The leaseback investment scheme
Through freehold ownership of an apartment or cottage that is leased back to a management company for a minimum period of 10 years, investors benefit from:
- VAT refund
- Guaranteed annual returns from their fully managed and maintained property with relatively low up-front costs and no ongoing maintenance or running charges.
††Your regular annual returns†
- Companies selling leaseback properties "guarantee" their investors an annual return. These guarantees are secured by the financial strength of the company offering them, its ability to successfully manage, maintain and rent the property and to continue providing returns during the period of the lease.
- Pierre & Vacances Property Investments has successfully provided its investors with guaranteed income for over 40 years and with 48,800 properties under management and over 7 million tourist clients. It is Europe market's leader in the development and management of tourist residences.
- Pierre & Vacances Center Parcs is listed on the French Stock market.
- Pierre & Vacances provides the guaranteed income annually and irrespective of tourist occupancy protecting investors from fluctuation in tourist demand or in the property market.
- All annual rental income is linked to the French Cost of Construction Index, so investors' returns will continue to increase in line with this index. For the last 10 years, this has averaged around 2% a year.†
- Non-resident owners of French property are liable to French income tax of 25% on their rental income. However, French tax rules allow investors to offset this liability against several factors including mortgage interest payments, notary fees and depreciation of the property.