The Paris property market is booming. Values were up 6.6 percent across Paris as a whole for the first half of 2017, compared with the previous year.
Global interest in Paris continues, from both investors and tourists, the horrible terrorist events of the past few years notwithstanding. The world’s rich and famous do and will continue to come to Paris regardless. This city’s ancient buildings and monuments have stood as a living symbol of the good life and will continue to represent a lifestyle that for many is as good as it gets for centuries more.
[Read: How to Afford Retirement in Paris.]
It’s generally a good idea to rent before buying in a new destination so that you can be sure specifically where you want to live before committing. However, real estate values in Paris are moving up quickly right now. While prices go up and down, as they do everywhere, Parisian real estate is viewed by some as a reliable store for long-term wealth.
The three critical criteria behind any good purchase are location, price and characteristics. If you’re thinking about entering the Paris property market, here are four things to know:
Scout a good location. Location is about both the arrondissement and the neighborhood. Look at things like proximity to food shops and open markets. It’s easier to get around if you are located near Metro stops and train stations. A location near parks, gardens and areas for jogging is important both for your personal enjoyment and also for attracting renters.
[Read: How to Retire in Europe on a Budget.]
Consider the characteristics of the building. The building’s façade, stairwell, elevator (or lack thereof) and courtyard can play a role in the desirability of a property in addition to the apartment itself. Valuable characteristics in a Paris apartment include things like parquet, moldings, fireplaces, shutters and original fixtures and hardware. A cave or underground storage place originally intended specifically for wine is another good characteristic.
Keep an eye on the price. If you’re looking to make an investment in a rental property, note that the 6th arrondissement is the most expensive in the city for a reason. This is where all the tourists want to be, meaning a rental here will always find a tenant. The buy-in is hefty, but the occupancy rates can compensate. The 6th is also where some Parisians want to live, thanks to shopping and access to amenities like the Luxemburg Gardens. If the 6th is beyond your budget or if you’re looking to buy up-and-coming rather than in-the-spotlight, consider the 17th near Parc Monceau or the 14th near Parc Montsouris. These neighborhoods offer some of this city’s best current values.
The most expensive addresses in Paris are found in the 6th, 7th, 1st, 5th, 3th and 8th arrondissements, in that order. Prices are recorded and reported religiously and reliably by the Notaires in Paris, so it’s easier in this city than in other places in the world to have an idea of what you should spend for a property in the area you want to buy.
[See: 5 Top Options for Affordable Retirement in Europe.]
Rent first before investing in a Paris pied-à-terre of your own. It’s much harder to access the unfurnished rental market in France compared with the furnished market. It’s difficult for an owner to evict a tenant in an unfurnished apartment who stops paying rent. As a result, owners of unfurnished apartments tend to exhaustively evaluate potential renters. The experience for would-be renters can be frustrating and even insulting. You’ll need to prepare a dossier to make the case for why you’re a trustworthy candidate of character. You may even need a guarantor. In addition, to rent unfurnished, you’ll need a bank account, which can be difficult to get without an address in France. However, it’s simpler to rent a furnished apartment. Rental payments must be made in cash or by bank wire. Credit cards are generally not accepted.
Kathleen Peddicord is the founder of the Live and Invest Overseas publishing group.
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How to Find an Apartment in Paris for Retirement originally appeared on usnews.com
