Definition of the investment project

Before buying a property in Paris, it is key to clearly define the investment objective, as this guides all decisions. The main points to consider include: Investment objective: It can be for personal use, in which case location and comfort are prioritized, or for long-term investment, focusing on the appreciation of the property. If seeking to generate rental income, it is important to evaluate the type of rental (long-term, furnished or vacation) and the demand in the area. Capital and financing: Determine how much capital can be provided and assess the borrowing capacity. French banks usually finance up to 80% of the value of the property, although conditions may vary according to the buyer’s profile. Structure of the purchase: It is necessary to decide whether to acquire the property in a personal capacity or through a Real Estate Civil Company (SCI). In a personal capacity is simpler, but the SCI offers tax advantages and limits liability. Rental profitability: If the property will be rented, it is important to choose between an unfurnished rental (greater stability but less flexibility), furnished (higher turnover but more flexible), or vacation, which can be more profitable, but is highly regulated. Professional advice: Having real estate experts is essential to define the project, evaluate risks, select the type of purchase and maximize profitability, minimizing errors in the process. Defining these elements is crucial to ensure that the investment in Paris aligns with the buyer’s personal and financial objectives. Download our “Paris Home Buying Guide” and discover everything you need to know to successfully invest in the French capital.