Apartment vs. French Farmhouse in Carcassonne: An Economic Deep Dive

In the historic tapestry of Carcassonne, France, myriad real estate opportunities beckon. Two distinct choices often bewilder potential investors: the quintessential French farmhouse and the urban apartment building. But in the realm of economic returns, which option reigns supreme? Let's break it down.

8/21/20232 min read

a person walking down a dirt road in front of a brick building
a person walking down a dirt road in front of a brick building

French Farmhouses: An Economic Perspective

  • Initial Investment: A farmhouse, with its sprawling design and adjacent land, generally demands a significant initial cost, especially when factoring in renovation. Take into account a €250,000 purchase price, a reduced €25,000 notaire fee, and €150,000 for renovation, and you're peering at a sum of €425,000, furnishings not included.

  • Potential Revenue: A farmhouse, especially a sizeable one that sleeps 8, can fetch around €350 per night. With an 80% occupancy rate, the annual inflow approximates €102,200.

  • Maintenance and Ancillaries: The bucolic charm of farmhouses also brings added upkeep such as lawn care or pool maintenance. However, the sting might be softened by potential rural tax advantages.

  • ROI: Crunching the numbers, the ROI for a farmhouse in the initial year hovers around 24.05%, given the potential earnings against the estimated costs.

Apartment Buildings: An Economic Perspective

  • Initial Investment: City apartments, while often commanding a higher price per square meter, might spare you hefty renovation bills. Using a similar starting figure as the farmhouse (€425,000 minus furnishings):

    • Annually, a building with 4 one-bedroom units can reel in approximately €80,305.

  • Maintenance and Ancillaries: Urban apartments generally enjoy lower upkeep costs, but they might miss out on the tax breaks that their rural counterparts relish.

  • ROI: Balancing all expenditures, the ROI for an apartment complex in the first year is estimated at 13.95%.

In Conclusion On the economic front, the French farmhouse seems to have the upper hand with its higher ROI in year one. However, urban apartments, nestled in bustling locales, promise quicker turnover due to consistent demand and may present fewer upkeep challenges. Each option boasts its merits; the optimal choice should resonate with an investor's fiscal aspirations, risk tolerance, and vision for the future.

While these calculations rely on average values, they illuminate the potential dividends of each property type. Whether it's the rustic allure of farmhouses or the metropolitan charm of apartments, Carcassonne's real estate realm is rife with promise.

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Please remember, these figures and projected ROIs are rooted in the provided data. Actual outcomes may sway due to numerous variables like market fluctuations, specific property conditions, or unforeseen outlays. Always rope in a local real estate aficionado before making pivotal investment decisions.