5 ms·

I do own rental properties, including 2 in France. While it is difficult to get rid of a non-paying (or worst paying only time to time), it is not impossible t

by llsf 10y ago

I do own rental properties, including 2 in France. While it is difficult to get rid of a non-paying (or worst paying only time to time), it is not impossible to get rid of them. I did after 3 years of being payed on and off. One thing the landlord can do, is get all the social aid (Caisse d'Allocation Familiale) being sent directly to the landlord. So, at least the landlord does get something every month. Then as mentioned you can go the court route. You can also not renew the lease (granted, in France a lease is 3 year, so be patient) by sending an letter 6 months before the end of the current lease (which I did). The bad tenant left with about 4 missing rents (and damages in the apartment), but I obviously did not give back the deposit. All in all I did lost some money, but that is part of rental properties, that is not CD (Certificate of Deposit) with fixed interest. Like most investments, it incurs some risks too. Having been a renter for years, I understand that renters need some protections and also an easy way out if they have some financial difficulties. There is a balance to find between landlord and tenant. If we could make easy for a tenant to move and find a more suitable place, I am sure tenants will be less willing to stick (and eventually not pay) when their financial situation changes (e.g. loss of job). But right now, it is almost impossible for someone who just lost his job, to seek a smaller/cheaper place. Hence he gets stuck with the current place, with a rent that is not matching anymore his income.

Arizhel 10y ago
>All in all I did lost some money, but that is part of rental properties, that is not CD (Certificate of Deposit) with fixed interest. Like most investments, it incurs some risks too. But are they worth it? Unless you're making a really large profit, it seems like you're far better off just putting your money into an S&P500 index fund or other stock funds. With a stock fund, all you have to do is put your money in there, and wait. With a rental house, you have to deal with repairs, collecting rent, using the legal system when tenants don't pay, etc. Unless you're making a 100% profit, I fail to see how rental property makes any sense as an investment at all in that environment.
- HeyLaughingBoy 10y ago
  One word: leverage. While your $50k investment is making 6% ($3,000/yr) interest in an index fund, my $50k downpayment on a $500k house is making average of 6% ($30,000/yr) equity growth. And I get to deduct the mortgage interest, taxes and maintenance costs of the house while someone else pays most of the mortgage. I should really have kept that property...
  - Arizhel 10y ago
    You seem to be assuming that property values are rising. The 2008 crash proves that's something you can't count on.
    - HeyLaughingBoy 10y ago
      If you look at a few years out of the last 5 decades, sure. If you look at the trend over decades, which is the timescale I'd expect to be looking at for a real-estate investment, yes, prices are rising.
    - deleted 10y ago
      [deleted]
BrandoElFollito 10y ago
when the 3 years rental period is over, you may end the rent (as the owner) only under specific conditions (see for instance http://www.dossierfamilial.com/immobilier/locataire/locataire-proprietaire-les-conditions-de-la-rupture-du-bail-57313 http://www.dossierfamilial.com/immobilier/locataire/locatair...). It is not like you can end the rent to get another renter (except if it is a close family). This is really crazy and have always been a turn - off for me when wondering about investing in flats (I am French)

by llsf 10y ago

Arizhel 10y ago

>All in all I did lost some money, but that is part of rental properties, that is not CD (Certificate of Deposit) with fixed interest. Like most investments, it incurs some risks too. But are they worth it? Unless you're making a really large profit, it seems like you're far better off just putting your money into an S&P500 index fund or other stock funds. With a stock fund, all you have to do is put your money in there, and wait. With a rental house, you have to deal with repairs, collecting rent, using the legal system when tenants don't pay, etc. Unless you're making a 100% profit, I fail to see how rental property makes any sense as an investment at all in that environment.

HeyLaughingBoy 10y ago
One word: leverage. While your $50k investment is making 6% ($3,000/yr) interest in an index fund, my $50k downpayment on a $500k house is making average of 6% ($30,000/yr) equity growth. And I get to deduct the mortgage interest, taxes and maintenance costs of the house while someone else pays most of the mortgage. I should really have kept that property...
- Arizhel 10y ago
  You seem to be assuming that property values are rising. The 2008 crash proves that's something you can't count on.
  - HeyLaughingBoy 10y ago
    If you look at a few years out of the last 5 decades, sure. If you look at the trend over decades, which is the timescale I'd expect to be looking at for a real-estate investment, yes, prices are rising.
  - deleted 10y ago
    [deleted]

BrandoElFollito 10y ago

when the 3 years rental period is over, you may end the rent (as the owner) only under specific conditions (see for instance http://www.dossierfamilial.com/immobilier/locataire/locataire-proprietaire-les-conditions-de-la-rupture-du-bail-57313 http://www.dossierfamilial.com/immobilier/locataire/locatair...). It is not like you can end the rent to get another renter (except if it is a close family). This is really crazy and have always been a turn - off for me when wondering about investing in flats (I am French)