The stunning jewel in the eye of The French Riviera, Monaco is one of the most desirable destinations in the world to invest and reside.

Known for its wealthy inhabitants, high roller casinos and harbours filled with the luxury yachts of the super-rich and famous, Monaco really does have everything money can buy

 

Which includes the option to apply for residency and ultimately a Monaco passport, should it be required.

Money talks in Monaco and can buy investors long-term financial security, good quality of life and residency.

Monaco with its relaxed tax laws and open-door policies is a haven for shrewd investors who want more than just a prestige property portfolio.

Monaco

Residential property prices have risen a 180% in the decade from 2006 to 2016.

 

Growth continued at 10.5% for 2017, a growth rate unseen in any other developed economy. By comparison Prime Central London prices grew by a mere 70% over the same period. (Source: Savills Spotlight 2017 Monaco)

With its unique level of wealth protection, nobody in Monaco (including investors) is required to submit a tax return or declaration of assets. Investors and residents enjoy zero personal income tax, zero corporation tax, zero capital gains tax, zero inheritance tax and low stamp duty rates of just 4.5%. This tax free haven has ensured shrewd investors are not penalised for their success - in fact unlike many other countries Monaco embraces it.

An average Monaco apartment in 2016 sold for around €4,300,000, and 1 in 10 properties exceed the €10,000.000 sales mark.

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However the market in Monaco is changing and has done rapidly in the past 12 months.

 

There are substantial profits in buying, improving, selling or letting “cheaper” real estate. The Monaco Government market data released on 20 February 2018 show that locals are capitalizing on this market and that we are not the only ones whom are taking advantages of this opportunity.

The statistics show that the year 2017 saw the highest recorded number of sales since 2006 which is great news. However 84% of transactions involved studios and one-bedroom apartments sold for around €1,700,000 which makes Monaco very affordable.

This change in the market is driven by the large volume of old residential stock in need of refurbishment which locals have recognised displaying a greater propensity to undertake renovation work due to the lack of supply. Most of these local buyers are long-established Monaco residents looking for an investment, aware that new arrivals often prefer to rent before deciding where to buy.

Locals and shrewd investors are also aware of the lack of market liquidity in Monaco. The wealthy remain discretionary vendors with 61% of all Monaco real estate own by just three families whom have not sold in generations. Leaving just 39% of all Monaco apartments potentially available in the sales market. Meaning that investors can rely on long-term tenants unable to purchase a home.

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The rental market is further driven by 850,000 overnight tourists per annum and 50,000 employees that commute into Monaco from France and Italy to work.

 

This is against a local population of less than 40,000 with no new build sales in 2016 and only 50 new build sales in 2017 in a country 202 hectares in size and fully developed.

Therefore selling or letting your renovated property in Monaco can be extremely lucrative with demand outstripping supply.

If you sold your 1 / 2 bedroom newly renovated apartment (2 / 3 rooms) you can look at a (totally tax free) ROI of 35-40% within twelve months.

If you let your 1 / 2 bedroom newly renovated apartment (2 / 3 rooms), these properties are now achieving on average, a fantastic (and totally tax free) €15-20,000 per month for owners.

Now consider the cost of money in Monaco.

1.7% fixed rate on a mortgage under €5m
1.55% fixed rate on a mortgage over €5m

With a conversative LVR of up to 70% - do the calculation ?

 

The financial benefits of investing in Monaco property are clear but the lifestyle quality it also offers are equally desirable.

300 days a year of sunshine, superb international transport links, fantastic schools and health services. Having the very best of everything is a way of life for Monaco residents.

Virtually crime free and one of the cleanest heavily populated countries in the world, Monaco is the ideal location.

Monaco has it all but buyers who attempt to purchase properties in Monaco without inside assistance seldom ever succeed. It is a case of knowing about real estate before it goes to market and knowing the right people and contacts in this exclusive enclave. For a confidential conversation, enquire today.