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The grand and elegant home of a famous designer
An article that explains the monthly expenses of a high-end apartment in Paris
Many clients often ask us about the cost of owning an apartment in Paris. Roughly speaking, there are four major expenses for holding an apartment: the expenses required for the operation of the apartment itself (property sharing costs, electricity and Internet fees, insurance, cleaning and maintenance costs for the interior of the apartment), major construction costs of the building, and taxes (land tax, residence tax, property wealth tax), and some other expenses (apartment rental management fee, butler service fee).
Today, we will take a high-end apartment of 100 square meters and a value of 2 million euros in the Saint-Germain district of the Left Bank as an example to explain in detail what the daily maintenance of the apartment will cost (do not confuse it with the cost of buying an apartment Oh).
01/ The cost of running the apartment itself
"Dry goods" Paris housing rental investment strategy first series
Buying a house for rent is the most direct way to invest in real estate. How to ensure the safety of investment, charge the highest rent, reduce various expenses, and obtain the maximum return is a question that all investors are concerned about and want to know the answer to. Redline Real Estate has launched a series of "Comprehensive Guide to Rental Investment", which is divided into four series, from the most basic of whether or not to rent with furniture, to how to avoid the Paris rent cap; from what expenses the landlord needs to bear, to how to file tax returns, Comprehensive coverage of key factors affecting your return on investment. Welcome to follow and read all the information.
Series 1: Rent Furnished or Unfurnished?
01 Is there a demand for quicker recovery of rental housing?
Furnished rentals can reclaim rental properties faster than unfurnished rentals
02 The gap in rent
Typically, rents for furnished rentals are 10-15% higher than for unfurnished rentals (using a 12-month lease as an example). This rent gap presupposes that landlords provide better furniture and condition, and that the demand for furnished rentals in the area is higher than or similar to that of unfurnished rentals.
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03 Differences in taxation
Simply put, furnished rentals are more advantageous in tax calculations than unfurnished rentals. For foreign investors (non-French tax residents), the basic tax rate is 20%.
04 The landlord's own logistical service capabilities
Based on the above three points, the rental method with furniture is more advantageous, but it takes a lot of effort to decorate and configure furniture.
When the landlord does not have the energy to decorate and configure the furniture, or the existing furniture in the house is not of high quality, it is recommended to rent vacantly.
Rental properties for sale by Red Line Real Estate (please click the link for details): Airbnb commercial investment property in the old financial district of Paris 9th district
Of course, theory is one aspect, and understanding and practical operation may still be difficult. You can also choose to use a professional leasing management company (Redline Real Estate also provides such services) to save you the troubles and troubles of managing the property. In the next issue, we will give you tips on how to avoid the Paris rent cap. Follow us and don't miss any information!
