In view of the current world crisis, the good idea for those who desire to put their money somewhere safe is certainly to invest in a property. Although no market is secure, pouring one's money in this market is actually the most secure way to protect one's savings and a Leaseback property is definitely a good idea.
A Leaseback property suits people who use it only a few weeks during the year and who want to rent it the rest of the time. By signing for a French leaseback scheme, you can become the freehold owner of a furnished property, for a renewable period of 9 to 11 years. The fix rental you get is generally linked to the inflation rate. Being helped by a property management company will enable you renting your property all year long and receive a return on investment between 4% and 6% of the property price. If you decide to rent it without a property management company, the average return can be of 8% ... but no guarantee that it will be rented all year long... and you will have to deal with the repairing work, refurbishment, bills, taxes, bad tenants, etc.
There are two different ways to invest in a leaseback property. An interest-only mortgage means you will have a minimum cost every month and start to earn money after a few years. After 15 years (to avoid capital gain tax) you can decide to sell it and to make a profit on the sale as the price of the property is most likely to increase on a long term basis.
If you are more looking for an extra income in the near future, then the monthly repayment is a better solution for you, as you will enjoy an income in euros as soon as the mortgage is paid back. You can also decide to sell it and keep the full amount of the sale.
What's more, the value of the property will also increase, which is a potential capital gain... definitely a good idea for those looking for a safe place for their money.
Investing in a Leaseback property consequently enables you to put your money somewhere safe, but also to earn more and to go on holiday in France!
Investing in a French Leaseback