::Le Mag Group:: PROPERTY INVESTMENT - SPOTLIGHT ON … COASTAL PROPERTIES

PROPERTY INVESTMENT - SPOTLIGHT ON … COASTAL PROPERTIES, Sep 03

This month, the Beautiful South estate agency take a look at Leaseback and new build properties that are available on the coast

This month, the Beautiful South estate agency take a look at Leaseback and new build properties that are available on the coast
One of the best ways to invest in French property is through the French government’s Leaseback Programme. This was created to encourage development and investment in tourist property in France and it works in a very simple way. You buy an apartment, and then simply agree to ‘lease it back’ to an on-site management company, for year round rentals for a fixed number of years (typically nine). However, you own the property freehold and can also use it a number of times a year yourself.
In return for the leaseback arrangement, you are guaranteed a rental return of 4% to 6% of the property price after most or all management and operating expenses have been deducted. This return can be free of French tax and is indexed to the cost of construction. In other words, the return should increase over the term of the lease.
As an extra bonus, if you buy a new build apartment (off plan), the government will waive the VAT for you. This is a huge saving as VAT in France is 19.6%. For example, if the price of your apartment is 100,000 euros, the VAT saving means that you only pay 83,612 euros. That means that you buy at 16,388 euros below market value, and in effect means 16,388 euros instant equity.
LEASEBACK APARTMENTS, RESIDENCE SIERRA, CANET
Built on a site of 12 hectares, there are a total of 510 properties on site (apartments & villas) and a 3 star hotel with 76 bedrooms and 16 seminar rooms. There are 6 communal pools, 3 restaurants, various bars and shops, tennis courts, spa and children’s play areas. With the leaseback agreement you get the equivalent of up to 3 weeks personal usage depending on seasonal use.
Located only 5 minutes from the beaches of Canet and international golf course of St Cyprien, this is a luxury Leaseback development of apartments with either 1 or 2 bedrooms (44m² to 72m²) on a private residency with a hotel with spa, bar and restaurant and shared sports facilities including swimming pool & tennis courts. Each apartment includes parking, terrace and air conditioning and is fully furnished. Net Yield up to 4%. Available from June 2008. Prices range from 136 000 € for a one bedroom apartment to 240 000 € for a 2 bedroom apartment.
LEASEBACK APARTMENTS RESIDENCE ALENYA, ALENYA
This is an exclusive setting, close to beach and golf, and resides in 3.5 hectares of Pine forest. It’s a 3 star tourism residency with 90 apartments and a 3 star hotel with 49 rooms, luxury spa and well-being centre, restaurant, bar and seminar rooms. There is a communal pool, tennis courts and a multi-purpose sports area. Again, you get around 3 weeks personal use.
Located at the edge of this character village and only 10 minutes from the beaches and international golf course of St Cyprien, this is a luxury Leaseback development of 25 apartments with either 1 or 2 bedrooms (40m² to 60m²) on a private residency with a 3 star hotel with spa, bar and restaurant and shared sports facilities including swimming pool & tennis courts. Each apartment includes parking, terrace and air conditioning and is fully furnished. Net yield up to 4%. Available June 2008. Prices range from: €127,000 for a one-bedroom apartment to 182,000 for a 2-bedroom apartment.
NEW BUILT VILLAS & APARTMENTS WITH SEA VIEWS, FITOU
Situated on a hillside offering panoramic views of the sea and mountains and walking distance into the village of Fitou (famous for its fine wines). The site has 2 communal pools (1 heated) and a Childs pool. It’s a very secure private estate.
Located on the hilltop of the famous listed village of Fitou and with walking distance to the facilities, just beside an old castle and offering breathtaking views over the sea, these are beautiful new built villas and apartments in a secure, private complex with 3 communal pools. There is a choice of 2,3 or 4 bedrooms, each with fitted kitchens and bathrooms, landscaped gardens with automatic irrigation, private garages and/or car parking spaces. Prices have recently been reduced by over 10% and apartments are now available from €131,000 and villas start at €185,000
For further information on any of the properties or on the French leaseback programme, please contact the Beautiful South Estate Agency on +33 (0)4 68 51 22 73 or email info@beautifulsouth66.com.
For a limited period, The Beautiful South are also offering a FREE weekend for 2 people for 2 nights to those looking for a leaseback property in the Canet and Alenya developments featured above. Contact them on +33 (0)4 68 51 22 73 or email info@beautifulsouth66.com