Innes & Gunn
French Leaseback Investments:
French Leaseback Investments
We recommend investment in French leaseback property. These are hassle free investments which bring a guaranteed rental return, tax efficiency and no hidden costs.
Property ownership is freehold and fully furnished. Legal documentation is dealt with by a “Notaire” who is a government official and checks all the documentation provided by the developer to ensure safe transfer of legal ownership.
As owner you are entitled to make personal use of the property and benefit from a 15 – 20% discount on the use of other Pierre & Vacances resorts.
We work with Pierre & Vacances in the promotion of their Center Parcs villages at:
Domaine des Hauts de Bruyeres, Sologne – price range €230,000 to €319,000 – guaranteed net rental return up to*
4.2%
Domiane des Trois Forets, Moselle – price range €225,600 to €320,500 - guaranteed net rental return up to* 4%
* depending upon the level of personal use
Hassle Free
The property is fully managed and maintained. Administration of your personal interests is largely dealt with by the appointment of a local accountant (annual cost approximately €250 plus VAT). You are simply required to sign your approval of rental calculations and bank transfers. A re-sale can be dealt with by Pierre & Vacances internal team, drawing upon the company’s substantial network.
Guaranteed Rental Return
The rental return is guaranteed by the Pierre & Vacances Group parent company listed on the Paris Stock Exchange with a turnover of €1.5 billion in 2010 and 9,000 employees.
The guaranteed income is net of all management, maintenance and insurance costs.
Tax Efficiency
The tax efficiency has several different levels:
- First, a saving of up to 19% VAT on the purchase price, which the developer typically deducts at the outset
- Secondly, an ability to amortise the costs and expenses of the property against a potential income tax liability of 25% resulting in a nil income tax liability for 15 to 20 years
- Thirdly, capital gains tax liability on a re-sale decreases the longer the property is owned and becomes nil after 15 years’ ownership
No Hidden Costs
The costs to be met are:
- The acquisition costs
- Annual fees of an accountant to make your tax returns on the property income (to ensure nil liability)
- Annual land tax
- Renovation costs after 9 years (these are capped at 6% of the property value, but can be met by an annual deduction from the guaranteed rental income of between 0.2% and 0.5%
- No running charges or maintenance costs
