Buying the apartment immediately became my number one project. The first questions to arise were: Most importantly, did I want to own a piece of Paris -- how permanent a resident would that make me? If so, then is it a good investment? What price is reasonable? Can I get a loan? Can I afford it? Who can I trust to help me? 

Nine months later (equivalent to giving birth!), I had the answers and I had the apartment. If you are considering owning a piece of Paris, then possibly what I learned in nine months, you can learn in these one thousand or so words:

As it turns out, the Marais, and particularly my part of it, the 3rd arrondissement, had become one of Paris' wisest investments. Prices had risen 14.7% over the previous year (first quarter 1999 to first quarter 2000), 5th highest in the city. The highest rise in prices per square meter was in the 1st with 18.9% and lowest was in the 18th with 7.3%. Either way you look at it, real estate in Paris was on the rise with 15 out of 20 districts showing an increase of over 10%.

The most expensive district in first quarter 2000 was the 7th with an average of 28,275FF/m2 (per square meter), followed by the 6th at 27,858FF/m2 and the least expensive was the 19th at 12,346FF/m2. 

In France, it is necessary that a "notaire" record the property deed. The notaire drafted the "promesse de vente" or "promise to sell" contract allowing two to three months to obtain a loan plus I provided a deposit of 10% of the purchase price, kept by the notaire until the completion of the sale. If a loan cannot be obtained and the sale should "fall through," the deposit is returned. If the sale is completed, the deposit is deducted from the final sales transaction.

The notaire provides a variety of other services, too. He collects all the administrative and town planning documents needed to complete the sale, he checks the seller's financial and mortgage position, and repays any bank loans and, where relevant, sums due to the manager ("syndic") of the property, by deducting the proper amounts from the sale proceeds. The notaire fees, most of which are actually tax assessments, are added to the cost of the transaction. Be prepared to pay up to 10% of the purchase price in these fees!

I sought out a notaire who could speak English to get me through the "rough spots." I discovered that some notaires take advantage of foreigners by leading them to believe that their transactions cost additional fees. This isn't true, so be careful whom you choose. Ask your friends till you find good references and then interview each of them. 

Next was to obtain a loan. I made an appointment with my personal agent at my bank in Paris and discovered "tout de suite" that if I didn't have a salary deposited in the bank monthly that I wouldn't be considered.

My bank immediately said no, they would not lend money on property outside the US. My accountant crunched the numbers and told me what kind of loan I could afford. My attorney offered a way I could take out a business loan and my US business would buy the property. Still, it was expensive at US interest rates of about 9% and complicated in having to set up the legal aspects of the deal. I considered it rejection number two.

Then a close (and wise) friend asked one simple question: "Have you thought about asking at the British banks?" No, I hadn't! Turns out, these lending institutions make loans available to international customers. 

I visited three banks: Woolwich Bank, Abbey National and Banque Transatlantic.  All have agents who speak English, of course. Banque Transatlantique was not interested in working with me as I was not a customer of the bank with a large "portfolio." Both Abbey National and Woolwich had very creative loan options and were happy to take my application.

My loan application was accepted by one of them and the closing of the sale took place without complications and to everyone's satisfaction, especially mine. I now have a little piece of Paris I can call my own and I wouldn't trade it for all the square footage, king-size beds and walk-in closets I used to think life was all about, Stateside, that is.