Find your New Build



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

French leasebacks: what is important to take into account

Location and tourism potential of the area

  • As in any property investment what matters most is location. In a leaseback the reliability of your rental income rests on the occupancy rate of the resort the latter depending above all on the tourist appeal of the region. Being designed to accommodate holidaymakers leaseback resorts are located in tourism areas therefore generally on the seaside, near golf courses, or in the mountains. But in our view all locations don’t have the same value, which is not reflected in the purchase price though. This is why we would recommend leaseback investment in the South of France rather than in the North or the East. As for investment in ski property some recent and unfortunate examples show that altitude and snow level are key. In might seems obvious but it is worth mentioning.
  • Although in principle leaseback rental income is guaranteed, the guarantee is as good as the guarantor and if the management company cannot fill correctly the resort it won’t be able to serve you the agreed rental income and this one will have to be revised. A realistic rental income in any French property is around 4%, be it leaseback or traditional buy-to-let. There are management companies who boast higher rental income. All the better if they can serve it but bear in mind that it might change one day. If the management is running the risk of going under the investors have no other choice than the one of accepting a reduction of the rent. It did happen in the past. The economic crisis had the merit of “cleaning up” the market so the remaining players should be safe but one never knows. Some small management companies have also disappeared during the crisis because they were charging too much for holiday lettings and couldn’t fill their resorts. The resorts were taken back by bigger management companies who had to change the tariff and therefore reduce the yield
  • Therefore another very important point to take into account in a French leaseback is the quality and record of the management company.

 

Quality of the leaseback management company

The French banks financing developers’ building works and lending to property purchasers hold a list of ‘approved leaseback management companies’. Building a holiday resort and running it in a profitable manner are 2 different jobs. Therefore usually developers tend to build the resort and then appoint a managing company within the banks approved list. Nevertheless some companies do both jobs successfully either because they are big enough to master both activities or because they have but a few resorts well located and well managed in a niche market.

Your tastes

All this considered you should also bear in mind that you can use this investment property for your own holiday. So don’t be lured by a better yield if you really don’t like the region or the resort for you personal use.

Our services

Apart from your tastes we can help you on all the other topics and as a matter of fact our service is to ensure that the boxes on tourism potential and quality of the management company are all ticked when we choose to display a leaseback development.