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What exactly is a leaseback property? All properties that are fully equipped and furnished, are on a provisional basis and the hotel such as managed reception, breakfast and laundry is a leaseback property. It is a holiday, business, students or senior citizen residence.

Leaseback is the English translation of "LMNP" (non-professional landlords of furnished accommodation), and refers to a tax status not on the property itself

A property purchased under the tax-LMNP is a small company and as such, under French commercial law, with a special provision, by the government to promote this type of investment by the representation of the revenue from the property tax exempt.

Why is such a leaseback property is a good investment? As you can compensate all property related expenses against the rental income, which by your leaseback property, the profit and loss accounts are usually tax free and that is what the system is so attractive to the French and foreign investors.

Thanks to this, the profit and loss account may, in its entirety to repay the mortgage and, if it is paid off, investors will benefit from an additional income. For a (deductible) fee, your French accountant will ensure that all costs are taken into account.

Do not forget also that you will receive a full refund of the 19.6% VAT that is actually a 16.4% discount to the value of the property.

Why did the French government, there are so many incentives to purchase this type of real estate?
Some of the exquisitely beautiful and picturesque areas of France, where it would be impossible to ensure adequate accommodation for a family just a few years ago, now offer a variety of quality accommodations with first class facilities.

In cities where it was very difficult to find short term rentals for business travelers or people who are not in a hotel, the demand for this type of housing and more than the supply - and the government estimates that 200, 000 beds will be necessary Seniors residences and an additional 200, 000 student accommodation units in the next 20 years.

Thanks to the French leaseback scheme, the majority of accommodation to offer in French ski resorts and is owned by French citizens and taxpayers.

If a property investment, it is very important to have a professional qualification, able to advise you on all aspects of your purchase, including the careful selection of location and management company. To protect your legal rights, it is advisable to purchase through a licensed French agents, in possession of professional indemnity insurance.

A leaseback property is usually as a long-term investment for the additional retirement benefits for their owners. However, it is possible to sell at any time, and most developers have their own sales offices that can help with this. If the property is well located, by a strong management company and the asking price is reasonable, you have no trouble at all selling your property.

Capital growth is stable and regularly throughout France, especially in coastal and ski resorts and real estate market remains secure in this country. Just beware of extravagant promises: 20% annual appreciation is not realistic.

A French leaseback property without personal occupancy hovers around 5%, in addition to the continuous appreciation of the invested capital: an ideal opportunity to invest now for your retirement and for building your family real estate portfolio.

While some features are only available for investments, the other will be calculated on a personal allowance and your investments can double as a holiday home. In most cases you will have the opportunity to exchange your weeks for personal use, the use of another property by the same management company, so you actually spend your holiday in another area of the country each year, without additional costs.

Property expert Catherine Harvey is with the purchase of the French leaseback as a wise investment. To learn more, please visit http://www.premierfrenchleaseback.com/