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Fractional Ownership vs French Leaseback

Posted by Sextant Properties on December 15, 2020

Do you want to own a property in France but don’t know enough information about property options then look no further. This will tell you all you need to know about fractional ownership and the French leaseback.

As an investment, when buying a French leaseback you will be able to get the VAT back whereas with fractional ownership you are not able to get the VAT back. A French leaseback is a guaranteed source of income paid to you by the property management company regardless of whether someone is occupying your property or not, but with fractional ownership you are not guaranteed an income. There is a wide choice of leasebacks in different areas of France including ski resorts, beach locations and in the countryside, as for fractional ownership there is almost nothing on the French property market as most fractional ownership properties are in Spain, Portugal and Florida. With fractional ownership you share ownership of the property and this can make it more difficult to sell but with a French leaseback you have sole ownership as it is a freehold property.

In terms of buying a property to live in, with a French leaseback you can stay in your property for a few weeks and possibly up to 6 months, with fractional ownership you are limited to staying in your property for a quarter of the year. In terms of property type you can get a bigger and more expensive property with fractional ownership as each of the four people are paying a quarter of what they would have paid if they were to buy the property on their own. With a French leaseback unless you have a lot of money you will be only be able to afford an apartment. As for staying in your property, with fractional ownership the calendar Matrix system can be very complicated. With the French leaseback the owner can use his property whenever he wants but there are certain restrictions such as the peak season normally between 15thJuly-15th August and also the residence is sometimes closed in winter.

In conclusion, fractional ownership is ideal for people with extra money and for use as a holiday destination.  A French property leaseback is excellent as an investment and it offers you the possibility of using your property nearly all year round and all the facilities such as the spa, sauna and swimming pool.

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