bonapartconsultingparis

Bonapart's sister site I V Y paris at the Louvre

Bonapart's sister site, I V Y paris has once again been invited to organise an expatriate art exhibition at the Louvre on Sunday October 14, 2007 - RSVP here. Our audience is 5000 people who are attending Expatica's conference on living in Paris, "I'm Not A Tourist".

I V Y Paris arts network links artists to help them meet, support and inspire each other. IVY paris enables you to easily find other Paris-based artists, writers, musicians, dancers and filmmakers helping both artists and patrons quickly discover and negotiate the Paris arts scene and participate in interesting under-the-radar events.

Happy Christmas?

No, Non, NON! If you were trying to sell your apartment for €1 078 000 would you really choose this as the principal photograph to represent it?
Picture - ALMA immobilier

It's nice to work with someone else who understands the business but can really appreciate that Paris is...well, different. Our client Carol Carnevale is a realtor from Palo Alto in California. Funnily enough, there are some similarities with our taglines, Bonapart is "the art of real estate" while her company is "Mastering the art of real estate"!

When I sent some apartment reports and visual samples through to her I giggled at her comments on the shocking state of the typical French realtor's apartment presentation. We call it French shui instead of Feng shui......

John Baxter's "We'll always have Paris"

I've just finished the great book by renowned film critic, biographer and Paris guide John Baxter "We'll always have Paris" (read review). I met John recently when he kindly recommended some friends who are looking to purchase looked us up at Bonapart and I snaffled a signed copy of the book on the way out of his apartment.

I simply loved the stories about the “naughty” side to Paris, especially about the brothels of yesteryear. You can read more and buy the book on our arts site I V Y paris.

I'm making a roster of approved guides for Bonapart clients visiting Paris and John will participate. I'll unveil the selection for your delectation soon. Buying a home here is so much more than just real estate (thank goodness or I’d get bored with my job). Paris refreshes a part a part other cities can’t reach (to paraphrase an old beer commercial) and most of my clients have been bitten by the same bug as me so working with them to help them find their place (apartment -wise as well as in-firring with their lifestyle) is both a privilege and a pleasure.

When is a realtor not a realtor?

............When he's in Paris.

With apologies to the 5% of the 3500 Paris agencies who do a good job and work hard to fill requests from those searching for property.

When people ask me if I work with Real Estate agents in Paris, I balk. How can you possibly associate me with these people (and plus, I work for the buyer, not the seller!)? We all love to hate Real estate agents everywhere but I have never experienced anything like the laziness, unprofessionalism and sheer downright inefficiency of the Parisian pack. I can't stand being classed in the same breath as them.

And they hate me. Even though I take absolutely no part of their commission and have serious buyers as clients which is why I am in their agency. I guess it's because as I accompany people I am also advising them of a fair price, negotiating for them and requesting paperwork to verify everything the Agent spouts. "Oh the building won't need cleaned for at least another ten years, Vous n’inquiétez pas Monsieur".

Here are some of the comments this week - and here I am just an ordinary client calling by telephone, they don't know I'm from Bonapart Consulting. Each question I pose is like drawing blood from a stone - why am I calling up and bothering them with my requests?

Me: "And the size?"
Agent: "80m²" - in an irritated and impatient manner
Me: "Which floor please?"
Agent: "3rd" - deep sigh
Me on telephone: "Do you mind telling me if that's the street to the left or right of the Square?"
Agent: "Why don't you get hold of a map and look it up for yourself."

Me: after visiting an apartment on sale for nearly 4 million euros (so expecting service to be a little more pointu):
Well thank you, this is a magnificent property and I'd like to get back to my client very quickly so they can arrange to come to France and view it. Can you send me the floor plan by email this afternoon please"
Agent: "That's out of the question, my Secretary leaves at 3pm on a Friday and I can't possibly go back to the office"

Me on telephone: "Hello, I'm ringing to remind you to send me the details on the property on rue Spontini, I'd like to see them and arrange a visit as soon as possible, it's just what I'm looking for. Your colleague seems to have forgotten to send me the details, I called yesterday".
Agent: "Well you'll have to wait. he's on the phone and he'll get back to you in his own time. We've got too many things to do and we don't have a scanner in this office".

I protested but the feeling I got was a familiar one, I know the woman just rolled up my details and fired them into the nearest wastepaper bin, nominally to "teach me a lesson".

Why are they so busy? They spend their time phoning up ownes who are selling their properties privately and pestering them to give their fantastically proactive agency the Mandat to sell it. When they get their property they just stick it on a website and wait for the people to call them.

Even when you do call up they'll be dismissive on the phone and very rarely call you back to follow your search (if you even suceed in getting them to register the details in the first place). You have to usually physically plant yourself in their office and threaten to squat there before you can get them to discuss that. Inevitably they apply the most repellent Parisian sarcasm when you give the budget, it is NEVER enough for what you want, (especially if you know very well the price per m² and are not prepared to pay over the odds). Sometimes they give a nasty little smirk and laugh at this point.

As for managing apartments for furnished rentals they are a joke. I've had owners with sumptuous apartments come to me in desperation asking why their palace with an 80m² roof terrace has been on two agencies books for 3 months (for a pififul rent) and won't shift. Perhaps because I found out it was impossible to even make a visit with them as they never returned calls, they never replied to email (usually it's a one email address with Wanadoo that serves for the entire agency and no one ever reads it let alone responds) and they couldn't be bothered to even make the visits. Finally when they relinquished the keys (after a fight) it was rented to a happy Bonapart relocation client within 2.5 days.

I shouldn't complain, this inefficiency gives my company it's competitive advantage but it's still shocking how things function here. What I keep asking myself is, how the hell do they make any money?

I guess I'll put this in the "Paris Curiosities" section.

Rat Shop

I heard one of my clients asking her husband if the area we were talking about exploring was near the "rat shop". I knew at once excactly where she meant - a conversation ensued about the shop which wins the award for "Most Grisly Window Display" hands down.

I'm most impressed by the rats which are displayed in the window, labelled with the date and place of capture, still caught in their traps. "Genuine rat from Les Halles market, captured 1962" etc.

rue des Halles, just before Place Saint Opportune.

The viager system

The viager system of French house purchase accounts for around 10 per cent of all private property sales in France. Under this system, you, the buyer, contract to purchase the property from the vendor in one of three ways, but do not usually take possession until the vendor's death.

It might seem astounding but the system helps elderly people, who may be living alone, to realise the value of their house while still alive, and yet remain in their property. It effectively acts as a pension top-up.

The advantage for the buyer is that it offers the chance to pick up a property very cheaply and often in a good area, and with reduced notaire's fees of only 3 per cent. However, the transaction is essentially a big gamble in that if the vendor lives for a long time, you may not be able to take possession of the property for many years.

The viager system is not a short-term proposition and is primarily suited to institutional investors, high-net-worth buyers looking for somewhere for their retirement, and foreign investors who want a holiday home in France in the medium to long term.

There are three ways of buying a viager property:
* The buyer pays the vendor a lump sum plus a monthly annuity.
* The buyer pays the vendor a lump sum, but no annuity.
* The buyer pays the vendor a monthly annuity only, but no lump sum.

The lump sum is known as a 'bouquet'.

About 95 per cent of viager properties have tenants – in other words, the vendor lives on the premises until he or she either dies or leaves (for instance to enter sheltered accommodation). About 30 per cent of such tenanted properties become vacant before the death of the vendor, which means the buyer can then live in the property or rent it out to create income.

About 5 per cent of such properties are vacant to start with, enabling the buyer to move in straight away, or rent out the property and use the rental income to fund the monthly payments to the vendor.

Rights and obligations
Buying via the viager system entails certain rights and obligations from both parties.

Effectively, the buyer becomes the new owner on the day the title deeds are exchanged. He then has to pay for any major works to be done to the property, along with the land tax. He can sell the property whenever he pleases, without requiring the approval of the vendor, and he can take out an insurance policy to cover him in case the vendor lives a longer life than expected.

In turn, the vendor is allowed to live in the property but not to rent it out. He has to pay for any service charges (such properties are often sought-after apartments in period blocks), local taxes and maintenance.

Calling it off
The contract is void if the vendor dies within 20 days after the exchange of contracts or it is found that the buyer knew that the vendor had an incurable disease when he bought the property! It is also void if the selling price is found to be too low – ie: the figures have been fiddled in some way to avoid inheritance tax.

A viager purchase normally takes about six months to complete.

The Paris underworld

It's essential to check out your cave (cellar) properly when you are buying an apartment. This is the area in the bowels of your building which can be used to stock your wines but also, bikes, old furniture and often nomadic friend's belongings as the pass in and out of Paris in my case - ("Hey, you have a cave, can I leave some stuff for a month or two?"). So, they're a nice little commodity and not to be sniffed at. Always ask if there is one when sussing out a property to buy. It can also add value, even if you don't need it for storage yourself, it could be rented to a neighbour short of space.

Last week, on investigating a cave for a potential purchaser I was stopped in my tracks when I saw this notice posted to the door. Due to thefts, a number of caves had been protected by their owners with traps! I've braved some difficult situations for my clients, normally more likely to be negotiations with tetchy Real Estate agents, but this is ridiculous. Suffice to say I came out unscathed.

If you are considering storing good wine in your new cave it really is important to be sure that it is neither too dry or too humid or you will not do those fine wines any good.

Always check it out first, Caveat Emptor is a very important maxim here in Paris (as it is anywhere but you have been warned!).