THE EXPERT PROPERTY-FINDING SERVICE FOR PARIS
Press archive
Cheap and chic
This article appeared in Evening Standard Homes & Property
Wednesday 5 October 2005
Invest in Paris and get lots more for your money
Paris has cheaper property than the UK, with growth of about 10 per cent a year in a steady market and a high demand for rented accommodation, making it a sensible buy-to-let investment. Buying is fairly straightforward in a system that prevents gazumping; council tax and service charges are reasonable and buy-to-lets can be managed from the UK by a bilingual Parisian letting agent. And Paris is easy to get to. There are 20 districts (arrondissements), so set your budget, decide on who you are aiming at, and buy a property to match.
Tourists
Tourists constitute a lucrative source of revenue for buy-to-let properties. However, both demand and supply are high in this market. To stand out, you should decorate and furnish your property to a high standard. The best buy is a two-bedroom apartment, since there is a shortage of these among letting agents. Tourists’ favourite locations are le Marais, la Bastille, Saint Germain des Près, the Latin Quarter and Montmartre, and there is growing interest in Canal Saint Martin, an trendy area in the 10th district.
Corporate tenants
The corporate market is another good option for the buy-to-let investor. Business people are often happy to walk to work, so the best areas to look at are around the Champs Elysees (8th arrondissement, the south-west part of the 17th and the 16th districts, or around the Bourse (the stock exchange). Corporate tenants working at La Défense (the large business centre just outside Paris) might prefer properties next to a Metro station on line No. 1 or the RER (fast metro), which provide a direct route, with a journey time of 10-15 minutes. Furnishings need to be of a high standard, with business facilities such as Internet access.
Eurostar users
Some visitors like to rent within walking distance of the Gare du Nord (10th arrondissement). Consider other areas with metro accessibility to the station, such as Châtelet or Bastille.
Studios are in demand
Renting to students and young professionals is a fairly reliable source of revenue. Studios are in demand everywhere by this target group, so you will be able to rent out all year. Studios can be let out either furnished or unfurnished. For this target group it is acceptable to furnish and decorate to a fairly basic standard.
Right or Left Bank
The right bank is more gentrified and business-orientated and includes the most historical areas of Paris, Ile Saint Louis and Le Marais. The left bank is more bohemian, comprising the Latin Quarter and Saint Germain des Près. For tenants who prefer living near parks than lively street-life, the areas near Bois de Vincennes in the south-east or the Bois de Boulogne in the west are ideal. As in London, property near parks is more expensive, but you can charge more rent as a result.
Financing your flat
A British building society will usually lend you the money by re-mortgaging any property you already have in the UK. The most common type of mortgage in France is the repayment mortgage, so you can adjust the term to match the monthly payments to your income level and the rent you are expecting from the flat. Examples of banks that have bilingual staff used to dealing with English-speaking foreigners buying in France, are Abbey National France and Crédit Agricole International.
