Leaseback (noun): A property which is bought and then the lease of the property is given to a management company, which markets the property and pays a guaranteed rental.

The leaseback concept was introduced in France during the late 1960s, when the number of tourists visiting the country started to rise dramatically. At this time, there was not enough quality holiday accommodation in the most popular areas, and this led the French government to encourage investment in the construction of tourist residences. As an incentive to investors, the government allowed the VAT (19.6% for new build properties) on the purchase price of properties built for tourism or ‘leaseback’ purposes, to be recovered, representing a significant saving on the purchase price. This incentive, combined with massive investments in roads, trains and supporting infrastructures, and the obvious climatic, culinary and cultural benefits, led France to become the world’s most visited country with over 80 million visitors in 2007.

Now is the time!

Buying a leaseback property is a hassle-free and low-risk way to purchase a ski, beach or city apartment in France as an investment for the family or for income in retirement.

When investing in a property of this type, the buyer purchases the freehold of the property, and leases it back for a minimum period of nine years to a company specialising in the management, maintenance and rental of leaseback properties.

The investor receives a guaranteed annual return from the property, and, depending on the terms of the acquisition, may be able to use the property for an agreed number of weeks per year. Guaranteed returns are index-linked to the Dwellings Rent Index of France, and are delivered irrespective of tourist occupancy, protecting investors from fluctuations in tourist demand or downturns in the property market.