his article is an the running costs and
explanation of the French maintenance. Thanks to tax breaks
leaseback plan, including the income is not taxed during
common questions like ‘What is a the first 10 years.
French leaseback?’ and ‘What are
the risks?’ Finance
What is a leaseback? You can get 80% finance from
local banks with rates on French
Leaseback is a unique process mortgages of
developed by the French between 3.5 and 4% on 20-25 years
government more than 15 years ago with a down payment of a minimum
to encourage quality development 20%.
in tourist areas. Investors buy a
freehold property and at the same Importance of fixed guarantee
time sign a lease contract with a
property management company who These last few years of poor
will rent it for short term equity market performance have
rentals for a renewable period made it abundantly clear how
generally 11 years. important guaranteed income
investments can be.
In return, investors receive
major tax breaks (no VAT on Hassle Free
purchase price) as well as a
guaranteed return for the Leaseback schemes are ideal for
duration of the contract. A people who want a complete hassle
guaranteed return is typically free investment. This is a
between 4,5 and 5,5% and is complete hands off investment.
linked to an official index. The
management company takes care of Risk
virtually no chance of recovering
As long as the sourcing is well the apartment for personal usage
undertaken (sourcing of unless through severe
properties in areas with professional or family problems
potential for resale) and which will be verified.
verification of the management
company is done properly then the Return on Investment
risk for this type of investment
is minimum. The average gross rental yield on
a buy to let opportunity is 4-5%
The Lease Period before costs on extra guarantees.
This can change from area to
The lease period is normally area.
three years. Once you sign a
lease with a tenant you have
About the Author:
Leo O'Brien is the CEO of French Homes Direct. A Paris based real estate agency. Before starting French Homes Direct he was an investment banker for 12 years. For more information on buying a leaseback in France see - http://www.myinvestmentinfrance.com.
Read more articles by:
Leo O’Brien
Article Source: www.iSnare.com 
