|
|||
| [Overseas Property - Home] | [Partner Directory] | [Article Directory] | [Property Directory] | |||
Leaseback PropertyClick here >> Leaseback Property detailsFirst we believe that purchase of such a property is an investment primarily and not a holiday home! Leaseback is a product of the French Government looking for a solution to holiday accommodation shortages in tourist areas. The French Government's initiative has produced a large market for this type of property with developments in many areas of France including major towns such as Paris, Bordeaux, Toulouse plus tourist regions such as Brittany, the Mediterranean coast and ski resorts. The French have been, and continue to be, significant investors but the market has been opened to international investors for many years. So investors are welcome from the UK. The success can be measured by the increasing number of developments coming to the market. Some leaseback ski resorts have been sold out within a week of launch! Some of the advantages to consider:
Leaseback PrinciplesThere are two elements - the purchase and the lease for rental. So there is a sale element and property management element to consider. To encourage the purchase of these properties, the French government will refund the 19.6% TVA (tax) - so you are effectively buying at a discount from day 1. On the rental side, you are agreeing to lease the property back for rental. The management company will offer you a guaranteed rental on the property for typically a 9 or 11 year period - after the initial period you can re-negotiate the rental terms. Usually, the guaranteed rental incomes are between 4 and 6% of the purchase price per annum. Often the rental company will let you occupy the property for 2 to 6 weeks per annum as well. The personal use varies according to each development. Properties are sold furnished and maintained in excellent condition by a management company during the lease term.Leaseback SaleIt is important to realise that there are many developers who build the leaseback property developments. So you need to choose a developer who has experience, good reputation and builds good quality properties. Think before you buy!Leaseback ManagementThe company that handles the day to day management of your property needs experience in renting properties, maintaining the infrastructure, and looking after clients who rent the property. Things to consider: what is their experience, how long have they been providing such a service, is the guaranteed rental realistic for the type of property / location?Leaseback MortgagesLeaseback mortgages are readily available depending, of course, on your personal circumstances. Some financial institutions can offer 100% mortgages - does that give you confidence in this type of investment?These are important questions - make sure your "agent" can help you answer all these questions! This fascination is spreading to other countries such as Spain with local variations. If this investment proposition excites you - give us a ring for more information. Next >> French Leaseback |
|||
|
|||
