French Leaseback Schemes

Does anyone have any experience in dealing with a French company called Imoinvest International in Dublin who specialise in French leaseback Schemes? Im considering purchasing a 1 bed apartment in Normady for approx E100k and was wondering what the pros and cons might be of this type of purchase?

Whereabouts in Normandy?

Why do you want to purchase Leaseback? What attracted you to the scheme? Is it the guarantee element?

Have you thought about what happens after the guarantee period end?

Have you looked at similar properties- ie one bed apartments in the area which are for sale through estate agencies, both new and secondhand and checked the rental market? Even googling Agences Immobilier Normandie will get you some results, but even beter if you put in the town/city.

Have you checked both the French and Irish tax situation both with regard to income tax and capital gain tax on a sale.

JKT said:

Im considering purchasing a 1 bed apartment in Normady for approx E100k and was wondering what the pros and cons might be of this type of purchase?

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I looked at the French leaseback scene in some detail a couple of years ago and in the end decided against for one main reason. Almost all these schemes are set up as holiday villages which would have little or no potential for resale as ordinary homes. In my view this is too limiting and means you're totally dependent on the performance of the tourism industry to get a return on your investment.

There have been many previous posts on this topic. Try a search of the site. The pros and cons have been extensively argued. Yields are low and no-one has afaik ever posted on this board who has actually tried selling on property at the end of the guarantee period. Also, your guarantee is only as good as the financial solvency of your guarantor and I recall one previous poster complaining that there was an assignment of his guarantee to a less well known management company.