All Forum Posts by: Sarah M.

Question (sort of related to this thread, sort of not). I read sometimes on Bigger Pockets about how people from outside the US invest in US real estate as it provides better returns than in their home country.

a) At what point would someone consider investing in the US if they are outside the country? What type of returns would make sense?

b) How much risk tolerance would someone need in order to invest in another country?

I think the same could be said about those from the US who invest in other countries.

I've seen ads for investing in the US or Berlin, promising 10% for the first few years (afterwards maybe 7%). I'm a US citizen as well so can easily do this, but I am hesitant not to be in control and let someone else manage my affairs from far away...and then again, where do I start? Perhaps if I had a close friend with first hand knowledge of where to buy/how to manage I might consider this, but since I don't I find it too risky.

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Originally posted by @Thierry Van Roy:

Take the 6000 EUR per annum. Now let's see...

1 month vacancy = 500 EUR (if you're lucky)

Provisions for tenant change = 400 EUR

Repairs = 500 EUR

Insurance = 110 EUR (Really? Is that all?)

Taxe foncière = 700 EUR (don't really know for France, don't forget local taxes)

Prélèvements sociaux = 775 EUR (after taxe foncière, 15,5%)

And then there's still the income tax in which you rise in your tranche. I'm already at around 3.000 EUR. You can get it down to about 1.000-1.500 EUR if there's no tenant change and whatnot, but then I can only wish you good luck, literally.

Just saying...

But in any case, you are right to say it would be better to put it in real estate than in the bank. If you're happy with this revenue, then I would at least recommend you to look for a multiplex (3-7 units) if at all possible. The 300.000 EUR would allow you to get one in a certain price range for which there is a lot less competition (in The Netherlands and Liège, between 400.000 EUR and 1.000.000 EUR). Sellers are getting desperate there. A bank will give you a mortgage for an income property like that, they'll only look at the numbers and what you propose to do with it.

I don't like sharing buildings with other investors/owners, the multiplex offers benefits of scale, the mortgage gets paid off at a historically good rate and that will get you some tax benefits as well.

Many thanks for this. I might look into this. Nice to find someone here who understands the French market. I don't think there are any quick get rich schemes in real estate, but I always considered it more solid than anything else. I might hit you up for more specific questions. Is seloger still the best place to look for property including multiplex? Merci!

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What do you include in operating costs? Tax fonciere, repairs? That's all I can think of cause tenant pays the charges. Repairs I've had no cost what so ever so far. I guess that is an advantage of buying a property in perfect state. It costs more to buy but we know that we hate renovations and have no time for this between jobs and kids.

There are lots of opportunities for investment with much more than 5% return, but it doesn't come cheap- cost is your time to look for it, study it etc. I don't have this. The reason I like real estate is that it is solid and physical. Not money in a bank that could flop one day. Whatever happens that property will always stay there. It may go up and down in value but it will always be a roof over my head. I like physical investments.

Back to my original question if you don't mind, if you had 300K what would you do?

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Well the market in France is still not as high as it was in 2008, and yes there is talk of it going even lower, but anyway life happens while you wait and I plan to buy to hold for a long time... The area we are looking to buy is south (Var). I don't know how you go from 5% to 3% but we manage our tenants ourselves. Insurance is 110 euros per year...so only tax fonciere. We are looking to do this in order to build revenue streams for the future & retirement, but of course use now as well. Leverage is because we have free professions and French banks do not give loans unless you have a CDI, which I also never want to have ;-)

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Hi I am new and just thought I' d jump right in. Background, we own one flat in France where we have 100% equity and a great tenant in place. We have our niche, the town in France where we already have one property and know the market like the back of our hand, hence to simplify life want to continue purchasing there.

We are interested in owning several properties and not complicating our lives too much with many loans, flips, or renovations. We buy quality flats and my rule is- would I want to live there myself?

So we have saved a bunch of money and wondering what to do. Immediately I think buy another 1 bedroom flat. Te market is low in France now, so I can buy a nice flat for 100k and immediately rent for 500 per month. Not the best return, but solid and can only go up.

Then say in 2 years time we want to buy our principle residence, say a private home....

I have started to think about leveraging since we have equity, but how should this be done? Should I buy the second flat cash and do leveraging later for subsequent purchases ? Or leverage now our first flat? Money s doing almost nothing in the bank, so I am thinking buy cash now.

Also in France to leverage requires a lawyer and documents for the bank which cost around 3 k so not completely free...

Also I don't like headaches and don't want to deal with buildings or many tenants....simple, even if it means less money. Merci!

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All Forum Posts by: Sarah M.

Sarah M. has started 1 posts and replied 6 times.

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