French leaseback property

Re: Fixed Rates Available in France....

Hi Folks,

are there any Irish web sites for companies selling lease back and is there any advantage in leaseback say against going over and buying a place an renting it out to a management company.
 
Re: Thanks Carriglee....

Hi Alan

I passed on the spreadsheet to your email account this evening. Can you apply similar metrics in the spreadsheet (to those you previously used) and post here as requested by Sunnyday. Many thanks.

Regards,
Paidi
 
Re: Thanks Carriglee....

Still nobody heard of anyone who has actually sold a leaseback and if so what their experience was? Strange, and would wonder why of all the sales of leasebacks nobody seems to have sold?

Roy
 
RE: Resales of leasebacks

Hi Roy

It is a question that is asked very frequently on English language forums dealing with French property. I will try to answer it briefly here.

Even though the leaseback scheme is decades old it has only recently been marketed outside of France. A typical lease is in excess of 9 years. Various factors mean that it is disadvantageous to sell during the term of this lease. Therefore, it is rare to find any Irish or UK investors selling. However, if you scout around some of the main websites dealing with leasebacks, you will find some leasebacks for resale. Once the initial term is up then these properties are generally not sold as leasebacks but as 'classical properties'.

If you look at the French market you will find that most French (correctly) buy these as longterm investments for supplementing income and pensions. Again you will find it difficult to find resales. I would be more concerned if the market was flooded with resales as this would raise concerns in my mind about the quality of the investments. If you wish to find resales of leasebacks coming from the French, I'm told it is best to go to local estate agents. I haven't verified this to be true. Hope this helps.

Regards,
Paidi
 
Re: RE: Resales of leasebacks

Hi Paidi,
Gave you the wrong e-mail address. Its one I don't use too often.

Could you resend to tlaw5 @ eircom.net or alanmoore @ deloitte.com and I'll adjust.

Thanks

Alan
 
Thanks for the spreadsheet...

Quite a complex spreadsheet and a bit large for putting up on AAM. Having a closer look at it, it would appear that the French Revenue will allow you offset

A) 10% of the full property price over 10 years and
B) 30% of the full property price over 25 years
C) The total set up costs spread over 5 years.

This all results in you making a technical loss for the purposes of calculating your tax liability in France. Is this all true.

The figure that the spreadsheet does not show, is the tax that one would be liable for in Ireland and I suspect that this might be as high as 42% of the total rental income and best case scenario 42% of the total rental income less the mortgage interest and if this is the case perhaps it would be better to pay the mortgage on an interest only basis.
 
EMG...

The e-mail I sent you bounced back saying inbox is full
 
Re: EMG...

are there any Irish web sites for companies selling lease back
Click to expand...
Try the appropriately named
I'll say this for them though, I sent them a mail over a week ago to see if they could produce a spreadsheet for me which I could bring to the party here, and they still haven't so much as acknowledged my request! Doesn't bode well for when you have a problem!
 
Re: EMG...

Saw an ad in the paper the other day for [broken link removed]

Don't know anything about them but their site is excellent with a useful looking calculator showing the likely net month cost of taking on a mortgage.

I'd be interested in hearing others' opinions.
 
Re: EMG...

The spreadsheets for analysing leasebacks should be widely available from agents. If anyone hasn't got one drop me an email and I will send one on.

Regards,
Paidi
 
Another interesting proposition in todays paper for La Rochelle. They're in the Westbury on 25th/26th march 06.

[broken link removed]
 
If anyone wants an interactive spreadsheet for calculating interest rates, income and capital growth, I would be delighted to send them one which is based on current French bank lending rates.

Please send a private message or contact via [broken link removed]
 
It depends what your buying it for leaseback does not suit short term 1 to 5 yr investors who want full control of their property and who may need to sell it to get funds to fund some other investment. I looked at them a good few yrs ago and was turned off by the lack of flexibility and always having the feeling everyone was getting a slice of the pie but I would have to wait for mine. i would classify myself as that short term investor who wants to organise their own renting and sell when he wants.
There was always just some cloud of suspicion hanging over leaseback a feeling it was abit to good to be true (a bit like those indemnity mortages which sounded like a great idea but turned a little sour) but thats just my view.
 
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