Insurance News Archive
Leaseback schemes in France good for investors
UK property investors interested in purchasing French ski property could take advantage of a leaseback scheme, according to an expert in the sector.
Under the scheme, the investor buys the property and then hands it over to the leaseback firm which in turn gives the investor a steady income as well as access to the property.
This scheme could be attractive to pure investors who are not particularly concerned about having access to the skiing facilities, but could prove restrictive to dedicated skiers, said Andrew Beale, director of ski property broker Free Spirit International.
With research revealing that British and Irish citizens own 3.81 million properties overseas, with France one of the more popular destinations, Mr Beale revealed that "some investors do, some don't" use leaseback schemes.
He added: "Typically, leasebacks are a little bit restrictive for just skiers because they may want to use the apartment more than the usage allowance that you can have in the leaseback.
"But for purely investors, they work very well because you get a fixed rental income, you are able to take a certain amount of personal usage for yourself."
He added that investors should do research into the lease back scheme, and make sure it is well established and provides good returns.
19 Dec 2007
