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Leaseback property - History and events
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Posted On :
Nov-17-2011
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Article Word Count :
515
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It was in early period of 1980 that the French government presided with Leaseback property so as to enhance the quantity of the holiday accommodation in the market. The plots and properties are usually purchased for investment of funds. Although they provide long term tax benefits and even capital discernment could happen rental financial income must be preponderantly the main reason for leverage.
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It was in early period of 1980 that the French government presided with Leaseback property so as to enhance the quantity of the holiday accommodation in the market. The plots and properties are usually purchased for investment of funds. Although they provide long term tax benefits and even capital discernment could happen rental financial income must be preponderantly the main reason for leverage.
The method it works is that one would lease back the freehold property to a company of plot management. The rental income stands between a lower range of 2.5% and a higher range of 6%.the value of leaseback property depends on the location, property, rates mentioned in the agreement and also will change if you use property by yourself on holidays. There are certain things while go for a leaseback property deal.
Try to always select a reputed company for property management. Remember to check out contract if you wish to use property by yourself and also the personal usage will vary from one company to another. Ultimately you could either exit leaseback property deal or can renew the same. In the leaseback property deal there are also some benefits on tax payment. If you keep the property for 15 years, then you just have no need to pay any capital profits on tax. Leaseback property also qualifies for about VAT rebate of 19.6%.
Even if you do not accept any personal usage, then the funds can be placed in personal pension and also provide more attractive benefits. Lease back were once very common in the country of France, it not only promoted and boosted tourism in France but also added a lot for the construction sector of the country. This type of programs is now getting very much popular in many of the metropolitan areas. Leaseback does not possess a typical pattern of buying and selling process. Here the sellers usually search for good investors who may provide a good percentage of property for them. Here the main highlight is that even after buying a property; the client could lease it to his seller who will in turn rent it to someone else. Thus with this deal, both the client and seller are beneficiaries through a special bond called triple net lease. Such triple lease property will also let the investors have a continuous income for a fixed time period.
This is actually a stress free way for fund investment and of course for management too. You may also have an opportunity to watch the value of property increase if it is kept in a good condition. Usually the time period for leaseback property is almost 10 years. If the arranged time period ends, then there is no need to continue the rent and the owner could do anything with his house. Leaseback is not only business dealing but it will give its own advantages all its beneficiaries in a long term period. But one should be alert before choosing any leaseback program and should analyze well before making any decisions.
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Article Source :
http://www.articleseen.com/Article_Leaseback property - History and events_105878.aspx
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Author Resource :
Esprit Consultants' aim is to provide a personal service and a single source of advice on all aspects of leaseback purchase. We deal with all the major leaseback property developers in France through our comprehensive service.
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Keywords :
Leaseback, French leaseback, Leaseback property,
Category :
Finance
:
Real Estate
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