Millsime - Marseillan Quay

Anyone who has visited Marseillan will know how beautiful the quay and marina are

There is now an opportunity to own an apartment right on the water font with stunning views across the Etaing

In our opinion Millsime will be the last properties to be built with the advantage of a quayside position and access to the village centre within minutes

We have studio, one to 4 bedroom properties available from €120,000 please contact us with you requirements and we will get back to you as soon as possible

 

CONTACT US NOW

MAKING YOUR PROPERTY IN FRANCE 20% CHEAPER

 

THE VAT REFUND STRUCTURE EXPLAINED

 

Summer 2019

 

VAT apply on new built properties in France but you have the possibility to get it refunded to you from the tax administration if you are planning to rent your property furnished on a short term basis with services.

This letting activity is considered as commercial activity allowing you therefore to claim the VAT.

The conditions are quite easy:

-you need to rent your property furnished

-on a short term basis

-at least 3 para-hotel services have to be offered to the tenants: reception (handover of the keys),bed and linen, cleaning, breakfast (it can be breakfast delivery)…

 

Many rental agencies propose those lease options to owner especially in the French Alps. You just need to sign a flexible commercial lease agreement with them.

The rental agency will manage, maintain and rent your property on your behalf. You will be of course free to use your property whenever you want (you’ll just need to tell  the agency before the beginning of the ski season when you are planning to occupy your property).

The rental agency takes care of everything and propose those services to the tenants.

This VAT refund structure is very advantageous as it make you save 19.6% on the purchase price.

If you are buying a new built property already completed, you pay the price including VAT and then get the VAT back 3 to 6 months after the signature

If you buy off plan, you pay the property by stage payments. You pay the stage payment including VAT and then get refunded the VAT accordingly on each stage payments.

 

The VAT is being rebate on the rental activity over 20 years so it means that you have to rent your property over that period.

If you decide to stop your rental activity after 10years, it is absolutely possible but you may have 10/20th of the VAT you got back to refund to the Tax administration.

It is absolutely possible to resell your property before the end of the 20 years period:

-If you resell the property and the new purchaser carry on with the rental activity there won’t be any VAT to repay as the VAT will keep on being rebated on the new purchaser.

-If you resell the property for example in year 10 and the new purchaser does not want to carry on with the lease activity. You may have to repay 50% of the VAT that you initially got back.

But it is not a problem as the price including VAT when you acquired the property was the actual value of the asset so when you resell the property the valuation of your property is price of acquisition including VAT+ capital appreciation over 10 years so if you have acquired it at the price excl VAT, the VAT reclaim structure would have still help you saved 10% at the beginning

Current properties where the developer is offering this type of purchase include

Marseillan

French Alps properties

Gruissan ( Capitoul)

West Coast and Dordogne

All the above properties could benefit from a 20% reduction in the purchase price without you having to resort to a leaseback scheme which means greater flexibility for the owner.

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A  fabulous 1 bedroom home in Marseillan with sea views  is on the market for €233,000 with 20% VAT discount this would be only €186,000

Chatel

Still Hot

Summer  2019

 

If you are thinking of investing in a Ski property take a look at the following comments in the recent Sunday Times

 

Châtel, France

 

The hottest French resort for British buyers right now is Châtel, on the Swiss border, 90 minutes’ drive east of Geneva. Part of the vast Portes du Soleil ski area, it has long been the poor relation of its neighbours Avoriaz and Morzine — but a flurry of development has buffed up its image no end.

 

The key additions are the Portes du Soleil and Gabelou chairlifts, which opened in January and connect its two ski sectors — saving a bus journey.

 

The Forme d’O, a new swimming pool and spa, opened last year, burnishing the resort’s family-friendly reputation.

 

 

Find you new home in Chatel here

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Perle de Savoie Chatel Great Value from €189,000

Move before it’s too late": French property markets benefit from Brexit

The definitive date on which the United Kingdom will leave the European Union is set for 29 March 2019. As such, many British people are determined to buy property in France before that date.

 

A property hunter in Dordogne told The Guardian: "Every Brit who’s ever dreamed of living on the continent but done nothing about it has woken up and thought: “If I don’t do it now, it’s never going to happen. Or at least, it’ll be a hell of a lot harder.”"

According to the 2017 BNP Paribas International Buyers study, 30% of British people looking for property in France felt a push to accelerate their property purchase because of Brexit.

 

Beyond practical considerations about having a European passport, many Brits are investing in France to take advantage of low interest rates and affordable French property prices. They are hurrying out of fear that the pound will depreciate once Brexit is complete and their savings will melt away. The solution, as they see it, is to invest in bricks and mortar while also enjoying the French lifestyle. Beyond the cliché of the Brit who wants to retire to the sunny south of France, a number of younger British natives looking to buy are intending to put down roots in France, looking for remote working solutions with their employers in the UK.

What Would I Buy as a Property Agent?

Kim Eeles -

Summer 2018

 

Many people over the years have asked me

Where would you invest your money in overseas property?

It is an interesting question and in many respects the property I own helps me

answer that question

 

Firstly, it has to be a city, town, region and country which I understand and love.

I suppose this is the easy bit but as many have found to their cost the hard work

begins after this selection.

A checklist is probably a good idea to narrow your options. I tend to think the

following are quite important

 

  • Do I need an income from my purchase to cover all my annual costs?

  • Do I enjoy the ‘buzz’ of a good community or is ‘splendid isolation’ my thing?

  • Can I afford the annual fees?

  • Are all access routes likely to remain open in the years to come (i.e. don’t rely on

      Ryan Air to be your carrier of choice forever).

  • Do I want to spend upwards of 5 hours in the air reaching my homes nearest airport?

 

Having looked at this shortened checklist again I suppose my purchase of a small apartment on the quayside in the Languedoc was quite a reasonable investment on the basis I bought with my heart within 2 hours on a sunny harbour side on a beautiful spring day in southern France.

Interestingly it has made me realise the importance of what other people are looking for in a property to rent or buy.

 

The increase of the wealthy mature demographic has thrust my small apartment into the forefront of properties people want to rent.  While my wife and I enjoy several trips a year to the property we sleep easily knowing we are making in excess of 6% net per annum on rental income

Of course we have been fortunate in finding a great property manager but the key is location. Within 100 yards of 30 restaurants and a stunning harbour. This seems to be what people are looking for. Annual fees are low as there is no swimming pool, lifts to breakdown, spas and hot tubs to maintain.

 

Over the years I have been asked by distressed owners to sell properties that have similar things in common. These are

 

  • They are too big to maintain. How many times have you seen couples drooling over large homes on property TV channels?

  • Annual fees are often larger than the average mortgage. Someone has to maintain that large pool and spa.

  • Owners did not realise their property would be impossible to reach after the summer had ended or if they could it was far to expensive to travel.

  • Rental income was poor . Ask yourself is there enough nearby to attract customers. And is there too much competition from other owners?

 

Of course you may be lucky enough to afford whatever you want but as a property agent nothing is as sad as having to sell a property for much less than it was purchased for.

 

So think hard what you are seeking and keep some of the basic questions in mind while searching. It will undoubtedly be worth it should you ever decide to sell your dream home

 

Oh yes and where did I buy  - Check out Marseillan in the Languedoc.

 

 

 

French Leasebacks

Some of your questions answered

Spring / Summer 2018

French leaseback properties are regularly seen advertised but still questions arise about exactly what they are.

 

Please click here for an introduction . It really does help in understanding you are buying a classic freehold property and not a 'timeshare' These properties are 100% owned by the purchaser with a lease attached. but please feel free to contact us at any time if you have further questions

 

 

Affordable Property prices for Leaseback as they reach the end of their lease

July 2018

 

For many potential owners in France the word Leaeback conjures up worries over how reliable the lease is and whether the management company is reliable enough to keep paying the income over a sustained period. Although over 90 % of purchases never experience any worries over their purchase there is another alternative.

 

Many leasebacks are now reaching the end of their 20 period in which their owners have received a sustainable income. Some now wish to sell their properties and these generally come without a lease involved. So the property is the new owners their's to do what they wish with it. This may be as a second home or a buy to let ( letting it themselves) or both. The property is the owners to do with what he or she wishes.

 

We have found that many of these properties come at a lower price than many in the same area. For example in Meribel it is possible to buy a studio apartment for under €100,000 which is unheard of in an area like this. It also means you should be able to make a very agreeable letting income on apartments that during their leaseback period were receiving over €900 per week in the high season.

 

In Valfrejus and Font Romeu we have sold fully furnished properties under €40,000!

 

So this raises the question are there any diadvantages to owning an ex leaseback  apartment? In our opinion the advantages probably outweigh the disadvantages. However one should look out for the following

 

1. Community Charges. Now that the property is free of a lease the new owner will be responsible for paying a service charge in full? Very often because most properties will have reneewed their lease you will be paying a maintenance charge to the management company that has been operating it for the last several years. Our experience has shown that charges for most properties range between 12 to 20 euros per square meter depending on the facilities involved. So for an avaerage sized leaseback we would be lookinfg at €1500 per annum. This though can be negated by letting the property yourself and most probably your home will be decorated to a higher standard

 

2. Letting your property. Now that the property is 100% your you will need to make arrangements to let it yourself if this is the course you wish to take. This may take the form of finding a local agent who will charge in the region of 25% to run your property. Or you could look for someone local to clean and prepare your property while you use your own methods of advertising like 'Holiday Letting' or Air bnb'. Whatever course you take you should be able to make in excess of 4% per annum on your property.

 

3. If the property is being sold with the lease set to run out in say 18 months time. You will be responsible for paying back the VAT on this period. ( Leasebacks are bought VAT free and are only entirely free of VAT excemption when the 20 years are completed)  

 

We believe if you are considering buying an ex Leaseback Property the advantages far outweigh the disadvantages. Experience has shown us that these properties sell fast as the prices suit many pockets and tastes. This includes investors and those seeking a second home for the price of a luxury saloon car.

 

Remember these homes are fully freehold and yours forever. Keep checking our leaseback pages for properties that are coming onto the market. 

 

 

New Homes in the Dordogne 

We  are pleased to announce that Affordable Homes in the Sun have been given the go ahead to market detached freehold homes in the Perigeux district of the Dordogne. We believe these properties will suit time sensitive couples and families as they come fully furnished and will always be superbly presented on  your arrival

They are beautiful externally and internally with large gardens and access to wonderful facilities including a golf course. If you would like to visit contact us now for a no obligation tour of the Estate and homes

Contact

kim@affordablehomesinthesun.com

t.   00 44 1202 255418

m  00 44 7990896642

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