LEASEBACK PROPERTIES IN PROVENCE

Leaseback property is a scheme which allows you to buy a freehold property which is leased back to the developer or Property Management Company for a minimum period of 9 years. As a country which encourages leaseback property scheme, France is the hub of many foreign tourists who want to invest in leaseback property. It is a growing trend especially, with regard to property in the Provence. Leaseback Provence property comes with great value as it yields a solid and steady rental income for the owners.

Located on the Mediterranean Sea adjacent to France’s border with Italy, Provence is a magnificent land with beautiful cliffs, extraordinary natural vegetation and wonderful weather filled with the scent of olives and lavender. As a major tourist destination in France, Provence is the hub of real estate investors also. Leaseback Provence property fetches good rental income which may vary from 2% to 4% approximately. Additionally, leaseback Provence property can also brings benefits in the form of government-backed VAT-refund. 19.6% VAT is refunded within 3-6 months time of purchase by the government.

Properties in Côte d'Azur have excellent leaseback opportunity with regular guaranteed income. The properties that are leased back are generally studios, apartment, and villas by the beach side. These developments have huge demand so much so that their availability is lesser than the demand. Buying property in Côte d’Azur is one of the smartest ways to invest in leaseback property in Provence. In France, Côte d’Azur is one of those places which have quality and highly expensive properties.

With regard to leaseback property in Provence, there is really nothing to worry about the maintenance of property. The property developer or the management company takes care of the property and all its expenses which include insurance and maintenance of the property. Buying a leaseback property is one of the safest investments with a very low risk factor as banks take responsibility for the completion of the project.

The price of the leaseback property in Provence depends on the type of area and property. A studio costs less when compared to large Provence villas or a property by the beachside or a ski resort. Leaseback is available for studios, property with single or more bedrooms, and large Provence villas. Property in the Provence is expensive when compared to the other parts of France as it invites a lot of foreign investments.

Obtaining mortgage in France is a simple process. Generally, one will be able to get mortgage up to 80% of the value of a leaseback property for over a period of 5 to 35 years. The mortgage rate depends on a fixed or a variable rate depending on one’s choice. In fixed rate mortgages, the interest rate does not change but remains constant. Generally, the interest rates would be higher than the variable rates. In variable rate mortgages, the interest rates fluctuate according to the Central European Bank Rates.

Some advantages of Leaseback are guaranteed rental income and tax deduction on account of mortgaged Provence property. It is also a perfect investment for foreign investors as some processes even offer discount for those who use leaseback property for a period of 2-4 weeks during vacation. To conclude, investing in leaseback property in Provence is a good income-generating venture.