Online Calculator | Five Reasons to Buy a French Leaseback Property

Five Reasons to Buy a French Leaseback Property

Would you like to own a luxury holiday property with no expense or management hassle?

Would you like to benefit rom strong capital appreciation?

Would you like a mid to long term investment that is high return and safe?

Would you like the usage of a beautiful holiday home each year at no cost?

Yes is the answer for many people.

As the recession seems to be finishing property investors seem to be buying again but are opting for less risky, traditional, safe and secure investment locations in which to purchase second properties.

France, which has been popular since the 1960s at the dawn 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 makes a French Leaseback property such a solid investment?

1. The deposit needed is low

With the current instability of the euro and poor performance of the pound, investors are keen to minimise their exposure to currency fluctuations by purchasing properties 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 mortgage products are available with up to 100% finance.

2. Guaranteed rental income

The property is leasedback to a management company who are very experienced and already well established in the tourist management, maintenance and rental of the specific property and resorts. The leaseback is for a minimum 9-year period (renewable). A guaranteed index-linked rental income is provided to investors in return irrespective of the occupancy rate of the property.

3. Personal usage

Leaseback property owners have the best of both worlds – guaranteed rental income and good personal usage. Investors can select a leaseback formula that includes weeks of stay at the 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 a real incentive for investors. This government backed tax break enables purchases to be effectively made at BMV and if kept for 20 years then the investors do not need to repay the VAT.

5. 40 year track record

In a day and age when the security of an investment is paramount, investors can take reassurance in the 40 year track record of sale and leaseback devised by the French Government. Designed as a low-risk long term investment, the leaseback 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 seen an increase in demand for leaseback property in Frances key tourist destinations such as the Alps. Our clients want to their investments to be secure and deliver good rental income as well as personal usage. Leaseback properties perfectly meet these requirements.”

A wide selection of leaseback properties are available to purchase in sought after 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 the French leaseback property experts on +44 (0) 207 321 5858 or visit experience-international.com for more details or to view the selection of opportunities currently for sale.

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