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Poissy, Paris
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Special Promotion - French leaseback opportunity
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Development:
Location: Status: Number of Plots: Completion: Discount: Price Range: Exchange Deposit: Reservation Fee: Poissy
Paris Reserved 29 September 2006 From €96,213 - £262,556 2% Features:
* Parking Available * 12.9% growth * 7% projected growth * 29 units * French leaseback * September 2006 |
Development Summary
About The Development
We are pleased to offer you a new residence in Poissy, one of Frances’ major growing business centres. With a high return and easy access to the major airports, this investment opportunity is ideal for those looking for a ‘pension booster’ or just an extra income for the future.
Benefiting from its privileged location extremely close to Paris and the Seine Valley the residence will be situated in one of France’s world renowned centres for:
1) Research
2) Teaching
3) Industry
Apartments are range from studios to 2 bed units.. The net price after your tax rebate range from 86000 euros to 140 000 euros. The price with Tax and legal fess will be around 103 000 euros to 168 000 euros. The highest yields are found on the studios. Please note you pay the with tax price then receive your tax rebate 6 months after the completion of the building. An accountant is lined up to do this for you so its hassle free !!!
70- 80% mortgages are available. Here is a typical example.
A studio costing 104 000 euros with tax.
You secure a 70 000 euros mortgage and put down 34 000 euros. This will cost you in the region of 450 euros a month repayment basis over 20 years. The actual interest part of that is only 230 euros a month.
Your income is 410 euros a month, so you are just 40 euros a month down. 6 months later you get back your tax rebate of 17 000euros. If you pay it straight of your mortgage, your mortgage drops to 53000 euros. Your mortgage is down now to around 330 euros a month. The property then easily pays for itself. Alternatively you can keep the tax rebate and continue to cover the shortfall as a type of pension payment. You are easily covering the interest anyway.
Other Costs
There are only three small ongoing yearly costs, Tax fonciere – allow 200 euros a year, free for the first two years, Accountants fee – allow 350 euros a year for someone to put in your French tax return and claim the rebate for you . Allow 100 euros a year for a co proprietors fund which covers insurances etc for shared space in the building.
In 20 years time you will own outright an apartment which should with current rent rises be paying you around 9000 euros a year, totally free of mortgage and apart from your initial deposit , the whole place has been bought by youre rental income. To qualify for a french mortgage your total monthly income needs to be at least 3 times your monthly mortgage commitments.
Positives
• Large stable management company offering security.
• Superb location near to Paris in a pleasant suburb
• Reasonable prices
• Opportunity to buy off plan
Your rent increases yearly according to an index called the INSEE.
The rental firm were concerned that the INSEE rate is rising so have limited the annual rent rises to 65% of the INSEE. Historically the payments have risen 70 to 100%. They have done this to protect the company from large rent rises going forward. On a positive note this does mean your rental firm should remain a successful profit making company.
Management Company
Presentation of the property management company : DVS Dom Ville Services.
Dom Ville Services belong to the Group Menguy Investments with a capital base of 1.1 million €. The group has been created in 1995 and has been successfully promoting, designing, building and managing developments for a decade. More than 1.000 units per year are built and sold. You therefore have the security of a strong group being your rentor. Net yields are guaranteed for 11 years by legal contract and vary from 5% to 6% dependent on type of apartment.
20 developments are managed with long term contract with big companies (Thales, Renault….) accounting for 78% of total turnover, 10% turnover is made with students and 12% with other clients.
Average occupation rate is 88%. The group specializes in developing properties close to big cities where there are many head offices, offices and universities which allow them to reach a high occupation rate and positive results and cash flows.
Developments are located close to Metro or railway stations to allow an easy access and are quality developments.
Leaseback Opportunity
France is the most popular destination for European tourists and struggles to cope with demand. 20 years ago the French government recognised this and in order to encourage more self catering accommodation they developed “Leasebacks”. In essence they are new build apartments in designated areas which benefit from tax rebates, equating to effectively a 16.4% reduction. There are currently several leaseback developments in Paris, the Alps and the Cote Dazur. Other regions include; Lanuguedoc and Brittany.
The term “Leasebacks” is used as you must lease the property for a period of 9-12 years to an approved company. This company has the job of advertising, maintaining and renting out the property and makes profits from any bookings. Some of the largest French holiday companies are the renters.
This scheme prompted the Times newspaper to say “BUY A LUXURY apartment in the French Alps and get a cheque from the taxman. It’s an unlikely sounding offer that buyers in the new resort of Arc 1950, close to Mont Blanc, have been taking up with enthusiasm.”
In return you get a guaranteed yearly rental amount (normally paid quarterly) usually 4-6% of your purchase price. You can frequently have free weeks in your apartment if you opt for a lower percentage return, and several companies enable you to use your weeks in other Resorts they own. In this way you could have 1 week skiing in the Alps and two more sunning yourself in the French Riviera.
The rental is also index linked and goes up each year.
The rental amount is revised on the basis of the alteration in the national construction index. The index is published quarterly and the base index is usually that last published at the time the lease comes into effect (in French, the index is called: l’indice national du cout de la construction). When this revision is to occur and the precise basis will often be stipulated in the lease. The revision is usually at around 70% of the variation. You can see the index and the way that it operates on the French office for national statistics website: www.insee.fr.
After the 9-12 year lease period you have several options. You can renew the lease, live in the property yourself or rent it out privately. You own the property freehold from day one and can sell it at any time although your purchaser must honour the terms of the lease during the lease period.
With regards to mortgages, most French lending institutions - Barclays, Credit Agricole, BNP Paribas normally offer 70% of the with tax price or 80% of the tax rebated price, however according to status sometimes an 80% of the with tax price can be lent. When you get your tax rebate this can then equate to a 96% mortgage.
1) Research
2) Teaching
3) Industry
Apartments are range from studios to 2 bed units.. The net price after your tax rebate range from 86000 euros to 140 000 euros. The price with Tax and legal fess will be around 103 000 euros to 168 000 euros. The highest yields are found on the studios. Please note you pay the with tax price then receive your tax rebate 6 months after the completion of the building. An accountant is lined up to do this for you so its hassle free !!!
70- 80% mortgages are available. Here is a typical example.
A studio costing 104 000 euros with tax.
You secure a 70 000 euros mortgage and put down 34 000 euros. This will cost you in the region of 450 euros a month repayment basis over 20 years. The actual interest part of that is only 230 euros a month.
Your income is 410 euros a month, so you are just 40 euros a month down. 6 months later you get back your tax rebate of 17 000euros. If you pay it straight of your mortgage, your mortgage drops to 53000 euros. Your mortgage is down now to around 330 euros a month. The property then easily pays for itself. Alternatively you can keep the tax rebate and continue to cover the shortfall as a type of pension payment. You are easily covering the interest anyway.
Other Costs
There are only three small ongoing yearly costs, Tax fonciere – allow 200 euros a year, free for the first two years, Accountants fee – allow 350 euros a year for someone to put in your French tax return and claim the rebate for you . Allow 100 euros a year for a co proprietors fund which covers insurances etc for shared space in the building.
In 20 years time you will own outright an apartment which should with current rent rises be paying you around 9000 euros a year, totally free of mortgage and apart from your initial deposit , the whole place has been bought by youre rental income. To qualify for a french mortgage your total monthly income needs to be at least 3 times your monthly mortgage commitments.
Positives
• Large stable management company offering security.
• Superb location near to Paris in a pleasant suburb
• Reasonable prices
• Opportunity to buy off plan
Your rent increases yearly according to an index called the INSEE.
The rental firm were concerned that the INSEE rate is rising so have limited the annual rent rises to 65% of the INSEE. Historically the payments have risen 70 to 100%. They have done this to protect the company from large rent rises going forward. On a positive note this does mean your rental firm should remain a successful profit making company.
Management Company
Presentation of the property management company : DVS Dom Ville Services.
Dom Ville Services belong to the Group Menguy Investments with a capital base of 1.1 million €. The group has been created in 1995 and has been successfully promoting, designing, building and managing developments for a decade. More than 1.000 units per year are built and sold. You therefore have the security of a strong group being your rentor. Net yields are guaranteed for 11 years by legal contract and vary from 5% to 6% dependent on type of apartment.
20 developments are managed with long term contract with big companies (Thales, Renault….) accounting for 78% of total turnover, 10% turnover is made with students and 12% with other clients.
Average occupation rate is 88%. The group specializes in developing properties close to big cities where there are many head offices, offices and universities which allow them to reach a high occupation rate and positive results and cash flows.
Developments are located close to Metro or railway stations to allow an easy access and are quality developments.
Leaseback Opportunity
France is the most popular destination for European tourists and struggles to cope with demand. 20 years ago the French government recognised this and in order to encourage more self catering accommodation they developed “Leasebacks”. In essence they are new build apartments in designated areas which benefit from tax rebates, equating to effectively a 16.4% reduction. There are currently several leaseback developments in Paris, the Alps and the Cote Dazur. Other regions include; Lanuguedoc and Brittany.
The term “Leasebacks” is used as you must lease the property for a period of 9-12 years to an approved company. This company has the job of advertising, maintaining and renting out the property and makes profits from any bookings. Some of the largest French holiday companies are the renters.
This scheme prompted the Times newspaper to say “BUY A LUXURY apartment in the French Alps and get a cheque from the taxman. It’s an unlikely sounding offer that buyers in the new resort of Arc 1950, close to Mont Blanc, have been taking up with enthusiasm.”
In return you get a guaranteed yearly rental amount (normally paid quarterly) usually 4-6% of your purchase price. You can frequently have free weeks in your apartment if you opt for a lower percentage return, and several companies enable you to use your weeks in other Resorts they own. In this way you could have 1 week skiing in the Alps and two more sunning yourself in the French Riviera.
The rental is also index linked and goes up each year.
The rental amount is revised on the basis of the alteration in the national construction index. The index is published quarterly and the base index is usually that last published at the time the lease comes into effect (in French, the index is called: l’indice national du cout de la construction). When this revision is to occur and the precise basis will often be stipulated in the lease. The revision is usually at around 70% of the variation. You can see the index and the way that it operates on the French office for national statistics website: www.insee.fr.
After the 9-12 year lease period you have several options. You can renew the lease, live in the property yourself or rent it out privately. You own the property freehold from day one and can sell it at any time although your purchaser must honour the terms of the lease during the lease period.
With regards to mortgages, most French lending institutions - Barclays, Credit Agricole, BNP Paribas normally offer 70% of the with tax price or 80% of the tax rebated price, however according to status sometimes an 80% of the with tax price can be lent. When you get your tax rebate this can then equate to a 96% mortgage.
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