Why Buy French Leaseback in 2010?

Low Interest Rates - Fixed for 25 years

The interest rates on mortgages in France can be fixed for the term of the mortgage, say 20 or 25 years. We can currently arrange mortgages in France with interest rates of between 2.3% - 3.5%. Whereas, the Guaranteed rental from the property starts at 3.5% - 4.5% in year 1 and increases every year with inflation.

New Tax Breaks Introduced in French 2009 Budget

Since April 9th 2009, if you purchase a French Leaseback property, French residents can offset 25% of the purchase against their income tax over a 9 year period. The tax rebate is capped at €300,000.

For example, 25% of a property bought for €300,000 would allow a French resident to offset €75,000 against their income tax, over 9 years. So €8,333 per year.

Although you have to residence in France to receive this tax rebate, all owners are benefiting due to the significant increase in demand for Leaseback properties since this tax rebate was announced. (For low tax payers, the tax reduction can be stretched over 15 years, if the reduction is higher than the actual income tax payment.)

19.6% VAT Rebate

Everyone who buys a French Leaseback property receives the up front 19.6% VAT rebate, which acts as your deposit.

Low Risk Investment, In a Volatile World

With a Guaranteed Income that increases with inflation, French Leasebacks offer a low risk property investment that virtually pays for itself. You also don't have any of the hassles that go with normal property investments, like having to find tenants, arrange for cleaners or maintain the property.

Personal Use

On top of these advantages, you can also have holidays in your investment. (The majority of people who own holiday homes in France, only actually live in them for a few weeks of the year.)