Laurent's rental investment from Thailand

4-Bed | Return | Bordeaux, South-West Of France

The first time we had Laurent on the phone, we thought the crackling was coming from a network problem. Except that Laurent lives and works in Thailand, and the crackles came from the wind blowing on the beach where he spends part of his time kitesurfing. As we sometimes say, brick and mortar is the best way to keep a concrete and tangible link with France as an expatriate. Advice that Laurent chose to apply to the letter since he asked us to find him two properties at once, in Lille and Bordeaux.

275K€ |
Selling price

50,000 € | Work budget

6.5 % | Net return

The project

Bordeaux centre | 4-Bed | 85 m² surface

The neighbourhood:
Transport links | Students | Shops | Green spaces | Cultural spots | Neighbourhood with personality

A flatshare, anyone can find one. A flatshare in the centre of Bordeaux, close to schools and self-financed, is another story.

A story made easier despite everything by the greater contribution that banks ask from expatriates, usually between 15-30% (you can’t have everything Laurent!). The property hunter ended up finding the perfect asset, even if we would not necessarily have bet on it at first sight. Unused spaces, dubious aesthetic choices, end-of-life electrical installations… you had to use your imagination.

An extensive renovation works budget was part of Laurent’s strategy, enough to give the renovation team plenty of challenges.

The Renovation

50,000 € of work | 9,000 € of furniture

First decision: get out of the “Soviet model apartment” aesthetic and bring it into the 21st century.

Say goodbye to wood panelling, wallpaper and lace curtains. The carpet too, of course. Above all, we did what we do best: optimise space, recover lost square meters, create a fourth bedroom, and upgrade electrical installations, sound and thermal insulation, and furnish with our pack to enhance the buy-to-let rental potential. And voila…

The Tenants

Rented in 2 weeks | Flatshare | Rented through Amastas Flatshare Company

Once the building site is completed, and the decoration is in place, the search for tenants begins quickly.

For a flatshare of this type, the tenants can come from different backgrounds: students, young professionals, trainees or apprentices…

Financial Strategy

181 €
Monthly cash flow

90,000€ Personal Deposit

50,000 €  Work budget

6.5 % Net return

Selling price including vendor’s agent fees
275 000 €
Renovation work
50,000€
Furniture
9,000€
Notary fees/Stamp duty
20,918 €
Investment fees
13,300 €
Bank fees
3,582 €

Personal deposit
90 000 €
Loan mortgage term
20 years
Interest rates
1,4 %

Annual rent excluding charges
24,000€
Rental expenses
2,400€
Annual occupancy rate
10.5 months/year ratio

Co-ownership expenses
1,388€
Property taxes
1,100€
PNO Insurance
275€
Rental management
2,003€
Mortgage annuity
– 16,163€
Annual revenues
23,100€
Annual expenses
4,766€
Annual cash surplus
+2,171€

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