Sale & Leaseback near Paris

M

Michael A

Guest
Hi all

Am looking at investing in a sale & leaseback thing near Paris / Eurodisney offered through overseasproperties.com and wondered if anyone has looked at this and come to any negative conclusions. Or if anyone has any opinion on overseasproperties.com themselves?
A 380 sq ft 1 bed costs 143k plus vat with a 5% yield including 2 weeks usage.

Seeing as this development has mostly been sold to Irish ppl so far I wonder if theres an opportunity to build a mini-forum for investors & potential investors to discuss aspects of it.

I have read all the posts on this forum, and so am aware about the 'unknown' future of sale & leaseback sites in 20 years time etc. But so far this offering is looking pretty good to me and the agents are conducting themselves in a reasonable manner.

My queries so far are ...
  • The notaire fee of 5% of the net of vat price seems quite high...
  • And will French ppl be happy to live in 380 sq ft appartments for any length of time? (I mean in 20 years time when you might have to lease it yourself)
  • And is the price expensive relative to other local opportunites there (maybe I'll need to do on the ground research in Paris itself..)
I would welcome any thoughts.

Any happy 2006!

M
 
Hi Michael,

Like you, I also like the feel of these French sale & leasebacks, although fear we may be too late to get the best of them ...

The notaire fee of 5% of the net of vat price seems quite high...

I think it also appears high, I think I've seen 3.5% elsewhere, but I won't swear to it. I suspect it's a similar situation to solicitors fees in Ireland & think, all other things being equal, it might make sense to use the notarie recommended by the company your buying your unit from (overseas in this instance)

And will French ppl be happy to live in 380 sq ft appartments for any length of time? (I mean in 20 years time when you might have to lease it yourself)

I'm not convinced. As far as I can see, these units are constructed specifically for short term use, by holiday makers or buisiness users, depending on their location. I'd suspect most of us would quickly fee like we were in a prison cell after a few weeks in such a small unit, assuming we were living there, rather than just showering & sleeping there. Out of interest, have you asked OverSeas what they feel would be a likely future use for the apartment & if so, what have they suggested ?

And is the price expensive relative to other local opportunites there (maybe I'll need to do on the ground research in Paris itself..)

Absolutely no idea, this is where you really need to put in the leg work yourself, or else take a punt based upon the sale & leaseback deal, trusting the company you buy from. TBH, the fact that so many of these packages are now being marketed to the Irish, makes me wonder a bit ?


There are lots of links on AAM to various discussions which may be of interest to you, if you've not already read them, including the following:

http://www.askaboutmoney.com/showthread.php?t=11979&highlight=french

http://www.askaboutmoney.com/showthread.php?t=13524&highlight=french

http://www.askaboutmoney.com/showthread.php?t=10259&highlight=french

http://www.askaboutmoney.com/showthread.php?t=14521&highlight=french

http://www.askaboutmoney.com/showthread.php?t=8974&highlight=french

http://www.askaboutmoney.com/showthread.php?t=14582&highlight=french

http://www.askaboutmoney.com/showthread.php?t=6172&highlight=french

http://www.askaboutmoney.com/showthread.php?t=6028&highlight=french

http://www.askaboutmoney.com/showthread.php?t=17829&highlight=french

I do agree, a sub-forum or a FAQ from AAM would be very very helpful, particularly given the level of interest in these products btw (Any chance Brendan ? .. please, please, please :))


Cheers

G>
[broken link removed]
 
Garrettod said:
I do agree, a sub-forum or a FAQ from AAM would be very very helpful, particularly given the level of interest in these products btw (Any chance Brendan ? .. please, please, please :))
Click to expand...
I'm sure we'd be delighted to host an FAQ if anyone with knowledge & experience of these topics would care to draft it - any takers?

I'm not sure that there would be traffic to justify a sub-forum. I don't think we see more than 1 post on week on leasebacks, though I'm open to correction on this if anyone fancies a bit of digging around. We've gone away from sub-forums at present, as some users seemed to find it difficult to find the appropriate location for their message.
 
Thanks Rainyday,

Can't say I'd be the expert to put this togeather, sorry but I dont know enough on the subject matter.

... but I do think I'd benifit from it, be it a FAQ or sub-forum.

There certainly have been regular threads appearing on the site, I'd have thought well in excess of 1 a week but they seem to come in spats, as new developments are offered for sale or new companies are covered in the press I think ?

Cheers

G>
[broken link removed]
 
I deal with all the major developers in France and specialise in leaseback properties. As such i am not plugging any particular developer or location. The properties are all over France and are listed on the website at [broken link removed]

The question you need to ask yourself is does the development stack up outside a leaseback scheme. As you rightly ask would people wish to rent the property if they had a choice. Simply use your own housebuying skills - location, price etc, but remember leaseback is generallty a long term investment.

With regard to fees, these are generally less on new build than existing property.

The website is full of relevant information and tries to outline the pros and cons. Please contact me through the website and I will be pleased to answer any specific questions f.rom any of the readers

I hope you find it useful.
 
just an update of the current french property market

the following article appeared in L'Expansion magazine

http://www.lexpansion.com/NLConj/4009.30.138670.html

although in French the title is easy to underrstand " Property prices to decline 30 to 40% in the next 4/5 years"

Source - President of group "particulier à particulier" a company which allows individuals sell their property privately, a very well know medium here in France.

The article states that a change in the market is noted since Sept with a decrease in volumes of sales and an increase in inventory. Official statistics have not picked this up yet.


Based in Paris my own obversations would confirm this, "For sale" signs starting to appear, where there were absolutely none in the past.

Leaseback properties - you really need to do your own research, 9/10 years time who will buy/rent these properties.
 
Hello

I am thinking of purchasing a leaseback property in France. The selling agent has told me that there is no difference tax wise whether borrowing in Ireland or France.
Any information would be greatly appreciated.
 
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