Buying an apartment in Paris and renting it from abroad: our 10 tips
Do you live abroad and are you planning to invest in rental real estate to benefit from additional income? Very good decision! Real estate is a very good investment to build a wealth over the long term. If this is your first purchase and you don't know where to start, don't worry: we've revealed 10 real estate hunter tips for buying an apartment in Paris and renting it from abroad!
1.Prepare your project well
The first step is to prepare your project well, all without having to travel to Paris. Your investment must hold up technically and financially. The advantage is that this preparation can easily be done remotely, especially with the help of an expert specialized in the Parisian real estate market. Check if:
Your project is technically feasible: are the area sought, the location and the budget aligned with the reality of the market.Your project is financially feasible: you must be able to borrow in France, and you should know that obtaining a loan is not systematic. Your debt capacity must also make it possible to finance your project.
2. Delegate visits to the property
Even to buy an apartment in Paris and rent it from abroad, you have to visit the property. Many investors ask friends or family, but those close to them may lack expertise. In addition, visits and counter-visits are time consuming. However, a number of elements must be taken into account to avoid unpleasant surprises when looking for rental property. In the capital, visits allow you to take stock of the situation and verify the quality of the property. If you live abroad, tools such as virtual visits exist. However, this solution has limitations since it does not make it possible to identify hidden defects. It is therefore recommended to delegate the visit to a real estate expert to ensure the viability of your investment.
3.Verify the profitability of the property chosen
The ideal way to invest in Paris from abroad is to choose a low-risk investment project. To do this, here are the 4 points to analyze:
Your contribution and the amount to be borrowed: use online loan simulations to determine the amount of monthly repayment payments.The surface area of the property: prefer a small area such as a studio or a T2 (one bedroom) since these are the most profitable properties in Paris. Smaller areas are often rented more easily, with a more expensive price per m2 and a lower budget.Long-term furnished rental (LMNP): by renting your furnished property (and respecting the other eligibility conditions), it is possible to pay no tax on your rental income in France for several years. Gross rental yield: 7% gross return does not exist in Paris. Be realistic about your expectations in terms of profitability.
4. Do not be afraid of construction
If you're delegating visits to a family member, tell them to focus on the outside of the apartment as well as the inside. Ask for supporting photos and videos. Also ask for the minutes of the last 3 years of the General Assemblies to ensure that the other owners pay and that work is carried out regularly. In addition, by carrying out some redevelopment work in your Parisian property, you can rent it more expensive and attract the best tenants. You thus optimize your return with a lower departure rate and shorter rental vacations. Some expenses are also deductible from your rental income, which allows you to pay less taxes.
5.Validate a financing agreement in principle with your bank
Have you defined your project and found a property that meets your criteria? You now need to obtain a mortgage to finance the purchase of your property. To do this, anticipate the necessary savings effort by setting aside 30% of the total amount of the property as a contribution. We advise you to borrow the maximum amount over the maximum period: the main interest of investing in rental real estate is to develop your assets (which constitute your personal wealth). The objective is to find the balance that suits you between a monthly repayment payment, which will be even lower as the personal contribution is significant, and the rent paid by the tenant.
6.Get support for notarial and financial procedures
Buying an apartment in Paris and renting it from abroad requires going through notarial and financial procedures. Fortunately, there are services that support expatriates in their investment project. These partners take care of collecting all the necessary information and collecting the powers of attorney. For the financial part, banks generally agree to work remotely thanks to the dematerialization of contracts to be signed.
7. Make a power of attorney for the authentic act of sale
It is possible to issue a power of attorney for the authentic act of sale. It must be signed at the consulate to be valid. As a non-resident, you can give power of attorney to an expert or family member. So, even to sign the bill of sale, you do not necessarily need to come to Paris from abroad.
8. Seize opportunities quickly
Rental investors need to be patient to seize the right opportunity, but they also need to make up their minds quickly as soon as they identify a good deal. The market in Paris remains tense and the goods sell very quickly. You have to remain pragmatic and know how to take action. Remember: the best real estate investment is the one that was made 5 years ago. On average, you have to keep a property for 8 to 10 years to take advantage of the leverage effect and reimburse the initial costs of the purchase. The sooner you take action, the better.
9. Take a rental management agency
Buying an apartment in Paris and renting it from abroad does not end with the purchase of a property: you must then rent it out with all the current management constraints that this implies. To simplify your task, sign a rental management mandate with an agency. She then takes care of everything: finding and selecting the tenant, collecting rent, inventory of entries and exits, representation at general condominium meetings, etc. To be at peace of mind, it is also advisable to take out unpaid rent insurance whose cost will be between approximately 2.5 and 5% of the rent amount depending on the contract.
10. Take action by calling on a real estate hunter
To buy an apartment in Paris and rent it from abroad, the best solution is to go through a real estate hunter. It will send you all the elements necessary to study your rental investment project: photos, videos, videos, plans, environmental videos, analysis, etc. The hunter is positioned as a trusted partner for your research. He defends your interests to find the perfect property according to your criteria and your budget. You save a considerable amount of time and you benefit from a peace of mind that is priceless. In addition, real estate hunters are only paid for success: they thus focus all their time and effort on meeting your request.
It is therefore entirely possible to invest in a rental in Paris while living abroad, provided you have the right reflexes and are supported by professionals in the sector. Tell me about Paris helps you find the rare pearl on the Parisian real estate market! Contact us to present your project to us.
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After several months of research (in a very targeted neighborhood), I decided to call on Parlez moi de Paris to get out of this spiral of visits that were not successful. An investment that proved to be very effective since I made an offer at the end of the 5th visit.
Great experience with Parlez moi de Paris. Patrick is a professional who accompanies his clients very well in the search for their future place to live. Very attentive, he creates a favourable environment that encourages exchanges with the various stakeholders.
We have established a partnership with Parlez moi de Paris for all the acquisition searches in Paris of our clients that we cannot support. I guarantee the seriousness, the sympathy and the expertise of Patrick and his teams. The research mission is carried out with efficiency and kindness. I recommend.
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