These are valid points however like everything it's all about the location at the end of the day. A front line beach leaseback like kaufman and braud are building in the south of France or 10 year old leaseback studios right next to 5 univesities will always produce interest from potential buyers. The leaseback system is 20 years old in France and has a proven track record. Just like any property there are the good and the bad ones. it all boils down to looking for key factors at the end of the day.

Hi

I have just joined this forum site.
I am a licensed French agent.
Some of the comments made in this post are correct.
BUT, there are various types of leaseback scheme within the French system.
They are all designed for French taxpayers.
However, the rules for LMNP/LMP products have just changed.
This scheme - LMNP/LMP - is the one where you get the TVA refunded (cashback). Previously, if the unit was sold off before 9 years, a proportion of the cashback had to be repaid.
THIS IS NO LONGER THE CASE.
You only have to keep the unit for 1 year, before you can resell it without penalty.
We deal in both new sales (to foreign clients) and resales (to french clients)
For LMNP/LMP, the standard guaranteed rental return (4-5%) appeals to French clients as this is higher than they would get in a French bank. However, most don't want to wait potentially 18-24 months to get their return after signing the intial paperwork to purchase.
Currently it is taking between 72-96 hours for us to resell LMNP/LMP products

Has anybody heard of Leaseback agents being sued for

miss selling
miss representation

and actualy one their cases

I looked at leaseback before I purchased my apartment in Cannes. Not really a greta deal in terms of resale I think!

Hi Guys, I think it is like everything else, some leasebacks are fabulous and some are really not so fabulous. You really need to look at the area the leaseback is in as some are in the middle of nowhere and difficult to sell, as a classic sale appartment in the middle of nowhere is hard to sell. A leaseback in Paris never stays on the market long. Location is everything.

Deirdre

Thanks for clearing these issues up, a lot of sites and articles are not up to date on this and even some promoters do not have the correct info.

Dee
The leading French property advisors in Ireland - French Property Ireland