Some of the pessimistic news in the 2012 media has probably reached you and we would like to share our viewpoint on the subject in this newsletter.

To cheer you up a little, we would like to correct any false idea that buying rental property in Paris is no longer interesting, by giving you some examples with figures of apartments our agency has rented out during 2012 through our exclusive rental contract.

Apartment of 30sq.m  Lepic/Norvins neighbourhood Paris 18e

Monthly rental

Net rent paid to owner : 19.200 Euros/year

Apartment of 20msq.m  Mazarine/Les Grands Augustins neighbourhood Paris 6e

Short term rentals

Net rent paid to owner : 15.925 Euros/year

Apartment of 35sq.m  Abesses neighbourhood Paris 18e

Monthly and short term rentals

Net rent paid to owner : 17.000 Euros/year

Of course, these are only a few examples of our rental properties and the possible return on investment. As you can clearly see, there can be major variations based on the type of rental (short or long term), neighbourhood, the quality of the building itself, the view from the apartment, the floor level and the level of service offered. But we are talking net rent paid to owner, which means you only have to deduct your property tax and usual costs for building upkeep that you would pay in any case. We have already deducted our fees for check-ins and check-outs of tenants, charges for cleaning and any bed sheets / towel changes, etc. If you are a French resident and pay your taxes in France, per our latest information, you could still benefit from a global 50% reduction on your rental income if you have the status of « loueurs en meublés non-professionnels » (please obtain specifics about this status from a tax consultant to make sure it applies to you).

Taking the example of an apartment in the Montmartre neighborhood you would buy for approximately 10.000 Euros per sq.meter, this property would still finance itself over a period of 20 or maybe 25 years.

During the current financial crisis this is rather encouraging, the interest on mortgages being historically low now with French banks.

If you do still hesitate about this rather intelligent way of creating real estate property for you and your children, we can give you pertinent advice to make sure you choose the right apartment in the right neighbourhood. Same goes for any necessary renovations we can take care of with the help of our Architecture and Interior Design crew.

As you can see, investing in rental property in Paris is still a good choice for 2013.

Yours sincerely.

Siegfried Knebel

Property Sales and Acquisition Manager

Les Studios de Paris