French Leaseback Properties Still Flying Off The Shelf!
April 3, 2010
It would seem that after the recent recession as the property market regains its confidence that property buyers are going back to basics and selecting traditional, safer and securer global destinations in which to buy second properties.
France, popular back in the 1960s at the degining of the second home era, in particular is seeing renewed investor attention with French leaseback property cited as a key element in the decision making process.
So what is it that makes French Leaseback property such a solid investment?
1. Low deposit required
The current stability of the Euro and poor performance of the pound, investors are eager to reduce their exposure to currency fluctuations by purchasing a property with a low deposit. Off-plan leaseback investment properties like the soon to be launched Marseille property can be purchased with a low deposit and a wide range of mortgages available with finance of up to 100% available.
2. Guaranteed rental income
An important feature of the leaseback scheme is that the owner can generate income by purchasing the freehold property outright and then leasing it back to a management company who are experienced and already well established in the tourist management, maintenance and rental of these properties for a minimum 9-year period (renewable). The owners then receive a guaranteed index-linked annual return, irrespective of occupancy of the property.
3. Personal usage
Leaseback property owners can enjoy the best of both worlds – guaranteed rental income and personal usage. Investors have the option to choose a leaseback formula that has the benefit of weeks of stay at their property every year for a slight reduction in the guaranteed rental income. These weeks may also be used in other equivalent apartments in any of the other properties managed by the management company.
4. VAT rebate
French Vat rebate, currently at 19.6%, on a new build property price is an excellent incentive for buyers. This government backed tax break enables purchases to be effectively made at below market value and if held for 20 years the VAT is not required to be paid back.
5. 40 year track record
In a time where the security of an investment is paramount, buyers can take reassurance in the 40 yr track record of sale and leaseback devised by the French Government. Created as a low-risk long term investment, the method operates within a set framework and is a well established buying method.
Steven Worboys, MD of French property experts Experience International, comments,
“We have had an increase in demand for French leaseback properties especially those in key tourist locations such as the Alps. Our clients want to ensure that their investments are not only secure but that their properties are delivering income as well as personal usage. Leaseback properties perfectly meet these requirements.”
A wide selection of leaseback properties are available to purchase in desirable destinations including a new French ski property leaseback in Sainte Foy, as well as properties in Avoriaz, Megeve, Marseille and Biarritz through Experience International. Contact one of the French leaseback property experts on +44 (0) 207 321 5858 or visit experience-international.com for more information or to view the selection of properties currently available.
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