During this period the tourist management company rents the property out to holidaymakers – this is generally their speciality as they can guarantee occupation for much of the year. In return, the investor-owner receives a share of the rental income. This is a guaranteed income that is geared to a specific rental yield percentage on the property, and is index linked.

But what makes the French leaseback scheme a safe investment?
The answer is down to the French government. The sale and leaseback scheme is strongly supported by France’s government. It has to be as it was their brainchild! Basically, if you make an investment in sale and leaseback property in France, you are guaranteed your rental return because of the government’s involvement.

Of course, as with every type of investment that is considered ‘safe’, the returns are not tremendous. Typical rental yields range between 2% and 5%, the higher figure being awarded to the investor-owner if no personal use of the leaseback property is required – i.e. the leaseback property is purchased as a ‘financial only’ property. These rental returns are certainly not going to set the world alight. They do however provide you with a solid investment from which you can count on a level of income that is guaranteed.

Alternative Investment Strategies: Investing in French property can sometimes be a risky business. You invest in a villa or a luxury French apartment and rely on a combination of rental income and capital appreciation to return you a profit. You do your French property research and deduce that you need to make your real estate investment in a location with strong rental demand. The French Alps are perfect you think – tourists to France hit the slopes with their skis in winter and climb the slopes with their hiking boots in summer. The Cote d Azur is great too, especially with Nice Airport being so close to luxury investment spots like Cannes, Frejus and St Tropez.

All of these areas have great potential for French property investments. Tenant occupation is likely to be high and you can charge good rents too. The problem however is that you still have to market your French property to tourists visiting France and obtain bookings from them for the property. If you’ve not got a solid marketing plan behind you this aim can be very difficult indeed. I’ve known property owners unable to rent out their luxury French home for more than 2 months of the year in these sorts of areas, all because they failed to get their property details in front of potential customers.

Enter the French Property Leaseback Scheme

The French property leaseback scheme is an investment initiative launched by the French government in the 1970s. The impetus behind the leaseback scheme was to attract investment in tourist areas to boost the French economy…and it worked!

Where to buy your French leaseback property?
As mentioned already, top locations in which to buy sale and leaseback property in France is in the popular tourist areas. The French Alps offer innumerable opportunities to buy French property in world class ski resorts on a leaseback basis. Ski stations like Val d Isere in the Savoie region of France are popular, as are ski resorts in the Three Valleys area (Trois Vallees), which encompass the likes of Meribel, les Menuries, Courchevel and Val Thorens.

If you are looking for luxury French leasebacks one area to consider is Les Arcs 1950. Here there is a village built by one of the leading leaseback developers in the world – Intrawest France. They have created a magnificent collection of buildings in one of the most picturesque places in Eastern France. The architecture is in the Savoyard style, and the leaseback apartments and chalets are built of traditional French materials, including stone and wood.

Coastal holiday destinations in France are hot investment locations too. In the South of France along the French Riviera there are some excellent opportunities to buy French property under the government-supported leaseback scheme. Property prices are generally highest along the stretch from St Tropez to Monaco. It’s no coincidence that this stretch is also the warmest and sunniest area of France!

Further west along the coast is the Languedoc-Roussillon area. Tipped as the next investment hotspot in France by many investment analysts, the Languedoc Roussillon has a laid-back charm about it that is very different to the glitz and glamour of the French Riviera. Top locations to consider for buying a leaseback property are along the Cote Vermeille between Perpignan and Banyuls-sur-Mer. This stretch of coast takes in some very scenic villages and towns, St Cyprien and Collioure among them.

Travelling west again we ascend up into the Pyrenees Mountain range. Here again are some fantastic leaseback investment opportunities, especially in the Pyrenees ski resorts like La Mongie and Font Romeu. Leaseback property prices are generally cheaper in the Pyrenees than the French Alps. If you are planning to invest in French property on a budget, the Pyrenees could be the region to consider.

Southwest France is always a favoured investment location in France. For leaseback properties the same is true. Leaseback developments inland in the Southwest are often cheaper than along the coast. Places like Biarritz, Capbreton and Arcachon in the Gironde offer magnificent Atlantic vistas that are simply to die for.

Northern France is good for leaseback investment. Okay, it doesn’t have the best track record with the weather in France, but its proximity to the shores of Great Britain and Ireland make it a popular choice with investors who want to buy French property as a holiday home that they can visit for 2-4 weeks of a year, and then rent out on the leaseback scheme for the remainder of the time. Brittany leasebacks and Normandy leasebacks are especially popular. Leaseback properties in Nord Pas de Calais excite some investors as well.

Contact: leasebacks@propertymagnate.com

Leaseback Buying Guide is a post from: PROPERTYHOUSE.org

Technorati Tags: France, investment property, leaseback

Leaseback investment backed by the French Government. Own a cottage at the new Center Parcs development in Moselle amid the magnificence of the Domaine des Bois Harcholins near Hattigny in North East France. Guaranteed rental of up to 4.5% for 9 – 18 years.

Pierre and Vacances — Europe’s leading leaseback and tourist property management company — are building a new Center Parcs in Moselle close to the Luxembourg / Belgium / Germany border. It will offer 870 cottages in the Domaine des Bois Harcholins – a 650 hectare forest in the heart of one of the most naturally beautiful regions in North East France.

The Center Parcs development will provide visitors with access to forest adventure trails, golf, 300kms of marked woodland trails, river & lake activities, aqua play area (heated to 29c all year round), sports hall, spa, tropical jungle, mini-golf, kids activities areas, tree houses, pony club and much, much more.

From June 2007 the area of the Domaine des Bois Harcholins will be accessible via a direct TGV train link from Paris in around a 2hr journey. There is also to be a direct service from London.

The Cottages
The 870 cottages are to be built with their surrounding environment in mind. All will be of wooden construction using quality materials. They will feature wide bay windows, and have large private terraces overlooking the forest. Interiors will be bright and airy and incorporate fireplaces into the lounge areas.

3 types of cottages are available:

Confort Cottages — 3 to 4 rooms, sleep 4 to 6 people, from 52.4m2 usable living space, from 20.2m2 terrace – prices from 211,000 euros.

Premier Cottages — 3 to 5 rooms, sleep 4 to 8 people, jacuzzi bath, from 52.4m2 usable living space, from 20.2m2 terrace – prices from 225,000 euros.

VIP Cottages — 3 to 5 rooms, sleep 4 to 12 people, private outside spa, sauna, en-suite bedrooms, from 69m2 usable living space, from 18.8m2 terrace – prices from 265,000 euros.

All prices include furniture.

The leaseback deal
Guaranteed rental of up to 4.5% if purchased as an investment without personal use. If personal use is required various ownership options are available from 4.25% guaranteed return down to 3% guaranteed returns. A deposit of just 2% is required to secure your property in the first instance. A grant of up to 27,500 euros is also provided to purchasers of these properties courtesy of the local council. This grant is factored into the staged payments at the ‘partitioning stage’, scheduled for 1st quarter 2009. Delivery is scheduled for the 4th quarter 2009. Leaseback terms are initially for 9 years with the possiiblity to renew for a further 9 years. A sales office will be available on-site should you choose to sell the property.

Guaranteed Rental, France is a post from: PROPERTYHOUSE.org

Technorati Tags: France, french leaseback, guaranteed rentals, leaseback