Patrick Monti interviewed by SeLoger

Initially focused on French expatriates wishing to buy property in France, the Osiris group is now an expert in overseas property investment, with a presence in Thailand and Bali. We wanted to find out more about this type of investment, with the help of Patrick Monti, founder of Osiris.

1. CAN YOU INTRODUCE US TO THE OSIRIS GROUP?

Patrick Monti. The Osiris Group is a group of companies that have been active in the real estate sector for 30 years. We are active in real estate transactions, property administration and property development. We first set up operations in Nouméa and Toulouse, then in Montpellier, and more recently in Thailand and Bali.
We specialized in real estate rental investment products, which we began by selling to French expatriates.
Recently, as part of our expansion abroad, we created a new brand called Osiris Investissements, which enables French investors to invest abroad.

2. IN WHICH COUNTRIES IS IT POSSIBLE TO MAKE A RENTAL INVESTMENT THROUGH YOUR INTERMEDIARY?

P.M. To date, we have a physical presence in Thailand and Bali, chosen for their economic dynamism and geographical location, and we plan to expand into other countries.
We chose them on the basis of a number of parameters, including the security of the investment in general, and we also visited the site to fully understand the legal, technical and tax aspects that convinced us.

3. WHAT MAKES INVESTING IN THESE COUNTRIES SO MUCH MORE ATTRACTIVE THAN IN FRANCE OR EUROPE?

P.M. Firstly, it’s a good way to diversify your investments, since the macroeconomic context in the eurozone is quite turbulent, but also because of the attractive yields and tax advantages. Yields are around 7-10%, and taxation is low, not to mention that these countries have signed a tax treaty with France to avoid double taxation. As a result, taxation is calculated according to the location of the property, meaning that investors pay much less tax than they would in France.

4. AREN’T THERE RISKS INVOLVED IN INVESTING IN SUCH A REMOTE COUNTRY, PARTICULARLY IN TERMS OF RENTAL MANAGEMENT?

P.M. In the age of the Internet and easy air travel, remoteness isn’t necessarily the main risk factor. This investment must be analyzed in terms of the country’s development, the growth and prospects of the real estate market, and its own economic situation. But we also have to take into account the legal framework, economic security and tax treaties. If they want to continue to develop, it’s in their interest to play by the rules.

5. IS IT POSSIBLE TO DELEGATE RENTAL MANAGEMENT TO A LOCAL PARTNER?

P.M. We set up a company in each country with associates who were already present locally, and these companies offer a property management service that works in a similar way to what we do here. Similarly, the people who work for these companies are French, which facilitates exchanges.
But please note that we offer different types of management. On the one hand, we sell hotel-managed residences managed by major chains, which means that the owner doesn’t have to worry about monitoring, maintaining and renting out the property.
On the other hand, we also respond to requests from people who want to buy an apartment so that they can use it whenever they want: in this case, our local staff can take care of the rental management.

So you offer support for rental investors?

P.M. Support has been our hallmark from the outset, even when we were dealing exclusively with French expatriates: we organized ourselves to enable them to benefit remotely from a wide choice of real estate products, to help them arrange financing, to carry out the transaction at the notary’s office, and then to help them manage their property.
Today, we enable French people to invest abroad with the same support philosophy: we take care of everything.

6. IS THERE ANY PROTECTION FOR LANDLORDS IN THE EVENT OF PROBLEMS SUCH AS UNPAID RENT?

P.M. In Thailand, for example, if a tenant does not respect the rental contract and does not pay the rent, the contract is terminated within 8 days, and the property is returned to the owner within this period.

7. DO THE COUNTRIES IN WHICH YOU OPERATE OFFER SUFFICIENT POLITICAL AND REAL ESTATE MARKET STABILITY?

P.M. We’ve spent a lot of time studying different countries, and these two areas we’ve chosen are very well known, they’re global spots that have been showing strong economic growth for over 10 years. These are areas where development is very strong, and political stability is undeniable, since we see no sign of revolution or war.

8. CAN YOU TELL US ABOUT YOUR PROJECT TO MARKET THEMED HOTEL RESIDENCES FOR SENIORS? SUFFICIENT?

P.M. Initially, we wanted to develop this project in France, but the cost of services held us back. We’ve realized that labor costs in Southeast Asia are much lower than ours, so we’re thinking about residences with affordable services.
We’ve been working on this project for several years, and we’re trying to be methodical and carefully analyze the ins and outs, but we’re making progress.

9. DO YOU PLAN TO EXPAND INTO OTHER COUNTRIES?

P.M. We’re thinking of setting up in Canada, probably in the third quarter of 2016, as we have an established partner there that we know well. It’s a destination we like because it attracts a lot of French people, and we’ll be offering them both residential and investment products.