BUY IN PARIS

 

 

 

 

 

 

 

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Paris property market in 2017

Despite prices displayed often unchanged, we actually see a fairly significant drop in prices for the past two years. The market has become much more selective for these two years, apartments with defects are not selling, especially not to a foreign clientele. Negotiation is therefore clearly rebalanced in favor of buyers who start return to the market to seize good investment opportunities.

 

Foreign buyers are returning to the Paris property market

The proportion of foreign buyers in the housing top Parisian locations is still very important in neighborhoods like the 16th North, Parc Monceau, Saint-Germain des Prés, Invalides, …

In 2014, we witnessed a return of foreign buyers in the Paris market : international buyers who want to invest their funds in US dollars or Swiss francs in the French stone. For them the resurgence of the US dollar and the Swiss franc represent an additional decrease of approximately 15% compared to previous years. Combined with falling prices for them so this is the perfect time to invest.

What are our foreign customers looking for ?

Today we see two quite distinct types of buyers: on one side, we see French investors returning to the market, attracted by the wide range of goods and lower prices. These opportunistic buyers are most active in western Paris and hope to buy goods that were previously out of their reach.

Our foreign customers are looking for great opportunities of investments at attractive prices, but above all in perfect condition and, therefore, in a range of higher prices. These customers are concentrated in the North of the 16th district, the golden triangle (8th district) and the 6th and 7th districts. A prestigious address recognizable remains a guarantee of security and a fundamental condition of sale. These customers are looking into specific lists of streets (2 or 3 maximum), the best avenues, rather than a whole district, with views and in perfect conditions (work dating less than one year

Paris and other international cities

The owners are more than ever aware of the lack of market liquidity , and thus the price adjustment will continue. Therefore, Paris is again more competitive vis-à- vis other international cities such as London , New York or Hong Kong, offering interesting investment opportunities for its diversity and the quality of many products offered

 

Milestones Acquisitions in France

1 - Agree on the price

A potential buyer of a prestigious property may wish to negotiate the sale price of the property if the original set price by the owner does not suit him. A promise to purchase is then given by the buyer. This offer once validated by the owner leads to the next step, the sales agreement. Would the  seller refuse the offer a counter proposal would be given; negotiation will end when both parties reach an agreement.

2 - The sales agreement

A sales agreement is drawn up committing the seller and conversely the buyer to acquire in certain conditions. This contract dated and signed by both parties mentions the payment terms , any suspensive conditions of the purchaser – for example, a home loan or refusal of building permits canceling the validity of the contract – the date of deposit the notary of about 5 to 10% of the selling price , the date of validity of the offer, and the date of signing the deed of sale.
The buyer may withdraw during the eight days of signing the agreement,  beyond this period alone the non-occurrence of one or more suspensive clauses allow the buyer to terminate the contract without losing his deposit. The seller, once the agreement is signed , cannot withdraw without being subject to a penalty.

3 - The final deed of sale

The signing of the deed of sale completes the sale of the property. Before that date and after signing the sales agreement , the notary will take care of verifying the authenticity of documents necessary for the sale of real estate.

4 - Taxes and Fees

The selling real estate agent fees are calculated around 4% of the price of the property, excluding VAT, and are paid by the seller. The buyer is to pay the notary fees and land registration.

Property taxes, housing taxes must also be taken into account by the new owner at the time of the acquisition of the property. We are at your disposal to help you with the legal obligations related to buying a property in France.



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