Leaseback-the facts
Freehold property...
Leaseback is a unique scheme developed by the French government more than 15 years ago to encourage good quality development in tourist areas. Investors buy a freehold property and at the same time sign a lease contract with a property management company who will rent it for short term rentals for a renewable period of 11 years generally.
...with guaranteed return.
In return, investors receive major tax breaks (no vat on the purchase price) as well as a guaranteed return for the duration of the contract. A guaranteed return is typically between 4,5 and 5,5% and is linked to an official index. The management company takes care of the running costs and maintenance. Thanks to tax breaks the income is not taxed during at least the first 10 years.
Most of the investors finance the property with a French mortgage with rates between 3 and 3.7% on 20 years with a down payment of 20% or even less.
Importance of Guaranteed Income
These last few years of poor equity market performance have made it abundantly clear how important guaranteed income investments can be.
Most investor's portfolios contain a fixed or guaranteed income component, typically to manage overall portfolio volatility, to provide an ongoing reliable source of income and/or to acquire enough assets to retire comfortably at a reasonable age at a moment where pensions are clearly questioned.
Setting up projects and adding value
The launch of a guaranteed-income project requires a long study and negotiation process between the developer, the property management-company and C’est La Vie.
Our added value does not come from selecting ready made projects. As C’est La Vie is in charge of marketing and selling the projects on an exclusive basis and we offer to take care of the resale of your investment, we want to be sure that the project will fit all required criteria. Therefore we always are extremely demanding from selecting the right location to the lease contract.
We have built our success on our experience and expertise to offer to our clients the best leaseback and buy-to-let developments in France.
