French Riveria

Hi,
I was wondering which is better. Leaseback or buy to let in riveria. Does any one have experience renting in Riveria near nice cagnes-sur mer villeneuve loubet region. Are property prices here still growing??

I owrk in a property company in Nice.

In my opinion, buy-to-let is much better. I don't know about Cagnes-sur-mer or villeneuve loubet, but Nice has a pretty strong short-term letting market at the moment. It should improve again late this year and esp for summer 08 - the tramway and all the roadworks/renovations are finishing this sept.

For Cagnes-sur-mer, I heard of a large number of people (mainly Irish), who got stung when they bought new-builds off a well known 'overseas property' company. I know the property manager for the developments, who was left to pick up the pieces and explain to buyers that they probably won't get 52 weeks out of the year at 700 euros per week.

Having said that, all you need is 12 weeks per year at seasonal letting rates to exceed the return from long-term lets. Most people get double this, or more.

Hi Riviera

Any chance you can give us a bit of detail on the properties you offer, expected rental income for buy to lets in peak season etc please ?

... obviously, if it's on your website, great, can we have the link pls ?

Many thanks

Oh, if this casues anyone a problem on AAM then sorry - Riveria, in such circumstances, please feel free to send me info via PM.

Thanks again

Garret,

Probably best to PM me with details on what you're looking for.

Riviera

riviera said:

In my opinion, buy-to-let is much better.

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Can you please explain why?

bacchus said:

Can you please explain why?

Click to expand...

As the entire building is managed by the same company, a buyer is counting on that company to stay in business as long as they have the property. Check the company credentials before purchase or buy from a credible sales agent who has done this. Before agreeing to finance any leaseback property, French banks will investigate the management company so you can feel reasonably confident about the company if banks are willing to lend money to investors for the project.
Resale of a serviced, furnished leaseback apartment in a resort complex or student area is not as straightforward as the resale of a conventional apartment. The buyer population may not be as large.
There are very limited usage rights for owners.

Contrast this with buy-to-let in Nice.

You have full usage rights - come and go as you please. Returns are higher (assuming you bought a reasonably marketable apartment). Rents for a marketable 1 bed in the centre should be between 600 and 900 week in the summer/peak periods. 400 to 600 per week off periods. Number of weeks depends mostly on interiors/location and how much you have advertised the apartment. 20 weeks should be a average. Something wrong if you are getting less than this. 30 weeks is above average/good.

Its a good investment in that rents can be a multiple of standard long-term lets. And resaleability is a lot easier in the centre of a thriving city on the French Riviera.

Leaseback is good if you are risk-averse and want to be away from the main population centres/tourist areas. Best of luck to anyone who bought.

Riviera