Too good to be true leaseback in France ?

Has anyone actually bught a leaseback in Paris?

Just wondering if anyone has actually bought one in Paris and if so what kind of experience they had doing so?

Thanks
MAC
 
Paris Leaseback

Have just concluded the purcahase of an apartment (one very small room ) in the centre of Paris. The whole process over an 18 month period went very smoothly my loan is with barclays bank in France. The process involved visiting Paris twice ( Its a hard life!!) but they could have been delegated if required.
The apartment ,which is room in a hotel was finished to a different standard than I was originally informed when buying.This was specified by the hotel management company but in general the standard of finish is higher.
Going to the embassy to sign power of attorney to the French Notary approx 300 euro was also a bit of a painful waste of a day.
 
Congrats Laoisman!

Loaisman,

In earlier threads I saw that people were saying the leasebacks in Paris were VERY SMall, was that you experince. Can you throw any light on the gauranteed rent - is this really gauranteed?

And one last question could you give a ball park indication about the level of rent vs the total cost?

Would be very interested in doing something like this but have found it difficult to find someone who actualy bought one in Paris as opposed to one of the resorts.

MAC
 
Parisian Leaseback

Hi Mac.
Yes Parisian apartments are very small . Ours is 27 Square metres. It is really an investment not a place to bring the family for a week at Disneyland.
We have also forfeited the rights to any weeks accomodation in order to maximise the return. We are supposed to get a discount card for the chain of hotels managed by the management company which allows us to stay in hotels all over France.
Our yield is 5.5% and is incremental related to a property/ construction index in France. Would reccomend viewing site/property before investing. Paris has its own share of neglected districts.
Location,Location,Location.
 
Paris.....

Thanks Laoisman - and bad luck yesterday!

Could you point me in the direction of the agency you used. Earlier in this thread I saw 2 mentioned by Novice Investor which were as follows:

www.frenchbuy2let.com and www.french-buy-to-let.com

I'd be interested in contacting one that has been used (with a degree of satisfaction) by a member of the AAM community. My own preference would be to have access even for 1 week per year as I have visited Paris on several occasions and her indoors loves it. Big question mark I had in my mind was the issues of the "garaunteed rent" - still not exactly sure who underwrites this?

A couple that caught me mind were this one frenchpropertydigest.com/...html?lang= and this one [broken link removed]

Just wondering if you had given any consideration to either of these and if you ruled them out - why?

Thanks for the advice to date.
MAC
 
Paris Leaseback

Mac
The agency I used was Conseil Patrimone (Tell Sonia Ray says Hi ) They helped greatly with all the paperwork including morgtage application.
I went to see the site at Gare Du Nord ,from the website you referred to, a month ago . The building is very nice and the area like most close to train stations is ethnic.
It will be managed by Hotels de Paris which is the managemnt company who look after my apartment (Hotel room).
Bon Chance
 
costs

Laoisman

Can you give an ouline of the costs involved (other than the cost of the property itself)

I've heard of Notaires fees but have also heard that arrangement fee, brokers fees etc can apply.

Can you offer any insight based on your experience?

Thanks
 
Gare du Nord

Thanks Laoiseman,

Have been in touch with the folks doing this development. Apparently the VAT only becomes rebateable after 8 months, so that needs to be considered in terms of cashflow.

Also you can't use this yourself at all - that's a bit off putting from my perspective but still interested. Have a few more queries with these guys at present.

I'll be contacting your suggested link and will kepp you posted.

Many thanks
MAC
 
Leaseback / France

I'm also considering a leaseback in Sth France - has anyone dealt with OverseasProperties.com ? good/bad experience?
 
Conseil Patrimone

I have also delat with this agency

Could not sing their praises high enough

Extremely helpful with every matter, translation of documents over the phone, all contact numbers needed etc

Nothing was too much effort on their part

If you find a property with them that suits you, I would not go any further

BTW, I have no links in any way

stu
 
What is the total outgo?

Can I ask someone with some experience in these French leaseback schemes to outline what cashflow is required.

For example, and taking a property worth €150k, in year 1 what is the expected cashflow required, in year 2, and then years 3+.

Eg yr 1 €10k, yr 2 €2k, yr 3+ €1k

What I am attempting to establish, is if property prices remain flat, how much I will be required to pay to maintain the investment.

As a further favour, could people itemise what the amounts involved relate to - thanks.
 
Link

This link on CP's website might be of some help.

[broken link removed]
 
leaseback scheme france

Did anyone get a mortgage here in Ireland?
Is it true there is a 2000 euro fee to apply for french mortgage?
 
..

I think it depends on the mortgage provider. I've heard that some England-based banks have established a presence in France in response to the demand from England-based residents wishing to buy there. Not sure whether they also apply fees.

In any event, the capacity to claim tax relief on the interst element of your repayments means it's probably still worth your while to borrow abroad, notwithstanding the initial set-up costs.
 
leaseback scheme france

spoke to revenue in Ireland.
From a previous reply on this site my tax liability in France is 20% of income. Speaking to the revenue, as a PAYE worker I would then be taxed in Ireland at 42%. Due to double taxation laws the tax I paid in France would be credited and I would pay in Ireland 22% tax.

My point is that whether I get the mortgage in Ireland or France my total tax liability will be 42%.
So I get a mortgage in Ireland and the interest on my loan can be used as a deduction against the income from france. Any thoughts?
 
Re: leaseback scheme france

My point is that whether I get the mortgage in Ireland or France my total tax liability will be 42%.
Click to expand...

The French government will tax you at 20% of income in that country
If you have no borrowings in that country they will tax you on the gross income at 20%
If this was higher than the liability in Ireland then there will be none in Ireland
But it is possible that 20% of gross income in France could be substantially higher than 42% of net income over all
 
leaseback scheme france

Thank-you, understand.
 
Re: leaseback scheme france

From what I hear, renting in France can be an absolute nightmare from a landlord's point of view. The odds are very much stacked in the tentant's favour - they have far more rights and much more security of tenure than tenants in Ireland, plus there is a lot more rent-fixing by local authorities on private dwellings.

A friend's sister inherited an apartment in Paris - couple staying there were paying virtually nothing cos of rent control, it took her ages and loads of hassle to get them out so she could sell it.

Just a warning!!
 
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