Most people underestimate how much time they will be able to spend in their holiday home. They buy a home abroad with the conviction they will visit five times a year, during every school holiday break. But life, somehow, gets in the way. Or they underestimate how much the running costs are going to be. Then part-way through ownership, they want to rent out for a bit of the time, to cover costs and make life more comfortable.
But a holiday home overseas need not be a drain on finances, or your time. In fact it can earn you money, in the same way an investment does, and you don’t have to do much once it is set up.
Want to own an earning-holiday-home: Here’s how?
As with any property purchase, if you buy a decent property in a great location, it can potentially earn rental income as well as being easy to ‘exit’ from and sell on. Earning-while-you-own, means having a home in a desirable, location and of a type that others will gladly pay for.
Top that with a proven management company, who can rent out and manage your property to other holiday makers, without you having to organise it or get involved on a day-to-day basis and you have a winning formula. What’s more, you can have regular monitoring of the management company, to ensure they are paying you, the landlord, on time and to ensure the operation runs smoothly. Then you choose how much you are going to use it, 1 or 2 weeks a year, or maybe a weekend here and there, and the rest of weeks in the year it gets rented out and earns you income.
So you get a holiday home that you don’t feel all the pressure to use at every waking opportunity, and it earns you money.
Too good to be true? It is the Managed Property model in France.
A tax-efficient, proven and established model in France. If you are viewing property investment as a medium to long term investment, then this could be for you. If you are interested in speculating and flipping, then this may not be the right vehicle for you.
France has always been a popular country for investment property in ski resorts or country and coastal holiday homes. Recently it has been edging back up the popularity rankings, vying with Spain.
Many of you investors have a day job too, so you don’t have lots of time to spend managing and running a home abroad. So here’s an interesting investment-lifestyle option to consider.
4 more reasons to buy a Managed Property in France
This model uses the local tax advantages. You don’t pay VAT on the off-plan purchase because you enter into a long term investment and commit to providing the welcome facilities (reception area) apartment cleaning and linen changing services. At prevailing VAT rates, that equates to a 20% discount.
Because the Investment company has a track record of carrying out this type of build, they are known on the market and can get access to properties, in locations which would not normally allow new build. For example one of the latest developments is located on Ile de Re, an established holiday home spot with a traditional resale market. Because of the number of units the investment company build in one go, it means the development is profitable for the land vendor and the local authorities look upon them more favourably because they will attract spending tourists to the area.
And the investment company has buying clout, so they buy at a discount to the market rate, which is translated into the buying price for you, as a landlord.
What’s more you will get a holiday home in a good location. This investment company only takes on about 10% of the projects they investigate, research and conduct due diligence on. So your property will be attractive to other holiday makers and will hold its value for when you want to exit.
France Managed Property Model
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Property Venture® is an award-winning, European Investment property company who helps build portfolios and the purchase of holiday homes in Europe, with common-sense advice.
The focus is mainly greater Europe: Managed Property in France, German property investment, buy-to-let and homes in Poland, UK investment property, Spanish city and Costa property, Cypriot homes
On the Advisory Board and a Member of the Association of International Property Professionals (AIPP) the business has been vetted, approved and voluntarily commits to Industry Regulation and the Professional Code of Conduct. We are known for our quality customer service and non-pressurised approach to sales. Take a look at what our clients sayTags: holiday home, investment property, Leaseback, Managed property, Overseas Buying process, Property Abroad