(Partner article) Vincent left France and lives in the United States with his wife and two children. He tells how he bought his three rental properties in France without needing to return.
Is it possible to invest without taking risks and without knowledge?
Vincent : We really didn't know how it was going. I am a beginner in the real estate field, and in addition I am in the United States. Not knowing much about it, I went through My expat who informed me enormously on the ins and outs of a real estate investment.
Did you have a strategy in your real estate investment?
V : The idea was to invest in stone in France. Talking about my projects to a friend, he advised me on rental investment and I liked this principle.
My investment strategy was that of neutral cashflows: all costs (management fees, loan repayment, etc.) should be covered by rental income. I learned more about furnished rentals and decided to invest in LMNP (non-professional furnished rental). This status allows a number of tax advantages.
In which city did you invest?
V : I invested in Paris because it is a city that I know. In addition, between students and young professionals, the rental demand is strong: I knew that my property would be easy to rent. Paris is also a guarantee of stability in terms of the value of the property over time.
Have you encountered difficulties in your project?
V : Finding a bank willing to finance me as an expatriate was the most complicated step. My expat put me in touch with a broker to help me find a bank with attractive rates. So I was able to finance my three investments with the same bank.
I did not expect the amount of administrative documents that had to be signed. Jet lag can also make the process a bit more complicated. Other than that, it was really a success, I didn't have to go to Paris once.
What is the return on your real estate today?
V : With my three real estate investments, I have an average net return of 4.7%. I calculated it based on my personal contribution after deducting all sources of costs and including leverage. This is an average: the apartments that I have financed 80% with debt have a yield of 7.5%. For the one where I only borrowed 20%, we are at 3.8%.
Do you have any plans to reinvest in real estate?
V : I'm going to take a short break but I may well be investing in this type of property again. There is a real demand in Paris, all my goods are rented in less than a week.
My expat is the first French rental investment platform. Registration is free and without obligation and you have access to the best real estate opportunities in several French cities, without ever having to return to France. Convinced · e? Contact My expat today.
Note: the “partner articles” are not articles of the editorial staff of French Morning. They are provided by or written to the order of an advertiser who determines their content.