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I was recently contacted by an American couple who were looking to buy an apartment in Paris. They decided that it was time for them to have a ‘pied-à-terre’ in the most beautiful city in the world. They were approaching retirement age, had a sizeable nest-egg ready to be invested, and were not happy with the opportunities available in the New York real estate market (the city where they live) and had planned to buy a second property that they would rent now and give to their children later on. After reading numerous articles about the good value available in the Parisian real estate market, they decided to give it a try. Real Estate Values Compared to Other Major Cities "Any decent one bedroom in a nice building in New York would have to cost us at least $500,000. With maintenance costs, taxes, renovation work etc., this would end up being a more sizeable investment than what we were looking for and apart from the expected rental income, we would have gotten no pleasure out of the apartment for ourselves. At our age, we are looking to do things that will bring us some joy along with the return on our investments." Then they thought about Paris. This couple had often traveled to Paris either on vacation, or as part of another European trip, and they had fond memories of their Parisian visits. The idea that they could own a piece of the city appealed to them. The fact that today the costs of owning property in Paris are less than in New York, and that with well managed rentals, this could result in a net zero cost to them, made this choice extremely appealing. They asked me to give them some idea about prices in the Paris real estate market, the taxes, costs, and all associated fees. They also wanted some idea as to how much rental income a well-located Paris rental property could earn.

. Glenn Cooper has been living in Paris for the past 10 years. Cooper Paris Flats, his Paris based apartment rental agency, works closely with their US affiliate Rentals in Paris, LLC to provide visitors to Paris with a number of well located furnished apartments in the heart of Paris. He has spent a great deal of time learning the ins and outs of Parisian living and shares his experience with his guests while they prepare their trips and during their stay in the City of Lights. As an American living in Paris, he has learned to transfer the good aspects of the Parisian lifestyle to newcomers who are not yet familiar with all that Paris has to offer. "Beautiful furnished Paris apartments for tourists and business travelers.  English speaking staff available in Paris during your stay."  .Paris Apartment Rentals .

Paris real estate has been cheaper than New York real estate for a number of years now. At present, this is clearly the case, due to the lower prices per square meter in Paris compared to New York, and the extremely favorable US dollar/French Franc exchange rate. In the better areas in Paris (4th, 5th, 6th, 7th, 8th, 16th, 17th arrondissements) you could find a one-bedroom apartment in a fairly upscale nice building for $200,000. In local terms, at the present exchange rates of 7.8 francs/$US, this equates to 1,560,000 francs. Recent advertisements have listed one-bedroom apartments (about 40 square meters) in the better areas starting at about 1,200,000 francs. Prices are always negotiable, but if you see something that you really like, with the current market being what it is, don’t negotiate too much because you might lose the place that you really like. It is a sellers' market today, so when you find the apartment that really suits you, go for it. You will make up the additional cost over the many years of enjoyment the apartment will provide you. As in the United States, the similar common sense rules apply, and this holds true for the concept of 'Caveat Emptor,' or let the buyer beware. When purchasing property in Paris, New York, or Oshkosh, always make sure to have somebody that you trust, and who knows a bit about construction, have a look at your potential purchase. This should serve to put your mind at rest about the quality of the building, the work done to the apartment, and what future work will be necessary. Have this done before giving any money to anybody to avoid any surprises later on.

One additional word of wisdom, learned after taking part in a number of real estate transactions here in Paris, is that the buyer has the right to ask for the last several co-op board meetings minutes, resolutions and any extraordinary meetings that took place. You should ask the seller to give you the name of the building management company’s (Le Syndic in French) phone number. Contact them and explain simply that you are about to buy an apartment in the given building and even mention the seller's name to them. Ask if there have been any problems in the building. Their responses should confirm what the seller has told you. If not, be wary.

The Role of the Notary When Purchasing Property in France

In addition to the seller’s price, there is also a government transfer tax, called ‘Les frais de notaires’ or notary fees. In France, real estate transactions must be enacted by Notaries, often with no legal advisor for either party. Notaries play the role of legal advisor and both parties have the right to have their own notary present, at no additional cost to either the buyer of the seller. The first portion of the notary fees are simply government taxes, and the remaining fees are split between the two parties’ Notaries equally. The notary fees are sizeable and can amount to between 5% and 8% of the purchase price of the property. They are always paid by the buyer, so keep this in mind when estimating the price of a property.
 

The role of the notary is to verify that the seller is really the owner of the property in question, to verify the state of the building and any government mandates to take this building over by government control (only in rare cases when the building is considered to block some important government project). Recent laws require that the notary verify the actual size of the apartment via an architect’s drawing, that the pipes in the building do not have lead in them and that there are no termites in the building. Any of these can be legal grounds to annul to sale if the buyer wishes to do so. When the parties meet at the notary’s office the first time, it is the moment when both parties go to contract. The description of the property is read, the history of the property, the necessary information about both the buyer and the seller is

disclosed and the contract is signed. It is customary for the buyer to write a check for 10% of the purchase price, which is held by the notary and not given to the seller until the final sale date. There is usually a thre- month date set from the date of contract, which will be the final closing date. This gives the buyer sufficient time to get a mortgage for the property. At the time of contract, in the contract, the mortgage criteria are listed (interest rate, mortgage amount, etc) and if the buyer cannot find a mortgage that meets the criteria, then this will annul the sale, and the buyer will recuperate his 10% down payment.

Let the Work Begin

Assuming that all goes well, in about three month’s time, you will be the proud owner of your new Parisian ‘pied-à-terre.’ Congratulations. What to do now? Assuming that there will be at least some minor renovation work to be done, you should have some estimates done by some of the major construction firms first. They are not always the hardest working people, and sometimes they will keep you waiting, but at least their estimates will give you a basis for comparison. Don’t be timid. Ask everybody you come across if they know of good workmen. Ask your notary, ask your neighbors, ask the concierge of your building if you have one . . . .ask, ask, ask. You will eventually come across somebody who incites confidence in you and who offers you reasonable estimates for the work. Follow your instincts.

Materials cost less in Paris than they do in America’s big cities. There are a number of lower priced stores that sell medium to high quality tiles, stone, building materials, paint, etc. These stores are usually located in the suburbs, so plan to rent a car if you don’t have one and spend a day going to the various stores to pick out all that you will need to get your workmen started. Most stores deliver to Paris addresses for a nominal cost to you, further simplifying your life. For one example, I recently redid an entire bathroom, with all new pipes, a new shower, basin, toilet, new tiles on the floor and faux marble on the walls. The entire bathroom cost about $10,000. The same work in New York would have cost between $40,000 and $50,000.
 

When buying an apartment in Paris, verify the state of all of the pipes and electric wiring. These are the two areas that are often neglected in older Parisian buildings and this neglect can cause problems over time. Most owners will experience flooding either in their apartment or caused by their apartment to the neighbors below at least once every ten years. It is virtually unavoidable. The best you can do is to verify that your pipes are all in order, well maintained and not leaking anywhere within your own apartment. Needless to say, sometimes leaks occur within the walls, and you have to wait until somebody brings them to your attention to repair them. C’est la vie! That is what homeowner’s insurance is for. Make sure that you have taken out an insurance policy that starts on the day that you sign the final sale papers in the notary’s office, to avoid any nasty surprises.

Furnishing Your Parisian Pied-à-Terre

Once your workmen have finished the work and the apartment is the way you want it to be, it is now up to you to start purchasing furnishings. Obviously the choice of furnishings will be determined by your intended use of the apartment. Your furnishings should be functional, simple and immaculate if you are planning on putting this property on the rental market for tourists of business travelers to Paris. There are a number of stores in the Parisian region that offer suitable choices for this type of furnishing. There are Ikea, Habitat, the BHV and Conforama which are the main furniture stores in Paris and the suburbs. These stores are all moderately priced and offer good value for money and a wide selection of styles to choose from.
 

If you want to add some special touches to your apartment, you could go to the numerous flea markets located around Paris, or even plan some weekend trips to the country where you will stumble over a number of ‘brocantes’ or village garage sales of pots, pans, beds, dining room sets, door stops, napkin racks, dishes, etc. In these types of markets, one can really find some great items for an apartment that add a lot of charm and old world taste. You could also furnish apartments with items coming from stores like Ikea and then add accent pieces from these country markets to give your place a personal touch. To Rent or Not to Rent, That is the Question A number of owners of Parisian apartments have decided to put them on the market for short term ‘vacation’ rentals during their absence. This is a way for owners to recoup some of the costs of owning property in Paris. The growing demand for furnished apartments in Paris on a short term basis makes this an ideal solution for owners who want to be able to use their apartments several months of the year and earn some money when they’re not here. Well-located properties in good buildings that are nicely furnished can earn about the same price as comparable hotels in the same neighborhoods. Owners can either sign contracts with the various rental agencies that handle the administrative details involved with short-term rentals or they can handle the details themselves. Just keep in mind that when renting an apartment there are a number of things that can go wrong, and it is usually useful to have somebody available to take care of problems that arise in an apartment. Even if you choose to rent your apartment out from home, you should always plan to have a contact person in Paris, in case anything goes wrong. In most cases nothing does go wrong, but you never know . . . .

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