French Leaseback - "No Brainer" ? Larionvo - whats the catch?

T

The Gooner

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AGain, Larionvo have advertised a French Leaseback in the Center Parc Moselle in yesterdays SBP. Looks attractive at first glance - but whats the catch here ? If something looks too good to be true, then usually it is..
Would welcome any users thoughts / feedback. What about Larionovo - anyone have any experiences (good or bad) with them ?
Thanks.
 
Re: French Leaseback - "No Brainer" ?

Leasebacks are a tough resale. The reason for their existence is a shortage of tourist accomodation in the area. They're trying to fix a problem. But there's no backbone.
But lots of people have bought them. Maybe they're looking for a quiet retreat.
 
Hi attica2k,

Did your last post get chopped?

Do you have any interest in French property we should know about?

Thanks,
aj
(moderator)
 
One thing that does not add up about them (Correct me if I'm wrong)

If you pay 100k for a leaseback at a 5% yield for 11 years. How can you get any appreciation over that period as the % yield is only gradually increased every 3 years. Why would somebody pay 120k, after say 6 years, to buy it from you as their yield gets smaller as the annual yield is only 5% of original amount.

Effectively, capital appreciation is linked to the yield.

Also I believe that if the management company want to sign for another 11 when the first are expired, then they can legally force you to do so!

You will have to subsidise it for 11 years - Only then will it wash it's face
 
Ya - leasebacks have a bad name be it fairly or unfairly.

Larionovo claim 20% appreciation by 2009 - that doesn't hgappen with leaseback.
I've noticed a lot of ads generally by larionovo and I think they far too casually give very misleading comments to influence buyers.
They also have the sunday indo in their back pocket as far as i can see.

Do a search for leaseback.

I remember someone in the past giving a good explanation as to why leasebacks can only ever rise in line with inflation.
 
Just what is the link between Larionova and the Indo ..... more than
'just good friends' me thinks !!!
Should the word ' Advertisement' not appear on any article the Sunday
Independant publish on that particular company ?
And I find the term 'No brainer' really really annoying and I wish all
these jumped up so-called property consultants would stop
using it
 
The Gooner said:
AGain, Larionvo have advertised a French Leaseback in the Center Parc Moselle in yesterdays SBP. Looks attractive at first glance - but whats the catch here ? If something looks too good to be true, then usually it is..
Would welcome any users thoughts / feedback. What about Larionovo - anyone have any experiences (good or bad) with them ?
Thanks.
Click to expand...

One of the catches is that the Moselle is unglamorous and considered by the French to be one of the ugliest, most industrial and depressed parts of France. I know this because I used to live there! Harsh opinions aside, I can't really think why anyone would want to "invest" there. I certainly don't remember any French people expressing a desire to go there on holiday.
 
These properties are villas inside a Center Parcs holiday resort.

We have stayed in both the French and English ones many times over the years.

The attractions are all on site and people rarely visit the surrounding countryside so the location is not important except that it is near centres of population.

Also the occupancy rate over the year is in the high 90s %

We have just booked an off peak week in March next year and there were only 20 properties out of almost 1000 available.

Anyone investing should spend a week or a weekend in any Center Parcs location to get a feel for the product.

Occupancy is guaranteed and full refurbishment.

However this development was on offer a few months ago as well and Larionovo was not mentioned that time... it was a different name.

I recall at that time the owner could utilise the property for free a week each year. That seems to be gone now.
 
If a product mentions 'No Brainer' anywhere in its marketing campaign would every normal human being with half a brain cell not avoid it like the plague? :D It is essentially an agent telling you that you are a moron if you don't buy this product, condescending or what?
 
They even have it on the radio now as well wuth teh term "no brainer" being used.
 
if someone offers to sell you a "no brainer" then you'd have to ask why aren't they keeping it themselves, if it's such a surefire winner? and why are they advertising in ireland? for what reason do french people not want them?
 
Camry said:
Try this alternative offer:

I have a leaseback scheme here in Ireland. I will arrange for you a mortgage of €1,050,0000 for the purchase of a house, which I have chosen and I will buy for €1,000,000. The other €50k will go towards fees and costs.

I will then sign an 11 year lease with you, for an annual rental of €50,000 fixed for 11 years. Included in the lease is an 11 year rollover option that I may excercise at my own full discretion.

What do you think of that as an "investment" opportunity?
Click to expand...

Its a no brainer! :D
 
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