Overall, an exceptional investment in an excellent resort.

In the press:

Buying a home overseas through leaseback can make it easy to find a dream home that's tax efficient and generates guaranteed rental income, says Savills' Susan Wright.  

Life doesn't get much better than walking up to a vista of snow-covered Alps, stepping out of the door, strapping on your skies and taking off for a day on the slopes. It's why thousands of people return to the Alps every year and why they consider buying a property to rent out and use themselves. But if the thought of managing a rental property (with bookings, voids, cancellations and domestic services to deal with) puts you off then perhaps you should consider leaseback.

Through leaseback the buyer owns the freehold but leases the property back to the developer in return for a guaranteed yearly rental income. Financial analyst Michael Halliday opted for leaseback when he bought a ski in/ski out apartment in Les Arcs in the French Alps four years ago. He and his wife spend one or two weeks there each year, while lucky friends and family make the most of it during a further weeks. "We've been absolutely thrilled with it," says Halliday. "It's gone up in value hugely but the most important thing is it’s beautifully looked after and totally hassle-free."

It costs Michael nothing to furnish or keep his apartment because the leaseback company meets those costs and the rental income he receives covers most of the mortgage. "The term leaseback many be misleading or off-putting for some, but it's really just a fixed rental system," he says. "You could do just as well financially renting a property out yourself but it would be a lot more hassle."  

The Lease Agreement:

The freehold apartments will be leased for 9 years by one of the largest French tour operators. This is a leaseback investment with occupancy offering a net rental income

PURE INVESTMENT OPTION

Financial lease with a guaranteed annual yield between 3.20% to 4.29% excl.VAT plus one week of personal use during the summer season.

WITH OCCUPANCY OPTION 1

Holiday lease with a guaranteed annual yield between 3.08% to 4.13% excl.VAT plus two weeks personal use in winter (in January or April) and one week in the summer season

WITH OCCUPANCY OPTION 2

Pleasure lease with a guaranteed annual yield between 2.48% to 3.32% excl.VAT plus three weeks use in winter, one of which can be used at any time, the two others in January or April and one week in the summer season.

The Management Company:

The residence to fall into the leaseback scheme there is a lease agreement that will bind the owner with a selected management company. The one selected for this residence is one of the major management companies in the tourist residence management in ski and seaside areas. It has been chosen for being renowned for its high management service delivered to its clients.

Created in 1998, the company became a major player in the sector of tourist accommodation over a mere ten year period with more than 270 residences in France and on the Mediterranean coast – in Corsica, Spain, Sardinia, Italy and Croatia.

Most of the 100 000 beds managed by Odalys are owned by private investors, institutional investors or groups that have entrusted them with the management of their property, through a commercial lease or a mandate. Backed by Groupe Financière Duval, which holds 75% of the group’s shares, Odalys has grown rapidly. At the same time, Odalys has expanded in new areas of tourist accommodation: Vitalys residential leisure parks, residences located in historical buildings and luxury chalets and villas.

The VAT Refund:

By signing a management agreement for 10 years, the VAT of 19.6% that is included in the purchase price of all new properties in France is fully refundable to the owner by the government following completion of the development. VAT paid within the purchase price of the parking and furniture package will also be refunded.

In this development, the developer will advance the VAT payment for you!

The Stage Payment - PHASE I

Reservation Contract – 5% Total 5%

Completion of foundations – 30% - Total 35%

Completion of paving on the first level – 25% -Total 60%

Completion of the Roof – 10% - Total 70%

Completion of Doors and Windows – 13,612% Total 83,612%

Reservation Contract – 5% Total 5%

Reservation Process

In order to take a property off the market, a 5% deposit will be requested, based on the property price including VAT. This deposit is fully refundable if you cannot get a mortgage. The funds will be transferred to the notary office in charge of the development and will only become available to the developer upon signing of the final contracts.

Full details of the buying process and the relevant parties involved will be sent to you upon request.