LuckyFrame
Property investor
I’m assessing a 2-bed serviced apartment in Paris at €561,200, with expected rent of €3,275 per month. That produces a headline gross yield of roughly 7.0%, and the building appears sound, but I’m concerned the lease length and tenant turnover could materially change the result.
My conservative model already allows for vacancy, management, routine maintenance, insurance and a reserve for one larger repair. I still need to stress-test property tax and financing costs.
For anyone familiar with Paris rentals, which local recurring cost or lease-related risk am I most likely underestimating? Also, after realistic expenses and vacancy, what net yield would you require for this deal to justify the risk?
My conservative model already allows for vacancy, management, routine maintenance, insurance and a reserve for one larger repair. I still need to stress-test property tax and financing costs.
For anyone familiar with Paris rentals, which local recurring cost or lease-related risk am I most likely underestimating? Also, after realistic expenses and vacancy, what net yield would you require for this deal to justify the risk?