“Kathleen, a few weeks back you wrote about buying and renting property in or around Paris, France. Is there a French government-managed program? How can I get more specific details, requirements, and recent listings?”
— David H., United States
To clarify, the French leaseback isn’t government-managed, government-backed, or government-guaranteed, but it is the most efficient and can be the most cost-effective way to buy in France, including in and around Paris.
Indeed, a French leaseback can make more sense right now than ever. Buy an apartment in France through this program, and you’re not only investing in your eventual retirement pied-a-terre, but you’re also guaranteeing yourself a reliable annual yield. The amount of the yield depends on the leaseback you buy. Typical yields today are in the range of 3% to 4%. And, right now, a yield of even 3% to 4%, if you can count on it, sounds pretty good.
Furthermore, you can finance your leaseback buy. Plus, when you buy, the value-added tax (VAT) is rebated, meaning you save 19.6% off the list price. This is a long-term play, as you must commit to lease your property back to the rental management group for nine years. However, in the current climate, locking in nine years of guaranteed yields doesn’t sound like such a bad idea, does it? And, again, at the end of the nine years, you walk away with your own retirement home in France.