The project Cannes Montfleury by Baltis

Review of the project Cannes Montfleury by Baltis

Review's score :

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

⏰ The project starts on 14/12/2023 14h30
💰 The estimated rate of return is 11.5% per year.
⏱ The duration of the project is 18m
💼 Minimum amount to invest is 100€

🤖 Review's summary

The Cannes Montfleury project at Baltis, analyzed by Sébastien HO-YU-HIN, is a promising investment opportunity. The project involves the acquisition of a villa in Cannes, which will be fully renovated with high-end amenities and then resold. Here's a quick rundown of the project's strengths, weaknesses, and warnings: ✅ Strengths: - High yield of 11.5%: The projected return on investment is higher than the average yield of previous projects at Baltis (10.84%). - Operator's commitment: The operator is personally committed to 33% of the project, which demonstrates confidence in its success. - Location: The villa is located in Cannes, a city known for its real estate market, with a population of 74,000. It is situated in a residential neighborhood, close to the city center and within 2 kilometers of the sea. - Acquisition price: The purchase price of 4,264 euros per square meter is significantly lower (47% discount) than the average price in the area. - Rework cost: The renovation costs represent 31% of the acquisition price, which indicates a reasonable budget for high-quality renovations. - Market trend: The real estate market in Cannes has been steadily increasing, with a growth rate of 3.8% over the past year. ❗ Weaknesses and warnings: - Loan to Acquisition (LTA) ratio: The LTA ratio of 137% is relatively high, indicating a higher level of debt compared to the acquisition price. - Loan to Sale (LTS) ratio: The LTS ratio of 66% is low, indicating that the project's financing is well-positioned for a successful resale. - No mention of Energy Performance Certificate (DPE) at the exit: This could be a potential issue as the DPE provides information on the property's energy efficiency. - Terrain in copropriété: The property is in a co-ownership arrangement, which may add complexity to the sale process. - No pre-sales: The project does not mention any pre-sales, which could impact the timeline and cash flow. Overall, the Cannes Montfleury project at Baltis appears to be a viable investment opportunity, considering the current housing market in Cannes and the favorable acquisition price. The high yield and the operator's commitment also contribute to its appeal. However, investors should be cautious of the high LTA ratio and the lack of pre-sales. It is important to conduct further due diligence and consider these factors before making an investment decision. Personal opinion: I find this project quite interesting and promising. The location in Cannes, the discounted acquisition price, and the potential for high-end renovations make it an attractive opportunity. Additionally, the operator's commitment adds an extra level of confidence in the project's success. However, it is important to carefully evaluate the risks associated with the high debt ratio and lack of pre-sales. Overall, I believe it's worth considering as part of a well-diversified investment portfolio. Don't hesitate to join the project and use the bonus code BLUERSKY for a little extra incentive! Happy investing!