Making a property investment is, quite understandably, probably not foremost on your mind in the current economic climate. However, some people who have spare funds see this as the ideal time to buy up property at bargain prices. Reasonably priced properties are prevalent overseas and this therefore seems a good time to list a few facts about leaseback property investments and the French property market in general.
The key to the long-term profitability of a property investment has always been the choice of a property offering the perfect mix of yield and longevity through the combination of a good location and a strong management company. Finding a company that is extremely careful to select properties in prime locations with mainstream management companies possessing a proven track record is key.
While the media is currently painting a dire picture of the mortgage market, French lenders have not changed their lending policy for foreigners. Thanks to a common sense approach to lending that has kept French banks solvable for decades, it is still possible to obtain up to 100% financing on leasebacks and even fix your rate for the entire term. With a guaranteed rental income to boot, leaseback investments offer an attractive option in an otherwise uncertain market. It is possible to obtain a fixed rate of 5.65% (plus insurance) at present - compared to over 10% only 15 years ago! Interest rates are likely to keep increasing over the next months and years, so this is a good time to step in.
In spite of, and also because of the current financial crisis it is more necessary now than ever before to prepare for one's pension.
Bricks and mortar are widely recognised as the safest and most profitable investment in the long-term for a 'property pension', providing either retirement capital or a source of much-needed supplementary income. A leaseback property investment allows you to capitalise now for your future and as a tax-efficient investment scheme as opposed to simply hanging on to a buy to rent property.
France has not suffered from the property bubble of this last decade. If the number of transactions has fallen by 30% in this last year, it is due to a lower demand of course, but also because 2007 was a record year on all levels. Due to the heavy influx of foreign investors wishing for their 'own little piece' of France, prices have been over-inflated in many areas of the country and thankfully, they are now coming back down to a more sustainable level. It is impossible to put a percentage figure on growth or decline, properties worth 30% less this year than last, as reported by some press articles in the UK, were simply over-estimated in the frenzy of 2007. If the correct market price were to be taken as a basis for calculating growth, on average, resale property prices will have progressed by 140% in the last 10 years.
Under the leaseback arrangement, the rental yield is calculated on the basis of the price of the property on the day of purchase and the level of indexation of this income is clearly stated in the lease contract. Property owners will therefore be totally immune to any fluctuations in property prices - their income will remain constant and index-linked.
If there were to be a global recession to an extent where the tourist activity in France would diminish dramatically, Residences de Tourisme or Leaseback properties offer an affordable solution for families looking for self-catering accommodation. However, even in the worst-case nightmare scenario, this seems highly unlikely to ever happen: with air travel becoming an environmental and economic issue, France is easily accessible by train, ferry-boat or car from the rest of Europe. The country's rich historical and cultural legacy have ensured that France is the world's most popular tourist destination and there is no doubt that the French 'art de vivre' and taste for the good things in life, coupled with their desire to uphold traditions will continue to encourage visitors for many years to come.
It's really sad to think that other human beings will take our personal belongings if we leave them unprotected. People can endanger the lives of others, this is very important when you are thinking about your family. One of the best ways of preventing people breaking into your home is to install a home security system.
However when you are considering installing a home security alarm, or security cameras in your own home then you will want to make sure you're buying from a reliable and reputable company. This is especially true if you opt for the monthly monitoring contracts. Below we're going to look at some very important and terrific tips that you should consider when looking at protecting houses. They are so important because it's your family home you want to make sure it's a safe place for your whole family. Make your home more secure with .
Important tips to consider
The most important tip that we're going to mention is being aware of exactly what is on offer. There are hundreds of different types of alarm on offer, and there are many different companies that can offer these. You might want to talk to every company to see what they provide, or just specific ones. Either way it is a good idea to get several quotes so that you know you're not paying over the odds. You need to ask them questions so that you can work out how reliable they will be. It is extremely important to spend time talking with the separate companies before you decide which one you decide. Some companies may force you into a contract which can last for a very long time, that's why you should go with a company that you can trust.
More advice includes allowing the companies to come and look at your house. Ideally they shouldn't just talk; they should walk around and identify areas that there are problems, and tell you about anything they would do. They should create a unique security system that is suitable for your needs. They should also tell you how you can resolve any security problems, perhaps drawing on experiences with other customers. Every house is unique, and so everybody needs a unique security system.
A fantastic way to find out whether the company that you have chosen is reliable is to see if they offer the quotes in writing. It is absolutely vital that you get the quotes and prices in writing, otherwise you could quite easily find the price creeping up. Do not trust anyone that doesn't put anything down in writing. Make sure you get all of the costs written down, including installation costs, monthly costs, monitoring contract costs and equipment costs. If there are any additional costs such as warranties then get them to write these down too! Bear all of these things in mind, don't just sign up with the first company that you meet.
Both Shaun Parker & Leroy Calstard are contributors for EditorialToday. The above articles have been edited for relevancy and timeliness. All write-ups, reviews, tips and guides published by EditorialToday.com and its partners or affiliates are for informational purposes only. They should not be used for any legal or any other type of advice. We do not endorse any author, contributor, writer or article posted by our team.
Shaun Parker has sinced written about articles on various topics from Online Marketing, Auto Insurance and Wedding Bells. Shaun Parker is a leading financial expert with many years of experience in the property industry. Find out more about at. Shaun Parker's top article generates over 246000 views. to your Favourites.
Leroy Calstard has sinced written about articles on various topics from Camping, Gardening and Home Renovation Ideas. Leroy Calstard wrote mostly for , an internet site about gardening and home security. You can find his. Leroy Calstard's top article generates over 135000 views. to your Favourites.