The UK property market is a sorry, unpredictable state - many properties have been repossessed and the numbers are rising, the market is unpredictable and who knows when it will stop shrinking? But there are ways of making a return on your investment in the property market without having a bit of a punt. One way is to look elsewhere, shun the UK and search further afield. Maybe even somewhere a bit exotic... OK, that may not eliminate the risk. What about just across the pond? That's right; France is the place to look to if you want to invest in property at the present time.
French leaseback is becoming increasingly popular with UK residents, mainly because it is straightforward and largely risk free, unlike investing in other parts of the world, even other EU countries. For a start there is much less red tape to slow the process down, which also saves on extortionate solicitors fees. In layman's terms a French leaseback property in essence is a freehold buy to let property which compares favorably with a buy to let property in the UK. Not just because of the location culture, and if you're lucky enough to purchase a property in the south of France, the sunnier climate, but because a French leaseback property offers the very tempting advantage of a full VAT rebate of 19.6 per cent on the purchase of the property.
A French leaseback property is also guaranteed to bring in a tax free rental income, so the occupancy concerns are eliminated and you will begin to recoup on your investment almost as soon as you sign the papers. Add to that the stability of the French housing market, especially in comparison to the UK property market. And where else would you invest your money at the moment? Do you really trust the UK banks? And even so, interest rates are at 1 per cent! That's a paltry return on your savings. And as for the stock market, that really is a gamble these days, even if you profess to know what you're doing. Wall Street is at its lowest for 12 years and who knows when this economic downturn will eventually come to a close.
The other advantage of buying a French leaseback property is that France is of course in the EU which means that UK citizens do not have to apply for visas or permits to visit, stay, live or work in France so effectively a French leaseback property could become your second home - a holiday home. And this is what many people are doing. By obtaining a French leaseback property you can let it for, say 9 months of the year and live in it for the remaining three months. The possibilities are endless and all with the minimum of fuss and risk.
As stated, you receive a guaranteed tax free rental income and a VAT cashback payment, plus there is the added benefit of the French banking system which is far more confident than in the UK given that banks in France have been much more responsible with their lending - no 100 per cent mortgages banded about as in the UK - resulting in a property market that is still resilient and healthy. And you do not even have to reside in France in order to own a French leaseback property. The pros very much outweigh the cons, so what are you waiting for? Utilise your idle savings straight away.
French leaseback is becoming increasingly popular with UK residents, mainly because it is straightforward and largely risk free, unlike investing in other parts of the world, even other EU countries. For a start there is much less red tape to slow the process down, which also saves on extortionate solicitors fees. In layman's terms a French leaseback property in essence is a freehold buy to let property which compares favorably with a buy to let property in the UK. Not just because of the location culture, and if you're lucky enough to purchase a property in the south of France, the sunnier climate, but because a French leaseback property offers the very tempting advantage of a full VAT rebate of 19.6 per cent on the purchase of the property.
A French leaseback property is also guaranteed to bring in a tax free rental income, so the occupancy concerns are eliminated and you will begin to recoup on your investment almost as soon as you sign the papers. Add to that the stability of the French housing market, especially in comparison to the UK property market. And where else would you invest your money at the moment? Do you really trust the UK banks? And even so, interest rates are at 1 per cent! That's a paltry return on your savings. And as for the stock market, that really is a gamble these days, even if you profess to know what you're doing. Wall Street is at its lowest for 12 years and who knows when this economic downturn will eventually come to a close.
The other advantage of buying a French leaseback property is that France is of course in the EU which means that UK citizens do not have to apply for visas or permits to visit, stay, live or work in France so effectively a French leaseback property could become your second home - a holiday home. And this is what many people are doing. By obtaining a French leaseback property you can let it for, say 9 months of the year and live in it for the remaining three months. The possibilities are endless and all with the minimum of fuss and risk.
As stated, you receive a guaranteed tax free rental income and a VAT cashback payment, plus there is the added benefit of the French banking system which is far more confident than in the UK given that banks in France have been much more responsible with their lending - no 100 per cent mortgages banded about as in the UK - resulting in a property market that is still resilient and healthy. And you do not even have to reside in France in order to own a French leaseback property. The pros very much outweigh the cons, so what are you waiting for? Utilise your idle savings straight away.
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