All Forum Posts by: Thierry Van Roy

@Erik Noordam

Unfortunately not, it's a bit of a long trip just for the course. We are trying to get enough people here for them to come to the South of the country.

I will be at Provada though!

It's funny when you invest in The Netherlands like I do. Weed is legal in-doors (and users are very normal young people), but it's still hilarious how embarassed tenants are when the smell is still hanging around while you inspect the unit. (Less legal is growing weed. We had a REIA meeting last Thursday, about 20% of those present have had a weed farm in one of their houses. Damages from 10,000 to 80,000 EUR and not always covered by insurance.)

I once visited a unit occupied by a hoarder of old vinyl records. There were literally thousands of them, stacked from floor to ceiling. The unit itself had become invisible. One floor up, another unit, we were greeted by the tenant's ax.

Yeah, we get you're still looking at France despite it not being a wise investment by any standard. Have you decided between a Paris apartment of 30,000 USD/sqft and an isolated chateau yet?

Any European certified bank will lend for French real estate, though in reality the French banks are of course more inclined to do so. The process is pretty straightforward, just walk in. Some French banks target international clients, though they don't give loans to anybody, especially today.

Also, Europe has stringent financing standards. Expect at least 30% down for Paris, and that's if your credit is good enough for you to afford the negative cash flow. If you want to hit break even, then put down about 60%. Rents might just cover the mortgage.

What @Aaron Mazzrillo says: what's your fascination with France? Read Immobiliez-Vous if you're really serious, it'll have you running away screaming from the French market.

If you're interested in buy & hold INVESTING, then stay away. You're better off in any European country other than France for the moment. The French themselves are investing in troves anywhere from Belgium to Florida, just not their own market, for good reason.

I can't be more clear than that. If you adhere to the principle "first you buy your market", then don't buy France. But if you really want French property as a buy & hold in order to perhaps relocate or have as a second home in the future, then you might, but it still depends.

Studio's in Paris are a no go, but manors/mansions/chateaus you can actually get for pretty cheap, even if they continue to be priced high. The buyer pool has dried up, so you should be able to get a deal with a 30% (or more) discount.

Now, France is a big place, so pick your favorite location first. Then, watch out with manors/mansions, these can sometimes even be pre-1800. Lots of rules, regulations, upkeep and operational costs. A real castle can require hundreds of thousands of euro's a year. Trust me, I've lived in one (long story).

Also, a lot of places just won't rent. Some isolated villages, for example. But they're the dream of many a francophile European, which is why a lot are running a B&B or even AirBnB business from them in their golden years right now.

If that's what you're planning to do eventually, then you don't need to look at it to cash flow. But still, try getting it to stay somewhat break even.

@Engelo Rumora

Thanks, I keep myself posted on my surrounding markets, I also have read books on the French market from the past two years. (Oui, on peut dire que mon français c'est presque impeccable.)

That place sounds possible if you're really into the market. Three hours can be anywhere, though. You can cross the entire diameter of a country like Belgium or The Netherlands in that timespan. Heck, Brussels is only 1.5 hours from Paris by train (no, Brussels is not the capital of Paris). Doesn't change the fact that France is not a good investment.

As I have said in other topics, many French have put their money in real estate for the last 5 years because of the crisis. Same thing in Belgium. It has artificially ballooned the market and now there aren't any buyers left. Basically, it won't last. The only ones really putting money into Paris (and I really had to look) are big funds who like to advertise how they invest in "London, Paris, NY". Yet they make their money elsewhere, naturally, it's just a bit of prestige to them.

My beef with Paris is this: I can get a nice investment opportunity in The Netherlands for the same price, which covers her rent and then some in Paris. She's obviously fine with that solution, it gets her an apartment of twice what the same kind of money would buy her.

... Seriously? I know you're not inquiring on investment advice, but...

I tried getting an apartment in Paris for my sister, yet the prices are ridiculous right now. Just google it, especially if you know French (which I hope you do) you'll see prices are set for a big downslide. I went through all the hoops I could - fixer-uppers (yes, they exist), colleagues, befriended brokers, viager, notariat etc. But this just isn't the market for investing anymore.

Expect to pay 10,000 EUR / m² (about 40,000 USD / sqft). If you go to the arrondissements from 10-20, then it's less but you are basically in the banlieues by then. Not recommended. As the saying goes: better to have 100sqft in Le Premier than 1000sqft in Le Vingtième.

Rent for a studio starts at 600 EUR (again, arrondissements 1-10 but you pay the difference in taxis elsewhere), might go up to 900 EUR. But even then, you'll be paying at least 300,000 EUR for a basic studio.

The government knows prices are ridiculous, so they're planning a major "social development" scheme. That'll make prices tumble even more than the market has already induced.

There are hardly any buyers these days for a reason. Unless it's your intention to eventually own the studio as a primary or secondary residence, just leave this market alone, at least for the coming year (see how the market has gone by this time next year).

Good thing I said it can vary geographically, because that is their job where I'm operating. Though its your job to make sure you pick the right people of course and don't leave a stone unturned.

I would be looking at either modular or repurposeable construction if you have to construct something. That would give you an exit scenario. As @Joel Owens says, the bottom has fallen out of this market, office space is going the way of horse stables.

This might be a stupid idea in your case, but have you thought of moving outside your market if nothing can be found nearby? Don't know how local your business is, but you might be cheaper off doing so.

@Jeff Greenberg

Hehey! I got it to work! Though the browser wasn't the issue, it was still the keyboard. Don't know why it's working now, but if I switch to "US" in between, I can do a TAB+2. Then I can pick a name and switch back to my default AZERTY. A bit tedious, but at least it works.

I used to be a web designer, so I take it there's something up with the WYSIWYG editor only recognizing one keyboard. Perhaps in the future a choice under "Settings" will be made available to forum users?

Lenders will be more interested in your criteria and how those match the market than an actual market survey.

My advice: create a pitch book rather than a business plan and start working on building and refining systems. Changing your mindset to this format will help you skip over a lot of unnecessary bull shiitake.