PL20b – 25th February 2003.

Posted by admin in Property Letters | February 25th 2003

Dear All,

We have worked hard and seen a lot of apartments, and out of them all these four attached stand out.

Frere Pradignac I put into Property Letter 20, so you have seen it already.
Plage du Midi I also mentioned and there are a couple still available.
The Loft in the Old Town, and Rue d’Antibes are new.

All of them are wonderful – but they vary in price. All are subject to offers below the asking price which we normally try to achieve anyway. The cost and income estimates are very conservative and are a guideline only, on the principle that if they work at these figures, then reality has a good chance of surpassing budget.

Vicky and I would buy any one of these if we could, but which would we choose if we could only buy one? I don’t know.

Plage du Midi – the only one on the beach – fantastic position.
Loft – the nicest by far because it’s finished so stylishly – also great position.
Freres Pradignac – great character and potential – numbers really work – great position.
Rue d’Antibes – the address says it all – supreme rentability – amazing position.

This is a small file this time because Lao is here and has shown me how to do it properly. I am sorry the last one was so big – my ignorance is to blame.

Our best regards,

Guy & Vicky.

PROPERTY ANALYSIS Pierre

1 Property Name: Rue d’Antibes
Location: Cannes centre
Type: studio
Floor level 2
Sq m 30
Occupation Date immed

2 Purchase cost of property 129320.00
Garage
Parking
Cave/cellar
Total property cost 129320.00
Tsf duties 7% 129320 9052.40 9052.40
Tsf duties 3% 0.00 0.00

Total cost per sq m 4310.67

3 Mortage % 50.00 64660.00
Deposit % 50.00 64660.00

Rate of Interest 4.10
Monthly repayments 481.52

4 Estimated rental income Rate per week
2 weeks @ film festival 2 1143.00 2286.00
7 weeks @ peak 7 700.00 4900.00
5 weeks @ shoulder 5 600.00 3000.00
8 weeks @ medium 8 525.00 4200.00
6 weeks @ out of season 6 400.00 2400.00
Total Income 28 16786.00

5 Income/cost of property 12.98 %

6 Estimated costs Rate per month
Advertising 70.00 840.00
Tax fonciere 50.00 600.00
Tax habitation 50.00 600.00
Insurance 50.00 600.00
Levy – property 30.00 360.00
Water 14.00 168.00
Electricity 50.00 600.00
R & M 50.00 600.00
Management 209.83 2517.90
Services 28 weeks @ 50 euros per week 1400.00
Total annual expenses 8285.90
Mortgage repayment 481.52 5778.28
Total with mortgage repayment 14064.18

7 Investment
Deposit 64660.00
Tsf duties 9052.40
Finders fee 3233.00
kitchen 0.00
furniture 3500.00
redecoration 20000.00
Other 0.00
Total invested 100445.40

8 Net Profit – Return on Investment – 1st yr
Annual gross rents 16786.00
Annual expenses 8285.90
Gross annual operating profit 8500.10
Debts service 5778.28
Net overall operating profit 2721.82
Net Profit R.O.I. % 2.71 %

9 Capital Appreciation – R.O.I – 1st yr
Original purchase price 129320.00
Cost of improvements Kitchen & redecoration 23500.00
Total 152820.00
Forced appreciation Adding value – better use
Natural appreciation 12.00 18338.40
Revised Value of Property 171158.40
18338.40
Appreciation R.O.I. % 0.18 18.26 %

10 Equity Buildup – R.I.O. – 1st yr
Initial Loan Amount 64660.00
Amount applied to principal 3089.02
New Principal Balance 61570.98
Equity Buildup Initial loan amt – new principal bal 3089.02
Equity Buildup R.O.I. % 3.08 %

11 Tax Shelter R.O.I. – 1st yr
Expenses will offset most or all
income for tax purposes – depending
on individuals tax circumstances 10.00 10.00 %

12 Return on Cash invested % 2.71 %
Appreciation % 18.26 %
Equity Buildup % 3.08 %
Tax Shelter % 10.00 %
Total R.O.I. % 34.04 %

This studio apartment with a large feel is in an amazing position. It is on Rue d’Antibes
directly across the square from the Palais des Festival which is where the film festival and
conferences are held.
Rue D’Antibes is one of the better known addresses in France being the trendiest street
in Cannes. The apartment is on the second floor of an old building and overlooks the
street through double glazed windows. It really is in the heart of the conference centre
marinas, classy restaurants and nightclubs, and 100m from the little cobblestone streets
which rise into the old city.
Life in this part of Cannes is lived largely on the street and even this vibrant end is made
up of pedestrian traffic.
The apartment needs renovating with a new kitchen, an upgraded bathroom, and painting
throughout.

PROPERTY ANALYSIS

1 Property Name: No 16 Rue Freres Pradignac
Location: Cannes centre
Type: studio
Floor level 1st floor
Sq m 32.37
Occupation Date immed

2 Purchase cost of property 110000.00
Garage
Parking
Cave/cellar
Total property cost 110000.00
Tsf duties 7% 110000 7700.00 7700.00
Tsf duties 3% 0.00 0.00

Total cost per sq m 3398.21

3 Mortage % 50.00 55000.00
Deposit % 50.00 55000.00

Rate of Interest 4.10
Monthly repayments 409.59

4 Estimated rental income Rate per week
2 weeks @ film festival 2 1143.00 2286.00
7 weeks @ peak 7 700.00 4900.00
5 weeks @ shoulder to peak 5 600.00 3000.00
8 weeks @ medium 8 450.00 3600.00
8 weeks @ out of season 6 400.00 2400.00
Total Income 28 16186.00

5 Income/cost of property 14.71 %

6 Estimated costs Rate per month
Advertising 70.00 840.00
Tax fonciere 50.00 600.00
Tax habitation 50.00 600.00
Insurance 30.00 360.00
Levy – property 45.00 540.00
Water 14.00 168.00
Electricity 50.00 600.00
R & M 60.00 720.00
Management 202.33 2427.90
Services 28 cleaning weeks @ 50 euros ea 1400.00
Total annual expenses 8255.90
Mortgage repayment 409.59 4915.02
Total with mortgage repayment 13170.92

7 Investment
Deposit 55000.00
Tsf duties 7700.00
Other 0.00
Finders fee 2750.00
kitchen 1000.00
furniture 2500.00
redecoration 2000.00
Other 0.00
Total invested 70950.00

8 Net Profit – Return on Investment – 1st yr
Annual gross rents 16186.00
Annual expenses 8255.90
Gross annual operating profit 7930.10
Debts service 4915.02
Net overall operating profit 3015.08
Net Profit R.O.I. % 4.25 %

9 Capital Appreciation – R.O.I – 1st yr
Original purchase price 110000.00
Cost of improvements Kitchen & redecoration 5500.00
Total 115500.00
Forced appreciation Adding value – better use
Natural appreciation 12.00 13860.00
Revised Value of Property 129360.00
13860.00
Appreciation R.O.I. % 0.20 19.53 %

10 Equity Buildup – R.I.O. – 1st yr
Initial Loan Amount 55000.00
Amount applied to principal 2627.53
New Principal Balance 52372.47
Equity Buildup Initial loan amt – new principal bal 2627.53
Equity Buildup R.O.I. % 3.70 %

11 Tax Shelter R.O.I. – 1st yr
Expenses will offset most or all
income for tax purposes – depending
on individuals tax circumstances 10.00 10.00 %

12 Return on Cash invested % 4.25 %
Appreciation % 19.53 %
Equity Buildup % 3.70 %
Tax Shelter % 10.00 %
Total R.O.I. % 37.49 %

This studio flat has character. Set one block from the Croisette between the Carlton and Grand
Hotels and in the heart of the shopping, conference and restaurant district of central Cannes.
It is on the first floor of an old building without a lift. But the staircase is light and easy.
This is a corner apartment, with tall wooden windows and shutters double glazed against sound from
the street which is narrow and bustling and largely pedestrian.
As you enter the flat, there is a small bathroom, with separate loo. Hall leads through to the studio with
two columns and arches and an open plan kitchen.
It comes fully furnished, but would need some improvements, although it is rentable immediately.
It has a double bed, and a pull-out sofa bed.
We would recommend a new bed, and it would benefit from fresh paint, and some enhancing furnishing.
This apartment has a nice slightly bohemian feel.

p.s. On reflection if 5000 euros was spent on the kitchen and a little more giving the entire flat a quality finish
we feel it would be money very well invested. Whereas we have suggested above, an investment in kitchen
redecoration and refurnishing of 5500 euros which would make it rentable, 15 000 euros spent on it
would make it super.

PROPERTY ANALYSIS Brigette

1 Property Name: Loft one bedroom
Location: Le Suquet
Type: one bedroom open to below
Floor level 4th
Sq m 35
Occupation Date immed

2 Purchase cost of property 164000.00
Garage no
Parking no
Cave/cellar
Total property cost 164000.00
Tsf duties 7% 164000 11480.00 11480.00
Tsf duties 3% 0.00 0.00

Total cost per sq m 4685.71

3 Mortage % 50.00 82000.00
Deposit % 50.00 82000.00

Rate of Interest 4.10
Monthly repayments 610.65

4 Estimated rental income Rate per week
2 weeks @ film festival 2 1143.00 2286.00
7 weeks @ peak 7 850.00 5950.00
5 weeks @ shoulder 5 600.00 3000.00
8 weeks @ medium 8 450.00 3600.00
6 weeks @ out of season 6 400.00 2400.00
Total Income 28 17236.00

5 Income/cost of property 10.51 %

6 Estimated costs Rate per month
Advertising 70.00 840.00
Tax fonciere 50.00 600.00
Tax habitation 50.00 600.00
Insurance 50.00 600.00
Levy – property 48.63 583.56
Water 14.00 168.00
Electricity 50.00 600.00
R & M 50.00 600.00
Management 215.45 2585.40
Services 28 weeks @ 50 euros per week 1400.00
Total annual expenses 8576.96
Mortgage repayment 610.65 7327.85
Total with mortgage repayment 15904.81

7 Investment
Deposit 82000.00
Tsf duties 11480.00
Finders fee 4100.00
kitchen fully equiped 0.00
furniture fully furnished 0.00
redecoration none required 0.00
Other 0.00
Total invested 97580.00

8 Net Profit – Return on Investment – 1st yr
Annual gross rents 17236.00
Annual expenses 8576.96
Gross annual operating profit 8659.04
Debts service 7327.85
Net overall operating profit 1331.19
Net Profit R.O.I. % 1.36 %

9 Capital Appreciation – R.O.I – 1st yr
Original purchase price 164000.00
Cost of improvements Kitchen & redecoration 0.00
Total 164000.00
Forced appreciation Adding value – better use
Natural appreciation 12.00 19680.00
Revised Value of Property 183680.00
19680.00
Appreciation R.O.I. % 0.20 20.17 %

10 Equity Buildup – R.I.O. – 1st yr
Initial Loan Amount 82000.00
Amount applied to principal 3917.41
New Principal Balance 78082.59
Equity Buildup Initial loan amt – new principal bal 3917.41
Equity Buildup R.O.I. % 4.01 %

11 Tax Shelter R.O.I. – 1st yr
Expenses will offset most or all
income for tax purposes – depending
on individuals tax circumstances 10.00 10.00 %

12 Return on Cash invested % 1.36 %
Appreciation % 20.17 %
Equity Buildup % 4.01 %
Tax Shelter % 10.00 %
Total R.O.I. % 35.55 %

This apartment comes fully furnished and has a true french feel, set on the fourth floor under the roof,
with large window and balconette looking out across the rooftops of the Old City.
It has been recently renovated with a modern feel yet it keeps the character of the building with sloping
ceilings, old wooden beams, and a staircase which leads up to an open mezzanine floor which is the
bedroom.
Windows in the roof can be opened and look out across the harbour of Cannes.
Bathroom en suite is modern with again a roof window with views across the sea if you stand on tip toe.
There is a second loo downstairs off the living room (the first time we have seen this!)
Kitchen has been beautifully redone, in a chrome modern finish, and is totally equiped with stove,
dishwasher washing machine, fridge and microwave. There is a small table and with four chairs set in the
middle, and a large sofa bed with coffee table in front of the window.
It’s position is one block up into Le Suquet, and it overlooks the Marina and the Palais des Festivals and the
buzzing heart of Cannes.
It hasn’t yet got a lift, but we are informed that the Syndicate running the building have already budgeted for
and voted that a lift be installed. Before making an offer we would check this.

1 Property Name: Plage du Midi medium appartment
Location: Cannes Plage
Type: studio/1bedroom
Floor level 1st
Sq m 36
Occupation Date immed

2 Purchase cost of property 210940.00
Garage no
Parking on street or 30000 euros
Cave/cellar yes
Total property cost 210940.00
Tsf duties 7% 210940 14765.80 14765.80
Tsf duties 3% 0.00 0.00

Total cost per sq m 5859.44

3 Mortage % 50.00 105470.00
Deposit % 50.00 105470.00

Rate of Interest 4.10
Monthly repayments 785.44

4 Estimated rental income Rate per week
2 weeks @ film festival 2 1143.00 2286.00
7 weeks @ peak season 7 925.00 6475.00
5 weeks @ shoulder 5 600.00 3000.00
8 weeks @ medium 8 450.00 3600.00
6 weeks @ out of season 6 400.00 2400.00
Total Income 28 17761.00

5 Income/cost of property 8.42 %

6 Estimated costs Rate per month
Advertising 70.00 840.00
Tax fonciere 50.00 600.00
Tax habitation 50.00 600.00
Insurance 30.00 360.00
Levy – property 50.00 600.00
Water 14.00 168.00
Electricity 50.00 600.00
R & M 50.00 600.00
Management 222.01 2664.15
Services 28 weeks cleaning at 50 euros 1400.00
Total annual expenses 8432.15
Mortgage repayment 785.44 9425.22
Total with mortgage repayment 17857.37

7 Investment
Deposit 105470.00
Tsf duties 14765.80
Finders fee 5273.50
kitchen 0.00
furniture 2000.00
redecoration 2000.00
Other 0.00
Total invested 129509.30

8 Net Profit – Return on Investment – 1st yr
Annual gross rents 17761.00
Annual expenses 8432.15
Gross annual operating profit 9328.85
Debts service 9425.22
Net overall operating profit -96.37
Net Profit R.O.I. % -0.07 %

9 Capital Appreciation – R.O.I – 1st yr
Original purchase price 210940.00
Cost of improvements Kitchen & redecoration 4000.00
Total 214940.00
Forced appreciation Adding value – better use
Natural appreciation 12.00 25792.80
Revised Value of Property 240732.80
25792.80
Appreciation R.O.I. % 0.20 19.92 %

10 Equity Buildup – R.I.O. – 1st yr
Initial Loan Amount 105470.00
Amount applied to principal 5038.65
New Principal Balance 100431.35
Equity Buildup Initial loan amt – new principal bal 5038.65
Equity Buildup R.O.I. % 3.89 %

11 Tax Shelter R.O.I. – 1st yr
Expenses will offset most or all
income for tax purposes – depending
on individuals tax circumstances 10.00 10.00 %

12 Return on Cash invested % -0.07 %
Appreciation % 19.92 %
Equity Buildup % 3.89 %
Tax Shelter % 10.00 %
Total R.O.I. % 33.73 %

This apartment is in an amazing position, set right on the beach front overlooking the sea.
We recommend an offer somewhere about 10% below the asking price above in which case
should it be accepted, this would be one of the most rentable apartments. It has the
advantages of directly overlooking beautiful beaches, being 100m from the Old Marina,
sitting at the base of the picturesque and historic old town of Cannes (Le Suquet) and
it is a three minute walk to the main conference centre, the Palais des Festival.
This is a fully but basically furnished apartment with small bedroom/alcove as you walk
in the door. There is a bathroom (immaculate) and separate loo. As you walk down
the passage to the living room with open plan kitchentte, all you see through the
glass doors at the front is the sea, with it’s beaches, and palm trees.
Kitchenette is equiped with a small stove, oven, fridge and dish washer. The living room
has a bamboo/glass round table and four matching chairs, with a sofa bed, TV, lamp and
small side table.
From the spacious balcony with it’s white table and chairs, there is a wonderful view
stretching from the Island of St Honorat to the East across to the hills trailing off to St
Tropez in the West.
The apartment is on the first floor, above a row of classy restuarants.

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