25 January 2008

There are a couple of lower budget apartments that I have to bring to your attention urgently.

I believe Ave de Madrid will be open to offers because the couple selling seem very keen to sell as soon as possible – they have bought something else. It is a lovely apartment in a great position, and the garage that comes with it is a genuine asset. There is nothing to do to it – it’s ready to move in to.

Blvd de la Ferrage may sell today. There is probably not time to think about it or dither. If someone wants it we need to get a sale agreement signed immediately – then you have 7 days in which to change your mind for any reason at all before the agreement becomes binding (sort of). One can extend those 7 days a bit because it takes a few days to get signatures etc., and the 7 days only starts when both parties have signed.

Remember that the agreement falls away completely if you don’t get the credit you apply for, but once it is signed there is no going back on the seller’s side – he’s committed by law – no geszumping or playing with alternative offers are allowed in France.

There are more apartment options to follow soon, but these two I feel are very urgent – and we’ll be lucky to get them.

This is an exchange I had with an existing investor this morning who asked about the market here:

Dear Guy
Just as a matter of interest how is this world wide credit squeeze and stock market crash affecting the property markets in Cannes? Not worried just interested.

My reply:
….Fact is there is no evidence of prices coming down – you’ll see that in my next Property Letter. And there’s no evidence that business has slowed. The girls in the agency are busy and have signed sales in the last week. It is not easy to find stock, so there’s no evidence that there’s a rush to market on the part of owners either.

I think what is holding true so far is that this is a niche market and the people buying property here, which is in seriously short supply, are not the same people who need to borrow for their first home – it’s a “rich” market, and the people who own property here also often have disposable funds bobbing in the harbours of Cannes, Juan les Pins and Antibes. And some of those are worth a lot more than their apartments! They say the prices in the centre of Paris are also holding firm, but I think the suburbs of Lyons etc may be suffering.

Ave de Madrid.
One bedroom apartment.

• 42.62 sq.m. of living space.
• Ground floor apartment with large sunny west facing terrace.
• Construction 1986.
• Reversible air conditioning (hot and cold)
• 
  Price is 277 000€.

This very smart apartment is in a good building just a couple of hundred meters from the beaches and Port Canto at the eastern end of La Croisette, and before entering the Palm Beach Peninsula. The owners have made an excellent job of maximising the space available, the floors are newly retiled in earthy beige, and the walls repainted with quality finishes (stucco in the living area and entrance hall). The bathroom and kitchen are modern and well equipped and cupboards throughout the apartment are generous. The living room, bedroom and kitchen all open through glass doors to the sunny patio / terrace which is very spacious, paved for easy maintenance, and bordered by a mature and impenetrable coniferous hedge. The apartment comes with a lockup garage and a cellar in the basement of the building.

The apartment is not right in the centre of Cannes from a rentals point of view, so ranks along with similar apartments in Palm Beach. It is lovely and quiet, will rent for major festivals and summer holidays because it is only two minutes walk to the Croisette, but would suit a longer term rental too if one preferred a more regular and predictable income stream, even for a year or two.

Blvd de la Ferrage.
One bedroom apartment.

• 54 sq.m. of living space.
• Panoramic view of the sea and the Old Town and Le Suquet.
• 3rd floor of 5.
• Aspect full south.
• Wide and deep open terrace with no overlooking buildings.
• 
  Price is 278 000€

This apartment is in a rather ordinary (maybe 1960’s) building but it is right “downtown” only a couple of minutes walk to the Palais des Festivals and the Old Port area of central Cannes. It has been “done up” for sale and “released” onto the market on 24th January. Therefore while I was visiting so were three other interested parties! The walls are painted white, the shutters on all three rooms are new, and the electrics have been checked and brought up to standard. There is a cellar in the basement with this apartment. However, to maximise this marvellous position someone needs to renovate properly:–

• New bathroom and toilet to replace the ‘70s pink one. (+/- €6000)
• New kitchen. (+/- € 8000)
• Retile floors throughout including the balcony (+/- €5000)
• Repainting, finishing, light fittings etc (+/- € 4000)
• Installation of air conditioning (+/- €6000)

It is well worth the effort and the extra €29 000 investment to do a really good job in this part of town.

The living room, bedroom and kitchen all open through big glass doors onto the large terrace. The views are across old Cannes’ rooftops, domes and spires to the Bay of Cannes, with the masts of the boats in the Old Port below. The panoramic sea view stretches from the east, across to the hill and church above the Old Town in the west.

If this apartment is properly renovated to a high standard it will be an assured and popular renter for conferences. Long term rental is also an option if preferred.