Paris is what it is, Paris? The one city that, even if you’ve never been, you’ve certainly heard of it. Labelled the fashion capital of the world, it is home to some of the world’s most elite fashion designers and models. Besides that, Paris has come to be associated with the film industry, priding itself for being the ancillary centre stage for the annual Cannes Film festival. But that says very little about the property market there. Is it worth it, and most importantly, how willing are the many millionaires in Paris to do business with you if you wish to buy Paris property? They say real estate is a gamble, and it is. However, if you do your homework, it should be a breeze.
What are You Buying Into
Ask yourself, What is my target clientele? Investing in property is always dicey because one cannot easily reverse property acquisition transactions. For some it’s even trickier because they would have taken years to build from the ground up, only to find it difficult to secure tenants at a later stage. Which is why you must make a list of your target clientele. Are you looking at backpackers and free-spirited tourists who don’t pay much despite being the most regular visitors? Do you want a chunk from the hundreds of film and fashion festivals that are held there every year? It’s all a numbers game, that is, ensuring that your numbers add up at the end of the day. The former requires much less in terms of capital investment, while the latter demands more.
Hold Your Horses
Property investments are not the kind to make when you’re drunk on tequilas. Of course, you might feel like it, but it doesn’t mean it will be as profitable as it was during your drunken stupor. There should be a difference in approach for when you’re buying in cash and when you’re working with a mortgage bond. Apart from the deed transfer process, cash is pretty straightforward. A mortgage is a lot different though. There are several kinds of mortgage bonds which all vary depending on your current financial position -assets or otherwise. Discuss the different options beforehand to be certain as to your ability to cope in a worst case scenario, like foreclosure.
Last but not least, don’t forget the real estate broker. It’s often tempting to cut out the middleman in an endeavor to cut costs, but you won’t be doing yourself any favors either. A real estate broker knows the market at heart and is best placed to advise you on matters that don’t fall within your professional knowledge.
