Keep an eye of the details of the rental indexing offered, some are 75% of the INSEE index each year, some are as low as 50% of the index applied very third year. Maybe some offer 100% !
Consider the situation when you want to sell - what will the yeild be to the next investor if your rental growth has fallen behind the capital appreciation (your expected sell price).
Comments
glennborthwick (not verified)
Watch the index !
29 May 2005To be honest you need to expect that now - why, well typically the INSEE index rose 2-3% per year, perfectly mangeable but last year a rise of 4.81% spooked the companies.
Now what scenario would you want, your rental company going bust mid term because they cant maintain the 4.8% rise, or them paying you a 3% rise and the property being profitable and hassle free for both you and the rental company.
I have 8 year hiostorical insee data of anyone wants it
glennborthwick@aol.com