Expert Insight, Breaking News, and Insider Stories on Real Estate in Paris
Want to own your dream apartment in Paris? Here is everything you need to know.
Paris Property Group has built a top notch team to assist non-resident buyers achieve their dreams of owning real estate in Paris. Whether you’re interested in taking advantage of the 20-year record low currency exchange rates available today, obtaining a low interest fixed-rate mortgage (still well below 3%), or renting your property out for income when you’re away, Paris Property Group can help make the process easy and enjoyable.
Obtaining a mortgage in France
Interest rates in France still lag behind the rates of many other countries. Current rates are 2.6% for non-resident US buyers, for example. But it can be difficult to obtain a mortgage if you are over 60, or have variable income. Here are more details:
Euro mortgages for US and other non-European buyers
Euro denominated Home loans up to 70% of the purchase price.
Principal and interest mortgage loan.
Duration up to 25 years.
Rates fixed for the entire duration.
Current interest rates stand at 2.60%
French mortgages are serviced from a French checking account opened with the lender.
There are no restrictions as to how the French property is used (pied à terre, rentals, etc).
1st charge security on the Paris apartment
Term Life insurance underwritten by a French provider assigned to the lender
Borrowers must be under 60.
Borrowers must be able to evidence US Taxable income (W-2, K-1, rental income…). Debt to income ratio cannot exceed 33% in other words, the amount of all monthly credit and mortgage payments cannot exceed one third of total household taxable income.
Borrowers must be able to evidence sufficient savings to cover a 30% equity downpayment plus closing fees.
For purchases in excess of €2 million
Euro denominated Home loans up to 100% of the purchase price.
Duration up to 20 years.
Interest-only mortgage loan.
Current interest rates stand at 2.80%.
Interest rate type: Euribor + spread.
1st charge security on the Paris apartment.
Pledge on an investment account with a minimum gross value of $1m deposited with the lender.
No age restrictions
French real estate must be held by a French LLC (SCI or SARL)
Borrowers must be able to evidence US Taxable income (W-2, K-1, passive income…) and/or significant financial assets
Jonathan and Danielle M. a couple from Phoenix, Arizona, 40 and 37 year old.
The couple found a perfect 2 bed apartment ideally located on rue d’Assas on the left bank, a short distance from the Jardins du Luxembourg with a purchase price of € 1,440,000
They had a substantial deposit but were keen to borrow in euros to benefit from low interest rates and tax benefits. They also wanted the confidence of some support with the purchase.
Financing solution engineered by Bluesky Finance :
A 70% Loan to Value euro denominated mortgage loan
25 year term
Fixed rate of 1.80%
Opening of Checking accounts and property insurance
No pledged financials
Monthly payments: €4,142 fixed for the entire term
Mr M. and Mr W. , a couple from Philadelphia, PA. 50 and 47 years old.
These clients seized an opportunity to purchase an apartment in the sought-after 6th Arrondissement.
Facing a competitive bidding process, our clients decided to make a cash offer. The property was purchased rapidly with funds originating from a margin loan secured on a US investment portfolio. The couple were keen to lock a low long term fixed rate to refinance their margin loan.
One of our clients’ requirements was to minimize the monthly loan payment as well as their upfront cash contribution.
Financing solution engineered by Bluesky Finance:
Delayed financing transaction funded 4 months after the purchase €1,200,000 loan amount 50% Loan to Value Loan type: Capital repayment 20 year fixed rate: 1.75% No Financial collateral
Sorting out a complicated finance arrangement for this couple ensured their life in Paris is now the dream it should be. Living in the beautiful 6th Arrondissement means leisurely walks along the Seine exploring the pavement booksellers can be a daily reality.
Sorting out a complicated finance arrangement for this couple ensured their life in Paris is now the dream it should be. Living in the beautiful 6th Arrondissement means leisurely walks along the Seine exploring the pavement booksellers can be a daily reality
Finding the right property
Once your budget is set, we can begin the process of finding the perfect place for you. Since there is no central database of properties in France, and no agreement between agencies, every agency can only show you their own properties.
We’re different because we work as a buyers agent for our clients to find great properties that really fit their particular needs. This optimizes your time on the ground in Paris, ensuring that you only see properties that meet your criteria. It is critical in the current market where there are always more buyers than sellers and good properties move very quickly. We also do extensive due diligence on the apartment for you, negotiate on your behalf and see you through closing and beyond, connecting you with all the resources you need along the way.
Renovating, refreshing, or decorating your new place
Paris Property Group has an extensive address book of designers, contractors and architects for every budget and project scope. We can help get you set up quickly with a reliable partner that shares your vision for your new space. More information on the cost of renovating your Paris apartment here.
Renting your property for income when you’re away
Navigating the legal environment in France can be harrowing. Short term vacation rentals are forbidden in many larger French cities, including Paris. So how can you generate rental income from your property?
Paris Property Group has a rental partner arrangement that can generate an occupancy rate of up to 85%, for mid-length rentals that are completely legal for non-resident owners. You can have peace of mind that your property is occupied and looked after during your absence, while generating income for you, and minimizing the disturbances to your neighbors common with short term vacation rentals.
Care-taking your property in Paris when you’re away
If renting your property isn’t of interest and you want the peace-of-mind of knowing that your place is well-cared for while you’re away, we have a great solution for that too. Whether you prefer regular property checks, or a full concierge service, there is a price point and service level to suit your needs.
Whatever your needs, Paris Property Group can help you find the perfect solution. Contact us today for a free consultation on how you can achieve your dream of owning a place in Paris.