English
FrançaisThis is intended for those considering a French leaseback investment.
I have read a message from Seamus, the administrator of the forum saying that this forum is maybe not to his advantage because it is only used when people have a problem with their own leaseback. While this is a function of the forum, I hope it is also a function of the forum to inform those considering the French leaseback option.
I have found this forum very helpful since I first started to consider investing in French Leaseback. It has enabled me to contact other investors in my development. And I am very happy with how things have gone in my own property. Everything is as I was told it would be and I am constantly updated by the management company.
For those considering such an investment, French leaseback has always been about the longterm investment. Yes, there are Mickey Mouse operators out there or if you are unlucky an established opertor may encounter problems. But, as i already said in another post, it is in the French govermnent's interest that this scheme is hassle free because otherwise people will not invest.
For anyone thinking of investing, just consider what return you want and how quickly.
And, I should state that I did not purchase through the owner of this website. My only contact has been from the free advice that he offered on the public posts of the forum. Thanks Seamus.
Run! Never, Never invest in Leaseback!
It doesn't work in the majority of cases and as Waggtail says, everything is weighed in favour of Banks, and Dodgy management companies. There is no regulation and no recourse for investors stung time and time again when Leaseback companies operate a complex, cream off the profits and then do a runner leaving a trail of debts behind which have to be paid by the owners.
Legal advice costs a fortune, land tax is approx €600+ p/a, Building management companies do a good job but it's another expense the owner has to meet, even a tax return costs €300+. You're looking at approx €2k per year costs on top of mortgage payments.
LEASEBACK is not a good investment if you have a mortgage to pay, only do it if you can afford to lose your purchase price if things go wrong which they probably will!
When i bought,according to my agent,i had only the Mortgage and the Tax Fonciere to pay!
Last year on my lease back it was 380 for accountant,715 tax foncier,400 co-op,220 bank account,645 v.a.t on rent plus the mortgage and hassle that wouldn't believe!
So no,it is not a good investment and anybody who bought since 2006,when these problems were known,wants a good kick up the backside!
Winnie
You mention about management companies doing a runner and leaving a trail of debts behind. Have you personally had experience of this? Our management company (Suites Etudes) are not paying their share of the co-op charges and CityA are trying to pass them onto owners (legally they are allowed to do this). We may have to take them to court to recover these costs, (as well as unpaid rent, etc) but of course if they do a runner the owners will be lumbered with these costs!!!
Mudds
Yes, our first management company failed and left owing rent to owners, syndic contribution outstanding and utility bills unpaid. Luckily they left before we had to take them to court to throw them out but it took 6 months to get another company in - who are now late with rent payments! Never-ending hassle and stress! ... and jaward, we're kicking our backsides daily! the words 'why did we get into this' are on a circuit in my brain.
Well guyz dont worry about your investments Interstate Capital Factoring Company provides the lowest rates and best service as a factoring business.
i too have found leaseback ok until my rent stopped coming in now when i try to talk too the management company about the rent they keep fobbing me off all i want is my rent
Irishman 321 experiences are very common and were mine also.I did the due diligence, visited the area looked at several leaseback properties and choose the one that suited me.Everything was fine for five years then the management company sold out to another -result no rent for two years, lawyers , baliffs and court cases This resulted in another dubious company at the helm who needed ejecting.This company threatened legal recourse against the owners! So on top of no rent there were yet more costs.
Presently another company are at the helm and seem ok -so far.BUT we have had to take a huge hit on our income about a 50% loss.
For those of you who leaseback is working for I am pleased but sadly I am aware of many who leaseback has been a disaster.
The whole enterprise is weighted in massive favour of the banks and management companies who are not run efficently or in many cases honestly.The French Government who are supposed to ensure strict standards of business in the industry seem unwilling or incapable of getting a grip of what is IMHO a national shambles bordering on scam.
The biggest problems with leaseback are there is no recognised exit strategy.There are few main stream estate agents who understand it but are happy to give mis information and unless I have missed something no serious second hand market.Secondly there is no transparency in the contracts, too many hidden penalties it almost seems the management companies make it up as they go along.
My advice and I am shooting myself in the foot here is invest in something you have more control over.I wish I had.