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ABDÉ

Abdé invested in France from Luxembourg

How do you finance a house share in France from Luxembourg? Abdé chose the best of four or five loan offers. He negotiated about €10,000 off a flat of about 77 m² in a 1907 building, then turned it into a three-bedroom house share with about €50,000 of works, for a yield of about 10%.

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Old town of Luxembourg under a blue sky
Before and after the works

Abdé’s house share before and after the works

50 000 €of works, approx.
77 m²approximately
3bedrooms in a flatshare
10 %yield, approx.
10 000 €negotiated off, approx.
The shared flat’s living room after the worksThe shared flat’s living room before the works, virtual stagingRecreatedAfter
The difficulties they faced

What Abdé had to overcome from Luxembourg

FinancingOne good offer out of four or five

Abdé received four or five loan offers. Three were poor: a 30% deposit, very strict criteria, and even one bank demanding a pledge over the full price. Another looked fair, but reading it in detail he saw it did not cover the works. The last was excellent.

LettingA third bedroom for the house share

The flat had two bedrooms. Abdé created a third and let it as a house share, each room with its own rent. One of them has its own bathroom and toilet, an extra comfort compared with the other two, which share theirs.

Remote managementFear of works, from a distance

The works worried him, all the more from a distance. Abdé threw himself into them: wiring plan, layout plan, following up with the workers. He spent evenings reading up on the boiler, heating, windows and energy ratings. For his search, he also relied heavily on virtual viewings.

Renovation worksA load-bearing wall in a 1907 building

Creating the third bedroom meant touching a wall. In a 1907 building, a structural engineer studied the original plans: even a wall that does not look load-bearing may have become so over time. The owners’ general meeting had to approve it. Abdé added a condition precedent to the preliminary contract and attended the meeting before signing it. The works came to about €50,000.

The journey, step by step

How Abdé invested from Luxembourg

Old town of Luxembourg under a blue sky
The starting point

Marseille, then Luxembourg

Eight years abroad

Originally from Marseille, Abdé has lived in Luxembourg for about eight years, with his wife and their two young children. Like his parents, he is attached to bricks and mortar: for him, investing means investing in property first.

The turning point

Luxembourg

A main home bought off plan

In Luxembourg, he first bought his main home off plan, and ran it like an investment thanks to a very strong tax advantage. The experience confirmed his taste for property. Next, he turned to older properties in France, where he could renovate and add value.

Old town of Luxembourg under a blue sky
Finding the property

The listings

Following the market to negotiate

Abdé studied the listings to learn the market. He spotted a flat whose price had already been cut. His first offer, about €15,000 below the price, was meant as a shock, while staying under his maximum. He eventually got about €10,000 off, and had the kitchen included in the deed to reduce the notary fees.

Financing from Luxembourg

The banks

Only one excellent offer

Out of four or five loan offers, only one was excellent, when the others asked for a 30% down payment or a heavy pledge. On signing day at the notary’s, Abdé had a bottle of champagne delivered to the branch manager, to keep a very good relationship.

Old town of Luxembourg under a blue sky
Managing the works from a distance

The works

About €50,000 of works

In this flat of about 77 m², Abdé created a third bedroom, then a bathroom and toilet in one of the bedrooms. A structural engineer stepped in and the general meeting approved the work on the wall. He followed everything from start to finish, with a wiring plan and a layout plan.

The result

Today

A yield of about 10%

The flat is let as a three-bedroom house share, for a yield of about 10%. His wife, reluctant at the start of the works, is now very happy with the investment. Abdé is already thinking about the next property, with a bank that knows him.

On video

Abdé raconte the story

“You mustn’t wait: the longer you wait, the more reasons you’ll find to keep waiting.”

Abdé, who lives in Luxembourg
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