Property investment à la carte
31st May 2024
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A short review on different approaches to property investment in the French Riviera to see which can best meet your objectives.
Classic property buy to let investments aiming for the best possible return on the capital invested.
The idea is to target the property segment most in demand, and these are typically small or mid-sized apartments in dynamic cities, preferably in the better areas to ensure hassle free rentals. Nice and Aix-en-provence are the top 2 cities in the South of France that are economically prosperous, with an international appeal and also large student populations.
But if you are open to seasonal rentals, Cannes with its dynamic convention centre and attractive beach and seafront “La Croisette” provides probably the best returns.
Smartfinder Home has assisted several international investors buy flats in Cannes, with one investor regularly earning 8% gross or 5% after property tax and expenses.
Pleasure property investments covers second homes that in addition to earning rental income, also benefit the owner, enabling him/her to occasionally occupy the property they buy. This is a balanced use of a second home, and that at least serves both the region and the planet, by optimizing usage of an important asset ! This is aligned with the “uber” trend like car sharing or boat sharing, that internet platforms facilitate so well.
This way, you have the freedom to decide the balance between the amount of rental income you want Vs. personal use in the high season. Using the property off-season, or doing home exchanges is the “extra fun” bonus you derive from these investments.
Such an investment will hold its value better than boats or modern cars, and provide a better safety net than volatile markets. The French Riviera is still the top spot on the Mediterranean and guarantees a flow of well off buyers that maintains demand and prices.
So unlike Paris, where prices have dropped 20% over the last 2 years, prices in Cannes or Nice have continued to rise slightly.
Alternative property investments that have advantages over SCPI investment vehicles or the constraints of using PINEL for tax breaks:
- Monetevia - a new and balanced way for tax efficient long term property investment, enabling you to get at a considerable discount, the base ownership of a property.
- Prello - to leverage your investment by buying only the share you want of a luxury property. This is managed co-ownership, not timesharing, part of the uber trend.
- Peer to peer property loan - you can use platforms to do this, but you can reduce intermediary fees almost completely using instead Smartfinder Home introductions and that are guaranteed just like bank loans with a fixed 3% to 4,5% return.
For any of these property investments, please contact Smartfinder Home - we will be delighted to share the pros and cons and guide you through the process.