PL6 – Property Letter 6 – 3rd June 2002.

Posted by admin in Property Letters | June 3rd 2002

We hope you don’t mind receiving these letters addressed to you as a group. We are so pushed for time, and as things are now, Vicky is typing this on her lap while Guy drives along the motorway! We have just seen properties today, numerous, mostly a waste of time; but two of them have been very interesting and we have put them on the spreadsheet whilst driving.

Firstly R & P, we looked at Riveria Palm Beach again this afternoon. It is absolutely lovely, beautifully furnished and finished, with a very pleasant garden which leads straight onto a quiet road across which is the beach. To your left your view is of Cap d’Antibes, to your right Isle Lerins with a centuries old monastry facing you. A couple of hundred metres down the beach is a yacht basin….. but we honestly believe the appartment is over priced. It is only a single bedroom – certainly with room to accommodate another two on a pull out bed in the sitting room. But even our Agents believe that the price is far too high. The trouble is that in Cannes overlooking the sea, they may get that price. We can put in an offer significantly below their asking price to test their resolve if you would like us to, but we recommend that we just keep on looking. The right one will come along.

Vieux Nice, we have spoken to Barbara an American married to a Frenchman, whom we told you about, and they live in Vieux Nice. They are very happy living here, and have done so for four years, but her concern was a) if someone realizes the apartment is empty sometimes, (i.e. not let for residential purposes) then you can have problems with people trying to move in. She also recommended that we check it out at night, because although no evidence during the day of discos, or pubs, because it is quiet, sometimes they open up “miraculously” at night when you didn’t even know they existed! If we were really serious about this one we would have to investigate further. She feels the area is coming up, and certainly has character and appeal, being in the heart of all the little shops, galleries and restauarants. It has a great buz, the bottom line is, is it a good investment. If you would like us to investigate further, we will.

We saw five other properties today, three were non-starters for various reasons but two were interesting. Both are bigger than we have been looking at and one at Palais Alexandra III, we may well take for ourselves. Below are their details:

Palais Alexandra III in Basse Californie in Cannes central, 100m from the beach, 73 sq m, 2nd floor 1 bedroom 184 463 Euros
Cost per sq m 2 526, with a monthly mortgage of 1 030 Euros. Upfront investment 66 715 (includes furniture but kitchen not required).
Rentability 14.37%, net profit ROI 5.92, Capital appreciation ROI 33.18%, Equity buildup ROI 9.91%, tax shelter ROI 10%, Total ROI 59.01%.
This is a truly spacious apartment with great proportions, set in a 1920’s building only 100m from the beach. It retains the original Art Deco style throughout, with spacious hall, original concertina lifts etc. It has double entrance doors leading to a large hall, off which is lounge with doors onto tiny balcony. View out to small gardens below, but quiet and peaceful. Large double bedroom, large kitchen fully equipped with fridge, oven, 4 plate stove, dish washer and washing machine. Small table to eat at as well. Modern bathroom, however shower only. No garage.

Rue Lacour, double story two bedroomed flat, in Cannes central, 600m from the beach, 100m from Rue d’Antibes (the main shopping street of Cannes), 3rd and 4th
Floors, 60 sq m, 183 000 Euros.
Cost per sq m 3050, with a monthly mortgage of 1022 Euros. Upfront investment 70 560 (includes all furniture and new kitchen). Rentability 13.93%, net profit ROI
3.47%, capital appreciation ROI 31.80%, Equity buildup ROI 9.29%, tax shelter ROI 10%, Total ROI 54.57%.
This is one of the few real two bedroom apartments that we have considered. It is a very good flat attractively refurbished with modern fittings. It is central in Cannes, and may well achieve a better rentability than we have allocated to it. Faces west with a view over quiet street and small school. It is on two levels, with staircase leading up from spacious lounge to two bedrooms and a bathroom with bath/shower. It has a separate 2nd downstairs loo. Good balcony off the lounge. There is already an offer in on this one, and we will only know tomorrow if we can buy it. Does it interest anyone?

We only saw one studio today in the price range of 120 000 Euros. But we are hoping to see another one tomorrow. We seem to have dented the market for this type but we must just be patient.

We had a very good meeting with an Accountant this morning, who I believe will look after our interests. He speaks good English, his name is Pierre Beyrand, and he fully understands what we are busy doing here.

Finally, we have Steve and Averil Pratt from Marondera, joining us in Cannes/Nice to look after our properties for us. They should be able to arrive sometime in September, and we will come over to help them get settled in. We know they will get a lot of support here, and their French lessons are well underway!

That’s all for tonight.

With love,
Guy and Vicky.

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