BUYING / SELLING or RENTING a real estate in France can be tricky
Many issues arise when you buy and sell or rent real estate in France :
- Breakdown of appliances before settlement
- Rent review in France
- Buying real estate in France: Preliminary agreements
- Deposit after signing a preliminary agreement ?
- What contract should my French lawyer review ?
- Selling Real Estate in France
- Choosing a Real Estate Agent in France
- What kind of contract should I sign with the real estate agent in France ?
- Eviction of a Tenant in France (unpaid rent)
- Buying property in France that needs refurbishing
- Real estate Latent Defects (hidden defects)
- Can I terminate the lease ?
LEASE BACK INVESTMENTS IN FRANCE ARE COMPLICATED
There are specific considerations for French lease back investments :
- Termination of a Commercial Lease due to unpaid rents
- Termination of a Commercial Lease in France
- Charges and Commercial Lease in France
- Obligations of the managing/operating company
- Responsibilities for lease hold repairs.
- Selling a Commercial Lease in France
- Legal solutions and Litigation in France
- The notice period under the French Law
- What should I do if my tenant in France is not paying rent ?
- 4 pitfalls to avoid when investing in a student residence
- Trap: serviced residence rents which are too high
- Service premises in a co-ownership
PITFALLS TO AVOID IN TAX-EXEMPT REAL ESTATE IN FRANCE
Annual yield and total rent for the final client (client of the operating company)
Tip 1: Be wary of promised rates of return
Be wary of promised rates of return that exceed the average yield (3.5 % and 4.5 % depending on the city) of real estate properties in France.
Tip 2: Check that the rents established by the operator match the prices of the local rental market
Tip 3: Have a lawyer review the commercial lease
Understand the contracts you sign. A few hundred euros for legal advice can prevent thousands of euros of potential losses in the future. (please see our clients’ review)
Tip 4: Never buy real estate sight unseen! Whether it is tax-exempt or not!
This is neither a financial transaction nor a ” guaranteed tax avoidance plan “, but a PROPERTY PURCHASE, which is subject to the same rules as any other real estate purchases (e.g. main residence, which you would never buy sight unseen).
Tip 5: Never forget the real estate golden rule: Location. Location. Location.
No, the operator who “guarantees” an annual rental rate does not assume all the risks. If his returns are unsatisfactory, he will not hesitate to stop paying the rent to negotiate a reduction!
Tip 6: When to sell ? Before any major repairs are required, for example 9 to 10 years maximum.
Tip 7: Have an exit strategy: Inquire about the resale market for this type of property, even if it is difficult to find this information.
Have an exit strategy already in place from the moment you invest: Try to think ahead to the resale of the property in France.
The sale of leasebacks is very difficult and time-consuming and we can advice you on specialists in this area.