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 review my lawyer in France ?
- 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 (vice caché)
- Can I terminate the lease ?
LEASE BACK INVESTMENTS in FRANCE
Many issues arise when you purchase a lease back investment in France :
- 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 company managing and 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 in a student residence
- Pitfall: service residence rents which are too high
- Service premises in a co-ownership
PITFALLS TO AVOID IN TAX-EXEMPT REAL ESTATE 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 go over the commercial lease
Understand the contracts you sign. Few hundreds of euros are better than several thousands (or ten thousands) of loss.
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 purchase (e.g. main residence).
Tip 5: Never forget the golden rule regarding PROPERTY LOCATION (IN FRANCE)
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! Have an exit strategy already in place from the moment you invest: Try to think ahead to the resale of the property in France.
Tip 6: When to sale ? Before any major repairs are required, for example (9 to 10 years maximum, for example).
Tip 7: Inquire about the resale market for this type of property, even if it is difficult to find this information.