Property for sale in France
Verde Property caters for the growing* number of people looking to purchase a property in France, and using the Internet as the first means of seeking that ideal home.
Property for the investor.
In France it is possible to buy a holiday home or investment property and finance most of the mortgage cost with a guaranteed rental income via a management company who will then rent out the property for the period of the lease (this varies, usually 9-12 years).
There are a significant number of Leaseback companies operating across France, however the majority of these are usually found in typical holiday resorts, either on the Atlantic coast in the South West, the Mediterranean coastline and in many of the larger ski resorts.
The main advantage of purchasing a property under Leaseback is the tax breaks available on new developments. The French government presently repay the entire VAT, currently 19.6% of the price.
Purchase a property under Leaseback and you are the freeholder. Most Leaseback plans given you use of the property for several weeks each year, on top of which you will receive a fixed rental income guaranteed for the rest of the year.
How the Leaseback scheme works.
For those keen on making a hastle free long term investment in a property in France, the Leaseback scheme is an attractive option.
Each company will have specific systems governing rental and availability for the owner, however most will:
Guarantee an annual income over the agreed period, thus if you have purchase using a fix rate mortgage you can guarantee the revenue will cover the mortgage costs.
Maintain the property over the agreed period.
Cover all service charges.
Allow you access for a fixed number of weeks each year at no cost- this is often flexible with you being able to agree extra weeks at a price. (6 weeks is usually the minimum period reserved for your use)
Provide such as a pool (though other facilities such as health spars, tennis, etc may be charged for).
Return the property to the owner at the end of the period - many management companies will agree to continue to lease out your property providing on going rental if this is desired.
Property for use as a business.
The most obvious example of property purchased for business use by the British buyer is the ideal of the rural Gite.
An exact translation of Gite from French to English, is a lodging or shelter. In practice this is more likely to mean anything from a small but pleasant cottage sleeping 2 people, through to a large farmhouse or even Chateau capable of sleeping much of your extended family.
If you are intending your new life in France to be financed by the purchase of a Gite or Gite complex - or indeed you are intending to purchase an existing building and develop, it is highly advisable to first establish demand in the area for holiday homes. Over the past couple of years bookings in certain areas of France have suffered from the large increase in accommodation on offer, thus, take the usual precautions one would take in the UK in deciding where and how to locate and run your business.
Restaurants or café's. It's quite common in more rural areas of France to see restaurants and café's for sale by the local authority. These will often come with the stipulation that the business is to carry on functioning as such.
Property as a home.
Purchasing a property as a main or second home is relatively simple in France. Many of the more stressful elements Brits associate with buying a property are simpler under the French system.
1. After agreeing a price with the Vendor, and signing the Compris - and handing over your deposit - it is highly unlikely you will then gazumped. If the Vendor backs out of the contract at this point they will then be liable to return twice the deposit you have paid to the Notaire.
2. French law requires a vendor to not deliberately hide any problems with the property. Any such faults, they are liable.
* Between June '04 and Jan '05 the number of separate requests on the two major search engines, Google and Yahoo rose from around 20,000 to 40,000. A 100% increase in 6 months despite, or maybe due to, a downturn in the property market in the UK.