The project Passage Bourg l'Abbé by Baltis

Review of the project Passage Bourg l'Abbé by Baltis

Review's score :

This review is proposed by Sébastien on 03/12/2023

⏰ The project starts on 04/12/2023 14h30
💰 The estimated rate of return is 11% per year.
⏱ The duration of the project is 18m
💼 Minimum amount to invest is 100€

The project "Passage Bourg l'Abbé chez Baltis" analyzed by Sébastien HO-YU-HIN is an interesting real estate investment opportunity. The project involves acquiring and transforming a commercial space in Paris into two T3 apartments, which will be operated as furnished rentals for one year before being sold. There are several strengths to this project. First, the projected yield of 11% is quite high and exceeds the average yield of previous projects on the Baltis platform. Additionally, the operator is committing 33% of their own funds to the project, which shows a strong sense of confidence and commitment. The loan-to-sale ratio is low at 57%, indicating a lower risk for investors. The project also benefits from a good location in the 2nd arrondissement of Paris, known for its residential character and proximity to popular landmarks such as the Louvre Museum and the Forum des Halles. The budget for the renovation works seems reasonable, at 17% of the acquisition price. However, there are some weaknesses and warnings to consider. The acquisition price of €11,700 per square meter is relatively high compared to the average price for apartments in the area, which may impact the potential return on investment. The projected selling price of €21,267 per square meter is also significantly higher than the average and the upper range of prices in the neighborhood, which may make it difficult to find buyers willing to pay such a high price. There is also a lack of information about the construction process and whether there will be a master builder overseeing the works. It would be helpful to have more details regarding the breakdown of the renovation budget. Additionally, the real estate market in the area has experienced a 7% decline in prices over the past year, which could potentially impact the project's profitability. Based on the analysis, I believe that this project has some potential but also carries certain risks. The high yield and strong commitment from the operator are positive signs, but the high acquisition and selling prices, as well as the lack of information about the construction process, are concerning. Overall, I would recommend further due diligence and caution before investing in this project.