How to Invest

"Buy land they don’t make it anymore" - Rockefeller

 WHY INVEST IN REAL ESTATE?

Over the years, real estate is and always has been one of the safest values to invest in. Today in Europe, it is quite common to see investment portfolios of 80% in real estate and 20% in stock. In today’s financial turmoil, real estate offers a safe but solid return on investment. Real estate is a solution for many, especially now, with interest rates at such an attractive low.

What we offer :

  • Selected properties in tourist areas with high growth potential (French Riviera, Paris, Normandy, French Alps, Atlantic Coast, etc).
  • Guaranteed income by top management company for set time period.
  • Financing (up to 80%) for high leverage and better investment return.
  • Tax free investment (VAT refund, no tax on the rental income).
  • Life insurance on the loan that will be paid off in case of death.
  • Investment in a safe political environment, with highest security on real estate transaction, in the top tourist destination in the world.
  • Investment in the EURO monetary zone to balance your portfolio.

By using leverage you can invest a relatively small amount and yet reap the gains on a much larger amount. With tourist properties, rental incomes are received quarterly or yearly to repay the loan, which is seldom the case with other investments. The key to this type of property investment is a management company that takes care of all maintenance and rental, making it a hassle-free purchase for the overseas investor.

Who is leaseback right for?

Here’s the scenario:

1.       You buy an apartment in Nice – list price €200 000 including furniture.

2.       The price you pay is about €160 000.

3.       The cost of acquisition (legal fees, notaries’ fees, etc) is about €6 000.

4.       Your total investment is therefore about €166 000.

5.       If you fund 75% of the price you paid (say about €120 000) by mortgage at 4%, your monthly payments, over 10 years, will be about €1 214. These payments can be reduced by taking the mortgage over 15 years (€887 per month) or 20 years (€727 per month). Or, more cautiously, you could fund 60% of what you paid (€96 000). This would result in monthly mortgage payments of about €971 (10 years), €710 (15 years), or €581 (20 years).

6.       Your guaranteed rental income (at 6% of what you paid) will be €9 600 per year or €800 per month. It is likely (depending on your contract) to increase annually with inflation.

All of your interest and a large part of your capital repayments can, therefore, be covered by the rental income received. Also, the mortgage interest can be set against your French tax liabilities, usually making the income tax free in France for most of the Leaseback period.

If this sounds like a good investment, then the Leaseback is right for you.