount of usage per year to which you will be entitled. (HINT: Never, never, never, agree to having more or less percentage of usage than to your ownership!)
You and the other owners share in the cost of maintaining the property. That means that the costs of utilities, management, taxes, maintenance, etc., are shared by all the owners, just like the owners do in a condominium or co-op of the common areas. Except in this situation, it’s ONE property, not many. Fortunately in France, cost of ownership is very low — property taxes are minimal compared to taxes in the U.S.
A professional manager takes care of the property. All you have to do is unpack your bags and make yourself at home.
The only other responsibility you have is to jointly make decisions about the property — usually in the form of an annual meeting of the co-owners at which times various issues will be discussed and voted.
It’s that easy.
If you decide to sell your share, you sell it just like you bought it, and you can price it as you like — so you can earn as much or as little on your investment depending on ‘what the market will bear.’
In fact, the ONLY downside is that the money you invested is not entirely “liquid.” So, don’t go putting ALL your money into a fractional property, but do invest what makes you feel comfortable…and really satisfied.
The first property we developed ourselves is “Le Palace des Vosges.” It’s the largest and most luxurious of all the properties we offer for fractional sale. I found this jewel in the historic four-hundred-year-old Place des Vosges myself through one of our trusted agents, recruited the investors, brought in our finest Interior Architect, Martine di Mattéo and renovated and decorated it ‘to the nines.’
There are 13 four-week shares, seven of which are currently available. The four weeks can be taken together or six months apart and the calendar rotates forward by 10 weeks every year. With a fully rotational calendar, owners are free to trade weeks among themselves.
The current owners are the most cohesive and amicable group of people I have ever witnessed. They regularly gather outside of their stays at “Le Palace” and every single one of them simply ADORES the apartment!
But who wouldn’t? It’s 81 square meters with two bedrooms, two-and-a-half baths, 4.5 meter high ceilings, a gourmet kitchen ‘to die for,’ magnificently furnished with antiques and original paintings, all set on a gorgeous and amazingly quiet courtyard with a view on the Hôtel de Sully. Not bad, right? A share is a bargain at 138,900€.
Two other properties of note are those offered by “Paris Fractional Ownership.” The hottest one on the market is called the “Jewel of the Seine.” Located next to Notre Dame on the beautiful historic Ile-de-la- Cité, this ‘jewel’ is a two-bedroom, one-and-a-half-bath apartment with impressive views of Notre Dame on the banks of the Seine. This is “Kilometer Zero” from which all points in France are measured. The location is absolutely dead center heaven.
If all you want is two weeks a year, then you may particularly like this property — as there is no limit to how many or how few two-week shares you purchase, ranging from as little as 39,900€ to 59,900€ depending on which weeks of the year you choose.
Another offered by “Paris Fractional Ownership” and also on “the island” is “Le Notre Dame.” A spacious studio apartment with a view on Notre Dame, exposed oak beams in a centuries-old building provides total charm. Shares are sold as two two-weeks blocks of your choice, ranging from 14,900€ to 34,900€, again, depending on the weeks of the year you choose.
Still, for as little as 29,800€, you could spend four weeks a year in Paris on the Ile-de-la-Cité next to Notre Dame in YOUR OWN APARTMENT! That’s ridiculous, right? A rental apartment in Paris of equal size and location could easily cost up to 5,000€ for the same four weeks! Six years of coming to Paris pays for the investment entirely!
So, let me ask you one more time: Wouldn’t it be absolutely delightful to have YOUR OWN real home-away-from-home in the world’s most beautiful and romantic city or in the French countryside that is totally hassle-free, yet makes a good investment?
There is only one answer: YES.
There’s more, though. Right now, there are two shares for sale by owner in two different properties that are ‘sold out.’ This is a perfect example of how you, as an owner, can resell your share, should you ever want to.
One is in “Chez La Tour.” This was developed by Paris Home Shares. Chez La Tour is a two-bedroom, two-bath large and spacious (88 square meters) luxury apartment near the famous rue Cler and the Eiffel Tower in the chic 7th Arrondissement. There are four one-month fixed shares currently available, but there is one in particular worth noting: the owner is willing to sell her November share for $155,000 — that’s $13,000 UNDER the current asking price and $4,900 UNDER the lowest priced month of the year (January)!
This special offer is exclusive to Parler Paris, Parler Nice and French Property Insider readers. And it’s only good for 30 days, too. So, don’t spend too much time thinking about this one before you act on it!
There’s another share for sale by owner in a property by Paris Home Shares to consider, too: “Villa Monceau.” Villa Monceau is a one-bedroom, 58 square-meter apartment located on the third floor in an immaculate pierre-de-taille building in the elegant 17th arrondissement, close to Parc Monceau and the Arc de Triomphe.
One of the owners wishes to sell her one-month share, but what’s really interesting about this particular share is that it’s one-half of a two-month share — when you purchase one month from the current owner, you have the flexibility to share the usage over two months with a partner shareholder — a great advantage! The recently passed months of usage are March-April, but usage migrates forward three months each year. So, the upcoming period is July-August 2013.
The asking price for this flexible and unusual share is: 82,500€. The owner with which you share the two months is totally flexible, so together you determine your usage. As I said, this is a BIG ADVANTAGE, not to mention a great apartment!
If none of these perfectly fit your idea of fractional heaven, French Property Fractional has lots of other properties from which you can choose. All you have to do is visit French Property Fractional to learn more about these and all the others.
And now you know I’m going to ask you one more time: Wouldn’t it be absolutely delightful to have YOUR OWN real home-away-from-home in the world’s most beautiful and romantic city or in the French countryside that is totally hassle-free, yet makes a good investment?
There is only one answer: YES.
A la prochaine…
Editor, Parler Paris