THE LEASE BACK SOLUTION
Have you ever thought how wonderful it would be if as a real estate investor you find the means of renting your property, managing it and collecting your net rental income without investing, God knows, how many hours of your precious time?
Without moving a finger for it, hassle free, you can own a property, which will be rented through a management company, with the added advantage that you won’t have to dig in much inside your pocket, thus real estate mortgages are widely available at historically low interest rates (for up to 20 years), which at the end of the day, will all be paid by your future tenant, who by the way, will also pay the bill for taxes, maintenance and even down to the furniture replacement of your accommodation.
With the unique leverage that only real estate investment offers, or to put it in crude terms; with the bank’s money, you can start driving the road of fortune and success that others accomplished millionaires have driven.
The road map is called LEASE BACK program…that’s where you want to go.
Now, let’s see what’s available out there.
With the aim of enhancing investments and new developments, satisfying the ever-increasing demand for accommodations triggered by the growing flow of tourism, the French government introduced a number of innovative investment plans, one of which is the lease back program.
A lease program is one which after buying a property, you grant a management company the right to use it for short-let (tourist rentals) purposes, normally for a period of 9 years, although this can vary from company to company.
You receive in return, major tax breaks from the fiscal authorities, being exempted of VAT (Value Added Tax) and Income Tax!
The management company, will typically guarantee a net rental income of around 6% per year. This return is net of all running expenses and insurance costs.
Everything is being covered, from management fees to city tax, water and electricity charges, heating and air conditioning, even down to replacing the furniture, including spoons and forks.
Now let us be clear; the lease back program has nothing to do with timeshare. You are the legal owner of the property from Day 1. It is registered on your name in the French Land Registry. You are simply allowing a management company to use it for a limited period of time in return for a monthly and guaranteed monthly payment. At the end of the lease back period, the property is yours to do with it as you please. You can continue renting it out, use it yourself, sell it, or perhaps start another lease back program.
And an added advantage is the fact that you can use the accommodation for your holiday breaks for 2 to 4 weeks, free of any charge, and if in case you need to extend your stay, it will be automatically deducted from your rental income.
What else can you ask for?
Our research at PiP-PRIME INTERNATIONAL PROPERTIES- indicates that these lease back programs are available at places not only with good rental returns, but with excellent capital growth as well.
La Defense, Montmartre and Champs de Mars in Central Paris, Nice and Cannes in the French Riviera and different spots in theGenevaLake region, are just some few examples, where these lease back programs are available.
Yes, the sign board reads “Lease Back”….follow it, you will reach PiP and then France.
Bon Voyage!
Joe Weberhofer
Real Estate Broker
PRIME INTERNATIONAL PROPERTIES
Tel: (965) 57 55 825/35
Fax: (965) 57 55 828
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