Last week was incredibly stressful because I was selling my studio apartment in the suburbs of Paris. I had found a buyer in June, but it took months for the legal contract to be prepared due to his lawyer’s delays. We finally managed to sign the sale agreement at the beginning of August. You’d think that from mid-June, when the offer was made, to August, when we signed, we would have sorted everything out. Nope.
His lawyer kept asking me for a ton of paperwork, which is normal, but after two months of slow progress costing me time and money, he began asking for information he already had. That pushed me over the edge. It felt like he wanted me to do his job, even though I was traveling with limited internet access and barely any access to the necessary documents.
I responded curtly, telling him that while his client had every right to ask questions, it was his job, not mine, to find the answers. I did provide the answers to the buyer to avoid jeopardizing the sale, but the lawyer’s hesitation caused the buyer to back out. In our area, there’s a seven-day cooling-off period after signing, during which the buyer can cancel.
So there I was, three months worth of condo fees and taxes later, without a buyer, and my apartment was still empty while I was on a motorcycle trip abroad.
I planned to return to Paris ten days later, so it wasn’t a huge deal. I decided to place a new ad a few days before my return and reconsider the pricing. Before, I had listed it for $60K and sold it for $56K, but I wanted to avoid negotiations, so I listed it as “non-negotiable $58K”. I was willing to accept $56K, but luck was on my side: six people showed interest, and the first person who visited agreed to buy it for $58K! She even had me sign a document confirming the sale and the price on the spot.
We were set to sign a formal agreement with the lawyers that week, using the same lawyer to streamline the process. But things went wrong again. The lawyer informed her that she might need to pay $5,000 in backdated condo fees, which hadn’t been approved over the past few years. This freaked her out, and understandably, I was also concerned. I spent an entire evening reviewing the condo’s financial documents and found no such fee. I called her back, but she struggled to believe me over her lawyer. Eventually, I convinced her to meet at the lawyer’s office, where, after hours of going through the accounts, the lawyer admitted there was no such fee. However, because the lawyers hadn’t prepared the paperwork, we lost another 10 days—costing me an additional $150.
Throughout this time, I was nervous she might find a cheaper or better option and back out. After what felt like forever, we returned to the lawyer’s office and signed the agreement last week. She had an eight-day cooling-off period, which has now expired! The only way she might not follow through is if she can’t secure her loan, but she’s a government worker, so I’m not too worried about that.
I was eager to finalize the sale because I planned to buy land in Guatemala. I needed the funds, and my flat had been empty since March, draining me with fees and taxes for six months.
Overall, six months isn’t too long to sell an apartment. I had listed it with agents for months, but all they did was ask me to lower my price by 30% for a quick sale and a slight reduction in their commission. I struggled to remain polite through that.
Now, I can move forward with my plans for the Guatemalan land. My offer has been accepted, so I’m officially a landowner!
Here’s a breakdown of the finances:
Money OUT:
– Buying price including legal fees: $25,000
– Maintenance fees for the empty flat: $600 ($150 per month for 4 months)
– Rent for a secure door: $800 ($200 per month for 4 months)
– Taxes: $3,600 (9 years at $400 per year)
– Additional fees if the sale goes through: $700 (2 more months)
Total Expenses: $30,700
Money IN:
– Rent over 9 years: Subtracting admin fees, condo fees, and insurance, I received around $800 every 3 months. Total: $28,800
– Selling price: $56,000. The flat’s value doubled five years ago. While I initially faced difficulties selling it due to a tenant not moving out, I eventually managed to sell it close to its peak value.
Total Income: $84,800
Net Profit:
Net profit after expenses: $54,100
That’s about a 17% annual return, though not compounded since I spent the rent money as it came. Realistically, I’ll have $56,000 in hand after an initial investment of $30,700 nine years ago, which equates to around a 5.5% compounded return—still a good deal.
I’m incredibly grateful I bought that studio flat straight out of college. Even though I couldn’t secure a loan to buy something larger, which might have yielded a bigger profit, the return on this investment has been solid.
The past few months dealing with the managing agency and trying to sell have been tough, but now that I have a buyer and the deal is almost final, I can look forward to receiving a substantial check. I’ll use it for building a home on my newly purchased land in Guatemala.
