Paris (PRWEB) February 5, 2008
Owning a pied-à-terre is a dream for thousands of visitors who return to Paris year after year, yet it's simply not the right move for many.
With Parisian real estate prices climbing rapidly over the last several years, on average 10% per annum since 2000, many potential buyers have been priced out of the market or found a purchase difficult to justify given only visiting the city a few weeks a year. And with the rise in the Euro, many would-be buyers are frustrated to discover that even a significant investment won't buy a good property in a desirable location.
"Many of my American clients with million dollar budgets were able to buy spacious two bedroom apartments a few years ago," says Melissa Schrock, a real estate agent for Paris Property Finders, "now they're only able to afford a small one bedroom in the areas where they want to be."
In response, a totally new concept, called fractional ownership, is being introduced into the Paris property market. Fractional ownership, already extremely popular in the United States, is a shared-ownership structure where a small group of investors pool resources to buy luxury assets. Many call fractional the best of both worlds, as it is a real equity interest in a property yet one only pays for proportionate usage. This model enables a buyer to purchase a property at only a fraction of the normal cost which in turn leaves cash free for other investments.
In most fractional properties, calendar management, maintenance and administrative details are handled by professional managers on behalf of the owners. Everything is managed behind the scenes leaving more time for shopping, dining with family and friends or otherwise having fun.
"Many of my clients are really interested in this new model since it allows them to have what they want with much less capital outlay. I've been advising that the investment value with fractional properties is a function of both the quality of the product, its furnishings, its amenities, as well as its continued management over the years. So it's really important to examine what is really on offer," continued Ms. Schrock.
Fractional Paris (http://www.fractionalparis.com) is one the few companies specializing in fractionalized property. Their newest offering is an 800 square foot, 2-bedroom apartment in the heart of the Marais. The apartment, 7 rue Malher, is located in the heart of the historic St. Paul district, and comes with a beautiful 100 square foot private terrace overlooking a secluded courtyard.
"The response to our offerings has been overwhelming," explains Miranda Bothe, Managing Director of Fractional Paris, who offers fractional properties in Paris' most sought after areas, Saint Germain des Près and the Marais. "We've found there are lots of people out there who've always wanted to own in Paris, but who couldn't justify it for one reason or another. Fractional properties open the door to so many people. Our last two projects sold out before construction was even completed."
A similarly appointed apartment with a terrace would cost today's buyer well over $1,500,000 plus the associated headache to purchase, renovate and furnish. Fractional Paris is offering a 1/12th share with the right to four weeks of use a year, in perpetuity, for $180,000 or €120,000. The price includes the all acquisition costs, renovation and furnishing, and legal and financing fees.
About Fractional Paris
Fractional Paris is a division of Paris Property Finders, the first licensed real estate buyer's agent in Paris and the market leader in France. With over 15 years of combined experience in real estate and construction, we've spent years assembling the best teams. Our highly competent design, construction and management teams ensure that everything is done right the first time.
For more information, please contact:
Paris Property Finders
France (+33) 06 78 91 84 53
USA (917) 779-9950