Leaseback back is a unique, positive investment solution for purchasing new property in France. Well managed properties such as the latest My-French-House projects at La Butte aux Cerfs, in Vire, Normandy, Residence Kerbotez at Landevant, South Brittany and Les Jardins de Lestayrie in the Midi town of Graulhet, have the potential to provide leaseback purchasers with guaranteed annual income rentals up to 6%.
All new properties in France are subject to VAT but by agreeing to lease it back to a rental management company for a minimum of nine to 11 years VAT is, in fact, eliminated from the purchase price. And over the period the 100% guaranteed income from the annual rent repays the mortgage, including interest.
So what you end up with is a virtually trouble-free investment which you can live in free of charge for two to four weeks every year, with the firm knowledge that for the other 11 months you’ve got a tidy income rolling in!
Leaseback properties are usually bought “off-plan” on a development that will enjoy all the benefits and conveniences of local sports facilities, swimming pool, integral leisure provisions, restaurants and so on. And, like La Butte aux Cerfs, Residence Kerbotez and Les Jardins de Lestayrie, are in the most popular parts of France, easily accessible by road, rail and air.
Wherever you are from - in or outside of the EU - you can buy one or as many leaseback properties as you like. Obviously you have the certain peace of mind knowing that however many you own they will be expertly looked after by the management company which is also responsible for paying all the utility bills. They also settle any local rate requirements, except for Taxe Foncière, which is your responsibility.
You can sell a leaseback property at any time but, depending on how long you have owned it, you will have to repay the relevant portion of the VAT to the French government. If you sold it within five years you would have to refund the total VAT amount.
At the end of the leaseback period you can either sell the property or live in it yourself. However, because leaseback is such a sound investment, at the end of the term most people remain in ownership and automatically renew their arrangement with the management company, so their rental income continues uninterrupted.
