Property in Paris for Valentine’s Day

Paris is one of the most romantic cities in the world and this Valentine’s Day it’s highly likely that there will be pairs of lovers descending on the city from all over the world to soak up the atmosphere and enjoy Paris in springtime.

So what better time of the year to talk about property in Paris – after all, if you’re looking for that perfect Valentine’s gift, a property in such a romantic city would surely go down well!

Not only would a Parisian apartment go down well as a gift, such a property makes for an exceptional investment asset too, because there is strong short and long term rental demand in Paris as well as a healthy and buoyant property market where demand never abates…

In terms of what rents well – if you’re looking to let to the short term tourist then smaller can often be better.  Tourists are looking for well located real estate rather than spacious abodes when on holiday in Paris.  So if your budget will fetch you a three bed apartment well away from the most attractive arrondissement and only a studio flat in the likes of the 5th, 6th or 7th arrondissement, go for the latter option.

Small apartments are often referred to as ‘chambres de bonne’ or ‘maid’s rooms’ – and according to local agents, a better located ‘chambres de bonne’ will rent far more easily and for a better yield than a spacious two or even three bedroom apartment in a less attractive or central district.

The next tip for you if you’re thinking of buying a property in France and you want to make the best investment choice is look at the French Leaseback Scheme.  There are developments in and around Paris that qualify and you can save yourself the 19.6% VAT on property, you buy into a development with guaranteed rental income, an on-site management team looks after your property usually for no additional fees, and you’re even entitled to use the property for a set number of days a year.  The French Leaseback Scheme is ideal for those looking for a long term investment.

If you’re going to go it alone then learn to speak French!  Whilst Paris is a highly cosmopolitan city and one of the main areas of France where you will hear other languages spoken, it’s going to be far easier for you to search for a property, negotiate a deal and handle the entire purchase and ownership process if you speak French!

Another tip for those buying independently is examine any communal areas of an apartment block that you’re considering buying in to.  All owners have a financial obligation for the maintenance of everything from lift-shafts to roofs – so look at what needs doing, try and find out if there is a schedule of work and think carefully about the long term additional costs that you may be saddled with if you’re buying in an old building.

A great tip that was published in The Sunday Telegraph last week regarding Parisian property is looking at arrondissement adjoining the most expensive and desirable arrondissement.  For example, as mentioned the 5th, 6th and 7th are massively attractive and in demand – but the 13th, 14th and 15th actually adjoin these and can offer buyers massively reduced prices for just buying across the street!  The tip is, get a map, go to Paris and tread the streets marking down areas that you can see that are up and coming, areas that you can see potential in and maybe even slightly ramshackle streets that join or run parallel to the more fashionable districts.

Finally, there is some good news for overseas buyers of property in France – including property in Paris…non-residents who buy into the French real estate economy effectively get a 50% reduction on Capital Gains Tax when they come to sell.  CGT for residents is up to 32% - but for non-residents it has been lowered to 16% - and if you hang on to your property in Paris for 15 more Valentine’s Days you will avoid having to pay CGT altogether!  Great news for the financially astute romantic!