Real Estate : French Leaseback Property Increases Its Appeal Due to the Political Turmoil
|
Date Submitted: 2011-05-12 07:47:03 - Article Views: 941 - Word Count: 870
|
|
May you live in interesting times' is a relevant quote for those in the overseas property market in recent years. The economic and political turmoil of recent years has undoubtedly changed the way many overseas investors set out their investment strategy. Far removed from the more powerful cavalier investment approaches of 5 to 10 years ago, the new investment strategies tend to follow the more cautious approach, as investors seek more stable foundations for their capital investment.
As a result of this strategic realignment of investment, the more traditional property markets have seen increased levels of interest from overseas investors in the past two years. In particular, the French property market and its increasingly successful leaseback property scheme have proven highly appealing for investors seeking guaranteed returns away from markets perceived as being potentially volatile.
Far from being a new idea, the French leaseback property scheme has been around for a number of years, offering investors an opportunity for long-term returns via the ever-increasing demand for rental property in France. However, with investors beginning to move away from the more volatile, or potentially high yielding investment opportunities, there has been an increased demand for French leaseback property over the course of the past 12 months.
So what is the French leaseback property scheme, and why is it proving so successful for today's investors and their more cautious investment approach?
The French leaseback scheme allows purchasers the opportunity to become the freehold owner of a furnished property, with the length of the lease usually being between 9 to 11 years (renewable). As part of the agreement, the investor will receive a fixed monthly income which is linked to the inflation rate. This fee will be paid by the property management company regardless of whether or not property is occupied. Many developers offer more flexible rental schemes, with varying levels of personal usage dictating the monthly rental percentage received by the investor. This has proven highly successful in recent times, providing the investor with the flexibility they require to their investment.
Aside from the monthly rental income, the key advantage to the French leaseback property scheme is the VAT entitlement for the investor. With VAT in France currently sitting at 19.6%, the opportunity to purchase a property off plan in France suddenly becomes far more cost-effective in comparison with purchasing a resale unit.
At present the rental returns from French leaseback property tend to be in the region of 3.5 - 4.5% per annum. However, with the demand for holiday property and second homes in France being increased annually by demand from the world's largest tourist industry, the opportunity for capital appreciation often far outweighs the slightly lower rental returns in the long term.
Understandably, the increased security offered in the French property market has proven highly appealing for investors from overseas looking for relative safe havens amongst the political and economic turmoil of recent years. With the global economic recovery still in a relatively embryonic stage, more stable investments such as the French leaseback property scheme, are likely to prove appealing to investors the foreseeable future.
|
 Author Resource Required for Reprint:
Mark Burns works for Offplanworld.tv, a UK based property website, specialising in French leaseback property and who offer a wide range of off-plan property overseas .
|
Tags:
french property  leaseback property properties off-plan property |
|
|
|
-
Ecuador is now more popular than ever among US citizens who want to commit a quality life sans spending a fortune!
Viewed: 0 Times.
Read More ...
-
International Real Estate Listings steps into the Nicaragua real estate industry with a Nicaragua-specific website. Nicaragua property players and investors exhibit keen interest after understanding the unmatched benefits on offer for them.
Viewed: 0 Times.
Read More ...
-
The house or property survey describes and indicates the boundaries in the land and also other physical features. Each household should obtain property survey before purchasing land and before building avoiding conditions may arise from incorrect assumptions. Individuals often join up in any dispute each time a neighbor decides to develop on or near real estate line. Generally if the property owner crosses the road, this may cause a dispute that leads to numerous lawsuits. Disagreements have often occurred from fences that crossed property boundaries, buildings, houses, trees, livestock, and more. Whenever the home or property changes ownership, a survey should be conducted.
Viewed: 2 Times.
Read More ...
-
The summertime is arriving causing all of us will be in anticipation of sport!
Viewed: 4 Times.
Read More ...
-
Something that I saw is that capitalists see Miami Property Listings as a prime pinpoint, getting when of job shortages and oblige more property owners to fall back on their payments, and offering when realty costs recuperate.
Viewed: 5 Times.
Read More ...
-
With the voluminous number of websites in the Internet today, it can be quite tricky to stand out and be noticed by your target market. Being buried underneath tons of other sites offering the same information, products or services as your own website can be a huge disadvantage for any business, brand or individual.
Viewed: 19 Times.
Read More ...
-
Technology itself has taken over just about every service out there, that industries all over the world offered to men and women. These mechanical and technical experts have become so indispensable to humans, that even your 70 year old grandpa and grandma painstakingly had to study their desktops.
Viewed: 19 Times.
Read More ...
-
The name of the game when it comes to real estate investing; is research and knowledge. Simply put, the more you know, the more you are going to make. Knowing everything about the local real estate market is not enough to make money though.
Viewed: 19 Times.
Read More ...
-
The Internet could be a wonderful tool to help your business grow. It can be an inexpensive way to reach a huge mass of audiences and markets as well as to market your products and services to them, wherever they are in the world. It can level playing fields, and let the smaller businesses compete with bigger companies.
Viewed: 20 Times.
Read More ...
-
With all the advances that have been made in technology today, the world is a village. That means that behind a computer screen or internet-enabled cell phone, it is possible to shop, bank, make reservations and even find people online, all with the click of a button.
Viewed: 20 Times.
Read More ...
|
|
|
|
|
| |
|
Disclaimer: The thoughts, ideas, and claims expressed here are the views and opinions of the content author, and not necessarily the views and opinions of Article Memo, ownership, or management. This content is for informational purposes, and not intended to dispense professional advice. Read more about our Terms and Conditions Here. | Report this content Here.
|
Article use is considered your agreement of our Terms of Service.
This work is licensed under a
Creative Commons Attribution-No Derivative Works 3.0 United States License.
Thanks for visiting Article Memo
Copyright © 2011 Article Memo
Back to Top
|
| |
Thursday May 23 2013 - You are at: 
Real Estate Category Rss Feed
Print