Leaseback sellability

[ildkinvestments]

Wayne

maybe you have bought the incorrect type of investment for a foreigner

if you did not buy LMNP/LMP then the TVA rebate rules have not yet changed, but i will double check with the government office who send out all the rules and regulations for investment properties in france

Are the problems you've had with this leaseback being caused by the management company?

ian

[ildkinvestments]

Seamus

the biggest problems with these investments, is that people think they are buying a property investment that will appreciate and depreciate with the housing market prices

this is not the case

these investments are monetary investments - they appeal to french cash buyers as the standard guaranteed rental return rates are higher than the interest rates offered by savings accounts in french banks

each year, the guaranteed rental return goes up in line with a % of French inflation (normally 2-3%) and thus the value of the investment goes up

if people want property investments rather than monetary investments, then they should buy a private property and rent it out - however, it is not possible to get 100% financing or cashback on these or a guaranteed rental return

regards

ian

[ninjette]

Hello,

My father purchased a leaseback property in Moliets on the south west coast of France approximately 5 years ago. He recently resold his property with the same company he bought it from and is very happy with the process and delighted with the value appreciation!!!

With the money he is investing in another leaseback purchase (with the same company, Maisons de Biarritz) but this time in the south east of France (St Maxime).

His initial contrat was an 11 year leaseback agreement and the only condition for resale was that the contract was sold with the property. I totally recommend the system although I am aware that some companies are not as honest as the one he used...

Hope this information helps

[odond]

I think the leaseback scheme for resale is still relatively unknown, are there any sites that deal with this in detail? I have tried to get info from the net but it's all in French. Does anyone know exactly what leaseback is in French?

[wayneaustin]

Thanks for your reply.

Yes I agree maybe I did buy the wrong investment,sadly after much research before and after the sale it has only come to light following well documented problems with the management company who refuse to pay and ignore all court judgements. Rent a flat riviera /Conseil patrimione/Group Monnier

I have eviction going on this month so we will have to wait and see what happens here,this is of course mine and many othere investors problems about the TVA repayment.

We have had advice that TVA can be repaid up to 12 months after the sale,however the advice I dont feel is reliable and would like some sort of second opionion.

Have to say reading the posts below about everybody being in on these things from top to bottom certainly appears true from my own research.

Can anyone tell me how the commission to the agents is paid on Leaseback.

1/ They are paid a percentage for the intial sale suspect is 5%?

2/ How are they paid on the leaseback contract?

3/ Is there a bonus paid for the length of contract

4/ Is there a bonus for the net yield the agent can achieve?

5/ Are there bonus paid at certain points through the contract

I maybe wrong but suspect this payment system is not as transparent as some would like to believe and would really like to get my head around it so I can start to understand each party's motives within the sales process.

wayne
ps Its great to see some of these crooks getting locked up

[sheymoose]

ODOND

There are several companies who do resales, most of them in French and many resales are handled by local normal estate agents. There are also some leaseback resale sites in English. Like this one:
French leaseback

Note the resale value of a leaseback during a lease is related to the current rent and not to the value of a similar normal property in the same location. So if you sell during a lease you will make little or no growth. But resales can be particularly well priced because of this issue.