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 a French vacation provider "Pierre & Vacances" and the French government. The rate of return was low but guaranteed. 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. 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.