Find your New Build



 
Why buy with us?
  • Bilingual independent and free purchasing help and after sales service
  • Registered estate agent under French law with prior experience in property development
  • Focus on South of France and in-depth local knowledge
  • Specialist in new build French property with insider knowledge
  • Careful selection of property portfolio thanks to former experience in development
  • A one-stop-service based in France: no need to ‘hand you over’ to someone else
  • Regular on-site visits
  • Based in South of France where you plan to buy
 
advantages
of new  build
  • Financial advantages : refundable deposit
  • Peace of mind : no renovation hassle
  • Financial advantages : no uncertain & extra costs of renovation
  • Guaranteed quality : easier to let property
  • Financial advantages : low maintenance and running costs
  • Financial advantages : no estate agent fee
  • Peace of mind : financial guarantee of completion
  • A personalised home in a wide choice of properties : an extensive choice of property style, type and size
  • Financial advantages : lower notary fees
  • Financial advantages : better resale & letting potential
  • Financial advantages : reduced land taxes
  • A personalised home in a wide choice of properties
  • Peace of mind : secure and regulated buying procedure
  • Financial advantages : stage payments
  • Guaranteed quality : modern comfort and safety in well-designed home
  • Peace of mind : a ready-to-move-in property
  • Guaranteed quality : lower energy costs
  • Guaranteed quality : latest building regulations
 
 

Characteristics of French leasebacks

Leaseback is a French government-sponsored scheme designed to encourage investment in tourist areas in order to boost the accommodation capacity of these areas. Leaseback is an original way of owning a French investment property which serves you a rental income and allows you a minimal occupancy right.

A hassle free second home with rental income

  • In the French leaseback scheme the buyer purchases a property within a “résidence de tourisme” (a holiday resort) and then leases it back to a management company which will rent it as a holiday letting. The property can be a small villa, a chalet or an apartment. The development itself is a holiday resort with hotel-like facilities, such as a swimming pool, communal gardens, sometimes close to a golf course or generally in coastal locations. The property has to be new build or have been fully refurbished.
  • The unit is in general bought off-plan to the developer and leased back to the developer’s appointed management company for a fix term of 9 years at least. The property is delivered fully fitted and furnished. The resort management company is usually different from the developer which has built the leaseback development.
  • The management company is responsible for all maintenance on the resort and for renting the residence to holiday makers to serve you an agreed and guaranteed rental income of between 4 to 7% of the property value. The leaseback owner can use personally the property for several weeks a year but of course the rental income decreases as the personal use increases. Typically the personal use ranges from 2 to 6 weeks per year. Some management companies offer discounts on the extra weeks you would take on top of the agreed period of time. Some other larger companies who manage a wide selection of resorts offer a swap possibility in other resorts than your own. Therefore there is some flexibility in the scheme that might appear too rigid otherwise.

 

A new top quality holiday home

  • Another advantage of French leaseback is that the property is new build which implies no big works for many years, a property built to the latest building standards and the building guarantees attached to every new build French property (see section on the advantages of new build French property). In this regard too the leaseback scheme enables you to own a hassle free second home that represents a secure investment property in France.
  • Your property is not left empty for months and is maintained so there is no talking of grass mowing, dust removing and pool upkeep for your first days of holidays. This time is precious time so when you arrive you just have unpack your suitcases. You have the advantages of a hotel but a hotel that would serve you a rental income for when you are not occupying it. It seems too good to be true! And yet it is not the only advantage.

A tax free purchase

  • In France a new build property purchase is charged with a 19.6% VAT, except leaseback. Why is that so? As the rents charged to holiday makers by the resort management company are subject to VAT the French government offsets the VAT payable on the property purchase by the buyer. Therefore your French property purchase is made VAT free which amounts to a 19.6% discount.
  • You might legitimately wonder why the French government is so generous on this type of property investment? The leaseback scheme is a government-sponsored scheme that has been existing for many years now and was designed to encourage investment in tourist area and fill a shortage of rental properties. As a matter of fact France is the first country for tourism with over 80 millions visitors each year. So the incentive had to be as high as the stake. French tax payers have another major incentive which is a reduction in their income tax by 25% of the property value over 9 years and they can offset any leaseback related costs against their rental revenue which makes this rental revenue almost tax free for some years. In France the leaseback scheme is known as the Loueur Meublé Non Professionnel or LMNP.
  • The French leaseback scheme offers an ideal way of owning a French investment property that serves you a rental income and which can be used as a holiday home.