A Comparison Of Rental Property Investment Between London And Paris

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Real Estate: A Comparison of Rental Property Investment between London and Paris.
Background
Real estate investment is an appreciated form of long term investments and always preferred to the long-term stock investment. Real estate refers to the property, which is land plus the building and any other development on the land including fencing, building and any other on site improvement. A properly developed real property will mean a consistent flow of income from the rental payments received. Thus the investment realizes a consistent, predictable cash flow. In the long term, the property is bound to increase in value as a result of appreciation, thus its capital value continues to increase. Further more there are other benefits that accrue to buying property. If one buys a house, the investor can live in that house. The property can also be used as collateral for a loan, either to develop the land or for other investments.
Despite these facts, the global financial crisis had its effects on real estate investment. Real estate investment differs in different cities. The differences are as a result of various factors. This essay will analyze real estate investment in London and Paris. London and Paris are the best cities to invest in (Greater Paris Investment Agency (GPIA), 2010). The essay will compare property investment in the two cities as it highlights the factors that are responsible for the differences. An analysis of the effect of globalization and the impact the recent global financial crisis had on real estate investment in London and Paris will be part of this essay. Real estate investing is an investment portfolio that is preferred by many investors worldwide. Investors will require information in the decision making in selecting which city to invest in. This information will be provided in this essay. It should also be mentioned that the global financial crisis can be an advantage for an investor with ready funds. Since the prices of property were affected downwards, buying now will be less expensive. An investor can be advised to buy and wait for the prices to go up for a resale. This essay can be used by those investors who want to take advantage of the opportunity.
Aim
This research is aimed at comparing real estate investment opportunities between two of the most famous European cities, London in United Kingdom and Paris in France.
Objectives
The researcher expects to achieve three objectives by the end of this research;
To identify the factors that lead to the differences in real estate investments in the two cities.
To assess and analyze those success factors that are unique to each of these two cities.
To identify the future trend and existing opportunities in real estate in London and Paris
Consultant Brief
Real estate investment has its unique advantages to the investor. It offers a predictable cash flow when the property is rented out. ...