property for sale dordogne

property for sale dordogne
French leaseback property, also known as LMNP for Loue meublé non-professional, was in the early 1980s by the French government to reduce the amount of holiday accommodation available.

French leaseback investment property

French leaseback property is purchased primarily for investment and a relatively low risk, a smooth, long-term, steady rental income investments is that substantial tax benefits. Simply put, it is a guaranteed rental scheme.

Leaseback Property which is free, is "leased back to a pre-selected asset for a fixed term, usually nine o'clock-11 o'clock years, but at 18 years from the beginning. The management company and can deliver the things that a guaranteed rental income. The guaranteed rental income rather between 2.5% and 6% per year, depending on the property, its location and whether you will leave her in it. Different management companies offer different rental incomes.

Buying property in France

When buying French leaseback property, it is important to check the contract to ascertain the amount of personal use allowed per year, as these may vary.

At the end of the first fixed term and depending on the contract, you can either: exit the lease or renew it with the management company. At this point you should be able to negotiate your rents upwards. It is very important that you understand the terms of the contract and the reputation of the management company.

While capital may occur leaseback should in principle as a means for receiving a guaranteed rental income (yield).

French leaseback property tax advantages

French leaseback property attracts significant tax advantages. Under the conditions of the scheme, leaseback property qualifies for a 19.6% tax rebate, for example, if the price of the leaseback property is € 100,000, the VAT saving means that you pay only € 83,612. In addition, you benefit from not paying the capital gains tax if your property for 15 years.

Another important advantage for investors who no personal use is the possibility that within a SIPP (Self Invested Personal Pension). Although it is dependent on the SIPP managers, whether they are the property by the property within a SIPP attracts big tax advantages. See our SIPP property for a further explanation of the related tax benefits.

Ewan McGarrie writes about French leaseback property and related items on http://www.propertyinvestment.co.uk/