Sextant Properties Analyse the Differences Between Fractional Ownership and French Leaseback

Top Quote In 2009, a new type of investment appeared on the overseas property market called fractional ownership. Here is the analysis with the pros and cons between fractional ownership and French leaseback. End Quote
    QuoteThe buyer really need to do his homework and decide the type of property he wish to purchase before visiting anything in FranceQuote
  • (1888PressRelease) August 14, 2009 - London, United Kingdom - This article is aimed for people looking to own a property in France but donít know enough information about property options. This will tell them all they need to know about fractional ownership and the French leaseback.

    As an investment, when buying a French leaseback the client will be able to get the VAT back whereas with fractional ownership he is not able to get the VAT back. A French leaseback is a guaranteed source of income paid to the buyer by the property management company regardless of whether someone is occupying his property or not, but with fractional ownership the customer is not guaranteed an income. There is a wide choice of leasebacks in different areas of France including ski resorts, beach locations and in the countryside, as for fractional ownership there is almost nothing on the French property market as most fractional ownership properties are in Spain, Portugal and Florida. With fractional ownership the buyer share ownership of the property and this can make it more difficult to sell but with a French leaseback he has sole ownership as it is a freehold property.

    In terms of buying a property to live in, with a French leaseback the client can stay in his property for a few weeks and possibly up to 6 months, with fractional ownership he is are limited to staying in his property for a quarter of the year. In terms of property type he can get a bigger and more expensive property with fractional ownership as each of the four people are paying a quarter of what they would have paid if they were to buy the property on their own. With a French leaseback unless the investor has a lot of money, he will be only be able to afford an apartment. As for staying in his property, with fractional ownership the calendar Matrix system can be very complicated. With the French leaseback the owner can use his property whenever he wants but there are certain restrictions such as the peak season normally between 15thJuly-15th August and also the residence is sometimes closed in winter.

    In conclusion, fractional ownership is ideal for people with extra money and for use as a holiday destination. A French property leaseback is excellent as an investment and it offers you the possibility of using your property nearly all year round and all the facilities such as the spa, sauna and swimming pool.

    Matthieu Cany is Managing Director of Sextant French Property. They offer a selection of 260 new build developments in France.

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