PL41 – 25th May 2004.

Posted by admin in Property Letters | May 25th 2004

Dear All,

We keep on shaking the tree every day, and occasionally something falls from it which is of exceptional value. I can’t predict when or if it will happen, and I regret that Vicky and I are not in a position to go for this one for ourselves, or we would.

Le Piree.

This building is a quality residence on the corner of Rue Jean Cresp and Ave Reine Astrid. It is well maintained with a gardienne (concierge), and lovely little lawned and gardened communal area with a fountain and water feature at the entrance.
Each floor except the ground floor has sea views over Bijou Plage (our favourite beach) which is literally a few yards down Ave Reine Astrid and across the Croisette. Two minutes away.
Palm Beach remains a great area for investment, and is on the Croisette, accessible to the conference venues and the centre of Cannes as well as the quieter beaches. We have many apartments in the area already.
The apartment is interesting for a variety of reasons:

Firstly price.
Price – 200 000€
Living space – 63.37 sq.m.
Price per sq.m. – 3 156€

Secondly, it lends itself perfectly and easily to dividing into two apartments – two rental units. One would be a spacious studio apartment and the other an equally comfortable one bedroom apartment. Therefore it also lends itself to one investor, or if the total price is too high for you, to two who may wish to go in together on a 120 : 80 basis for example. (There would not be separate title initially, but division is permissible. Application can then be made at the AGM of the co propriety to separate the property into two titles if the owners wished. Your notary handles this, and if it fails to pass on the first attempt, one can try again. The information that I have is that it should be successful, but not necessarily.)

The apartment is on the ground floor (no sea view!) and one enters a small hall through a main door from the lobby. In front of you is another door, and on the left another.

Go straight ahead, and you enter a short passage with a bedroom on your right overlooking a courtyard, a hedge and beyond it Rue Jean Cresp. On your left is the bathroom. At the end of the passage is the living room, light and bright, with sliding doors onto a terrace, and a kitchen at far left.

Go through the door on the left after entering the small hall and one enters another small passage with a bathroom immediately on the right and a living/sleeping room ahead. Into this would be built another kitchen. It opens through sliding glass doors onto a cobbled area and the driveway leading to the parking area attached to the apartment building. (About 16 parking spaces in all and no.7 is allocated to this apartment.)

If the two doors leading off the small hallway by the front door are left open, the two apartments become one big apartment with two bedrooms. In this way it would be perfect for families, or groups of delegates, so it is very versatile from the rental point of view. Multi – functional.

Works. To make a good job of the sub-division, one bathroom needs refurbishing, while the other is fine. The kitchen needs demolishing, and two need to be built. The whole place needs repainting and some interior walls need to be shifted, to enlarge the smaller apartment with no detriment to the larger.
I can quickly get a professional estimate but my educated guess is –
Demolition 1 500
Two kitchens 11 000
Bathroom renovation 3 000
Restructuring walls 2 000
Electricity and lighting 5 000
Extra plumbing 1 500
Painting 8 000
Carpentry (cupboards) 3 000
Total 35 000

Furnishing. It will cost 6 000 to furnish the studio nicely, and 8 000 to do the one bedroom apartment. That is generous.

Transfer fees and notary’s charges at about 7% are another 14 000, and that is IT.

Total investment – 263 000€

The cost of renovations can be applied for as part of a loan, and the interest rates now are 3.25% p.a.

There is a hitch. The apartment was ‘sold’ and the prospective buyer has been unable to raise finance. We have his sale agreement (compromis de vente) which allows him the right of substitution, but we can not hang onto it beyond this weekend. What this means is if we don’t substitute a name for his this week, next week the apartment will be a different price.

If you had any intention of investing here, and if you are in a position to move fast, I recommend you get straight back to me. I have not seen a better investment than this for a long time.

Kindest regards,

Guy.

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