Part d'Appart Review: real estate investment for €10

IN SUMMARY

Key figures - Part d'Appart

Should you invest with Part d'Appart?

Part d'Appart offers a fractional real estate investment approach, enabling individuals to acquire €10 shares in residential properties located mainly in city centers. Investments are made in the form of bonds, offering rental income and a share in capital gains when the property is resold. Advantages and disadvantages

Advantages and disadvantages

Why did we write this guide?

Choosing where to invest your money is a complex decision. Equities, PEA, life insurance, ETFs, bonds or even cryptocurrencies all find their place in a modern portfolio, but real estate remains the preferred asset class of the French, although it is often misunderstood. In recent years, a number of companies have emerged with the promise of simplifying real estate investment by removing upfront contributions, improving liquidity and making access more flexible through fractional ownership. In this fast-changing environment, it's becoming harder than ever to know who to trust, and to understand the precise commitments involved in an investment.

We've taken a closer look at Part d'Appart, analyzing the essential elements that every investor should consider before taking the plunge: simplicity of investment, potential gains and options for recovering capital once goals have been achieved.

NB: For the sake of transparency, we would like to specify that we are Harmony, one of these new real estate companies. Harmony enables you to buy shares in properties intended for short-term rental. We believe that all competition is healthy, and that the growth of this market will enable everyone to find their place in it. In this context, providing a factual analysis of other real estate companies through the prism of our sector expertise helps both consumers or investors and the companies that provide them with a service. That said, we are not in the business of providing personalized investment advice or recommendations.

THE BASICS

What is Part d'Appart and how does it work?

Part d'Appart is a French platform that enables individuals to invest in residential property from as little as €10, without the constraints of traditional rental management. It aims to make property investment more accessible, by removing traditional financial and operational barriers.

The investments offered by Part d'Appart are based on the purchase of bonds backed by residential properties located in city centers. Investors receive monthly rental income in proportion to their participation, as well as a share in any capital gains when the property is resold.

Who can invest?

According to the information available on the Part d'Appart FAQ, there is no specific section entitled “Who can invest?”. It says that to invest, all you need to do is create an account, fill in a Know Your Customer (KYC) form and credit your account. This implies that anyone over 18, legally capable and with the necessary funds, can potentially invest via the platform.

No information on whether companies (SCI, holding companies) can invest or not.

How do they find properties?

The platform sources and selects properties according to rigorous specifications. Criteria include location, rental pressure, local development plans, building quality and energy performance. The aim of this approach is to provide the property with a maximum number of guarantees to ensure the long-term future of the investment.

What experience do they have?

Part d'Appart is a relatively recent platform that has apparently offered investment in a "Victor Hugo" project, a T1 studio in Lyon's hypercentre in several €30,000 tranches, with an annual yield of 6.3% and a target return of 11.8%

Part d'Appart claims to draw on more than 35 years' accumulated expertise in property development, management, rental and syndication. This experience stems from its partnership with the management of an established real estate group, as well as collaboration with industry professionals and Fin-Tech specialists.

EASE OF USE

How easy is it to invest with Part d'Appart?

Before you invest your money, it's important to understand what you're getting into. Even if the promise of affordable real estate investment sounds attractive, it doesn't mean it's risk-free or automatically profitable.

What can you invest in?

With Part d'Appart, individuals can invest in bonds issued by a project company dedicated to a residential property. These bonds entitle the holder to a monthly income linked to the rents received, as well as a share in the potential capital gain when the property is resold.

Property and location

Part d'Appart selects its projects on the basis of precise specifications: central location, rental tension, potential for value enhancement, building quality and energy performance. Properties are mainly located in city centers, in areas of high rental demand. The platform is not based on an algorithm, but on manual selection by a team with experience in the real estate sector.

The future development of the project catalog will allow us to observe whether this editorial line is maintained and whether the projects proposed live up to their promise in terms of yield.

Minimum investment

One of Part d'Appart's key selling points is its accessibility. The minimum investment is set at €10, enabling many investors to enter the real estate market without significant capital. This approach encourages diversification, even for beginners or cautious investors. The risk is that it makes thinking less serious, and that the platform has to manage a lot of micro-investors without being able to give them as much time.

‍Documentation and analysis

Each project presented on the platform is accompanied by documents describing the property, the total amount sought, target profitability, maturities, expected rental income, and other financial elements. This enables investors to get a clearer idea before subscribing.

How to invest

The platform is accessible after creating an account and validating your profile via a KYC (know-your-customer) procedure. Once the account has been credited, investors can select the project they are interested in and purchase one or more bonds, starting at €10. The process seems fluid and designed for simplified use, even by non-expert profiles.

POTENTIAL RETURNS

Part d'Appart Returns - How much can you earn?

When you invest in real estate, you're usually looking to grow your capital. At Part d'Appart, as on other platforms, the promise is based on returns linked to the operation of real estate assets, as well as their eventual increase in value over time. Two elements structure this profitability: monthly rental income and capital gains on resale.

Annual rental yields

Part d'Appart announces variable targets depending on the project. Although not guaranteed, the platform offers insurance to partially cover any rental vacancies.

Frequency of rent payments

The platform does not yet specify the frequency with which rents will be paid to investors.

Expected capital gain

When the property is resold, part of the capital gains generated are passed on to investors. This potential capital gain depends on the property market at the time of sale, the initial purchase price and the renovation work undertaken. The platform highlights this prospect as an important source of performance, with target yields of around 11-13%. As always, a high yield potentially comes with a higher level of risk.

Fees and how they make money

Part d'Appart does not detail its fee structure on its website or in its FAQ. It is stated that the platform earns fees on transactions, but the exact amounts or percentages are not specified. For the time being, the absence of clear information on this subject limits transparency on the distribution of gross returns between investors and the platform.

Why not invest elsewhere?

Historically, real estate has shown relatively stable performance, with higher returns than traditional savings products. However, as with any asset, past performance is no guarantee of future returns. It is always advisable to compare with other options (SCPI, equities, life insurance, etc.) depending on your investment objectives, time horizon and risk tolerance.

What happens when you want to sell your Goodcity property shares?

When you invest in a fractional real estate platform, an important element to consider is liquidity: in other words, your ability to get your money back if you wish to resell your position before the project matures.

In the case of Part d'Appart, the bonds purchased are issued for a fixed term (15 years) and could not be resold to a third party during the course of the project. To date, no secondary market is available on the platform. This means that investors must hold on to their bonds until the project company resells the property, at which point the final revenues (including any capital gains) will be paid out.

This limits flexibility. Real estate remains an illiquid asset, and investors need to be aware that they are potentially tying up their capital for several years, depending on the duration indicated for each operation.

Holding period

Each project presented by Part d'Appart mentions an investment period shorter than the contractual deadline (15 years), depending on the characteristics of the property and the value enhancement strategy envisaged.

It will be important to monitor the platform's development to see if it lives up to its advertised terms and offers real visibility to investors and their potential liquidity.

COMPARAISON

Compare Goodcity to other real estate platforms

We will shortly be publishing a comparative guide to the main fractional real estate investment platforms, including Harmony Homes, GoodCity, Fragments, and others, to better understand the differences in terms of fees, liquidity, target profitability and transparency.

THE FINAL VERDICT

Is Part d'Appart a good investment?

Part d'Appart offers an accessible approach to real estate investment, with an entry ticket of just €10 (which has its advantages and disadvantages) and a bond-based model that provides both monthly rents and a share of capital gains on resale.

The platform targets residential properties located in high-tension areas, with manual selection based on quality, location and yield criteria. It promotes a promise of profitability of up to 13%, which seems ambitious and not without risk.

Certain elements need to be clarified to enhance transparency: exact structure of fees, investment and resale conditions, and clarification of average holding periods.

Part d'Appart offers an interesting proposition for novice investors or those wishing to diversify their investments at a lower cost. It remains to be seen how the first projects perform, as well as the development of services such as a secondary market, to judge the robustness and consistency of the model over the long term.