Apartment in Paris, France

[Jodi Tommerdahl]

Investment Info:

Single-family residence buy & hold investment.

Purchase price: $220,000
Cash invested: $45,000
Sale price: $240,000

This was an "apart-hotel" in Paris which was connected to both a French vacation provider "Pierre & Vancances" and the French government. The rate of return was low but guaranteed. It turned out to be a pretty bad deal but it was my first ever real estate investment. The French government is extremely difficult and unfriendly to real estate investors. In the end, the investment turned out to mainly be a savings vehicle. I'm glad I did it because I paid down a lot of capital and still made some money to put into something better now that I'm in the US and have learned more. It shows me that even a bad investment (to a certain extent) is better than no investment.

What made you interested in investing in this type of deal?

I was living in Paris and it was ultra-safe as it gave a guaranteed rate of return. I was overly cautious.

How did you finance this deal?

Normal French bank financing

What was the outcome?

A small increase in value over several years and principal paid down

Lessons learned? Challenges?

Enormous red tape and high fees related to the French government. I will avoid real estate in France from here on out.

Did you work with any real estate professionals (agents, lenders, etc.) that you'd recommend to others?

I would actually recommend that people stay away from this kind of investment.

[De Montaigne]

@Jodi Tommerdahl...We are sorry that our administration did not meet your expectations.
Knowing the French real estate market by my job and being myself an investor.
Advice in France avoid investing in a real estate program offering far too attractive tax exemption offers...
Better to invest in real estate individually in our country.