France prepares for Trust investment boom

Following the introduction of its first trust law on the 2 March, huge amounts of foreign investment are expected to flow into the French property market.

What are the benefits?
•     The opportunity for a first-time investment in French leasebacks for foreign pension trustees.

•    High net worth individuals will be encouraged to move offshore funds into the property market without major tax penalties.

•    “It could be one of the biggest developments in overseas property for the next decade,” according to chartered tax adviser David Anderson of law and tax firm Sykes Anderson.

•    More high net worth individuals taking an advantage of the unique property types such as vineyards and ski chalets.

•    A potential immediate benefit to the €10 million + property market.

SIPP leasebacks
Leaseback developers are also excited because of the potential for Self-Invested Personal Pension (SIPP) investment from the UK. A massive interest from current clients has been reported.
SIPPs are not allowed to invest in residential property but developers are confident certain leasebacks would satisfy tax office rules.

The change in law will encourage more SIPP providers to invest in foreign property in order to avoid losing business.

France has signed tax information exchange agreements with a number of tax havens including: Jersey, Guernsey, the Isle of Man, the British Virgin Islands and the Cayman Islands.
The 3 % gross annual tax penalty and the absence of a trust law were two major obstacles for foreign investors so it an amazing turnaround has come about that could even lead to Trusts being able to buy residential property that no-one’s been able to invest in for the last 50 years.

Mediterranean-style Leaseback apartments in Argeles-sur-Mer

Situated in the heart of the Languedoc-Roussillon region, deep in the South of France, a new oasis of peace has been created to fulfil your ultimate holiday pleasures. This oasis is situated on the outskirts of the pretty village of Les Demeures de la Massane. It is a landscaped, private park which is close enough to the village that you feel attached to civilisation but far enough away that you can ignore it [civilisation] for a while, making it a very attractive touristic and financial prospect for everyone.

The fully-furnished interiors of these Mediterranean-style apartments offer a haven for those who enjoy the sun and sea provided by the south coast of France. The blend of colours provided by the rural surroundings’ and the resort itself, cannot fail to set a mood of total relaxation.

As with many such resorts, Les Demeures de la Massane is an exclusive community that is centred around a communal reception area that houses a 5-star luxury spa facility that comprises a large swimming pool, Jacuzzi, sauna. The resort is not just targeting adults; children have their own games’ area within the spa complex as well as a paddling pool to amuse themselves with. All this and should you still wish to explore further, there are the white, sandy beaches of the Mediterranean no more than 2km away and the Pyrenees mountains as well as Spain, only a short distance by car.

On the financial side of things, this resort is a leaseback property, meaning that you can have the opportunity to enjoy both touristic and financial reward! The investment scheme is as follows:

- The property will be managed by a well-known management specialist.

- Rents will be guaranteed via a commercial lease.

- You, as the buyer, will get a VAT percentage in return.

Additionally, buyers will be granted a VIP member card which will give access to special holiday offers!

The resort is very accessible as the nearest city, Perpignan, is only 20 minutes away and has a train station with trains going to Paris and all over France as well as an international airport with cheap flights to the UK.

If you want to receive the full brochure, send us an email at info@sextant-new-build.com

New in Languedoc: Beautiful house with leaseback opportunity

Looking to invest in an expanding housing market? Look no further than the new estate at Saint Benoit in the Languedoc-Roussillon region of southern France. These new houses give the perfect opportunity to enjoy a holiday and rake in profits at the same time!

A vineyard and Spa estate, Saint Benoit offers both the ancient and the contemporary in its modern styled furnished apartments, with private gardens, set within the estate’s 12th century renovated gardens. Set in the heart of all this modernity is the estate’s reception centre which incorporates:

– Restaurant/bar

– Lounges and libraries.

– Spa facilities with indoor and outdoor swimming pools, saunas and Jacuzzis.

– Kids’ area.

These delightful apartments are at €245,180 with a required deposit of 2% on agreement. At Sextant French Properties, we can offer you a top quality mortgage service whether it be an interest-only mortgage, a traditional repayment mortgage or even a hybrid mortgage should you so require.

The property will be under the watchful eye of a management specialist with rents guaranteed on a 9-year renewable commercial lease and paid on a quarterly basis. The buyer receives 19.6% VAT cash back and the property can be offered on 5 different options from a pure investment (yields can be up to 4.5% per annum) or a 6-month personal use scheme that sees nil return on the investment but you can nonetheless enjoy the property all by yourself!

There are only a few units left in the estate so hurry now and make good on a great opportunity!

Unique new villas available in the French Riviera

Le Domaine de la Boursiere is a brand new housing development in the Cote d’Azur. It comprises a complex of sophisticated 3-4 bedroom villas with large gardens in lots of more than 1500 sqm. Each villa has the space and the option of installing its own private swimming pool in order to fully enjoy the Cote d’Azur sunshine.

The architect designed these individual homes to provide a sense of intimacy with nature through light, space, and sunshine. Furnished with all the modern conveniences, these homes tucked away in well-preserved nature have been designed to combine authenticity and quality of life.

All of the villas offer the following exterior features:

• Home security system with controlled access

• Fenced property with private gates

• Optional swimming pool and facilities

All of the villas offer the following interior features:

• Flue lining

• Textured paint

• Inside staircase with concrete with wood nosing

• 40 x 40cm tiles laid diagonally

The complex is in Bagnols-en-Forêt, a commune in the Var department in the Provence-Alpes-Côte d’Azur region in South Eastern France. Bagnols-en-Foret is a peaceful village nestled in the foothills of the Esterel Mountains; surrounded by beautiful countryside and described as a haven of greenery scattered with majestic trees. The village has a great view out over the valleys and hills to the south and west, and on the top of the hill there is an open park where you can have a fantastic, panoramic view out across the countryside. Situated between the upper Var department and the coast, Le Domaine de la Boursiere is an ideal spot for those wanting to combine the pleasures of the seaside and experience the real Provencal village with its windy little streets and ancient chapels dotted around. While the Med invites you for a swim just 20 minutes away, the nearby city of Cannes tempts you with its shops, casinos and restaurants.

Local activities include: Hiking, judo, football clubs, Tai chi, tennis, yoga. Market day is every Wednesday and Saturday morning in the town hall square.

How to get there:

• By car- Just off the D4 between Frejus and Fayence,

20 km from St.Raphael, 25 km from Draguinan

• By plane- Nice International Airport (1 hr), or Cannes (40 mins)

–both serve all major European cities

• By train- Paris, Lyon and Marseille are within easy reach

by TGV from Cannes train station

French Leaseback properties: changes for 2010

Eligibility leases with rents that incorporate a minority variable rate.

Investments in tourist residences are based on a “triangular” theory:
DEVELOPER (D) – INVESTOR (I) – OPERATOR (O)

Put simply, “I” acquires a property from “D” and then signs a commercial lease with “O” who then pays the rent to “I”. Rent is at this point guaranteed, that is to say “fixed”. ie. A property worth €200,000 at a flat rate of 4% rent per annum will therefore be paying rent of €8,000 per annum.

In order to avoid pitfalls, some property managers felt it would be more realistic to use “sliding scales” (variable rates). This usage of variable rates would mean that, for example, managers could guarantee a flat rate of 2.5% over a 9-year period and then at the end of each year, they could pay back a percentage of the residence’s or manager’s turnover to the investors. In this case, there are elements of both “fixed” and “variable” rates.

BEFORE: This “mixed” rent incorporating the two types posed taxation problems in leasebacks located in the ZRR, Zone de Revitalisation Rurale or “countryside under re-development”. The tax would depend on each tax office’s interpretation of the make-up of fixed incomes, so the investor would lose his tax advantage.

NOW: It is no longer an issue as the line is “if the income is erring on the side of fixed rates, then there is no need for independent interpretation.” It means that the tax deduction will not be affected any more within the ZRR.

Changes to commercial lease systems for 2010.
Up until the end of 2009, in the event that the management company could not fulfil its contractual obligations, property investors were required by law to sign a commercial lease with a new management company otherwise they would lose their tax advantages such as the VAT rebate on New Build properties . Now, with the law changes made for 2010, potential investors can avoid tying themselves to a new precarious lease with another management company. Investors can avoid the commercial lease altogether and grant a management mandate to a professional manager. For example, an experienced manager specialising in hotel management or in holiday centres, or if the owners decide to run the whole operation themselves without the involvement of middle-men (although it might be very complicated to do so due to the number of owners in those types of residences who usually have 100 apartments).

There are 2 conditions to this new law:
1)    The so-called “self-management” of the residency must involve at least 50% of it.
2)    The “self-management” of the residence is possible after 1 year only if the owners could not agree on another management company. In practice, this period of 12 months isn’t ideal for residences in difficulties, “It would be necessary to allow investors, who are already without rent, to find a solution to their money woes more quickly,” according to Yannick Aure, the Head of Exhore, (Exploitation d’Hotels et de Résidences).

Yannick, himself a specialist in hotel management, has proposed a management mandate to investors who agree a re-sale price of the lease for a token sum  will receive  the commercial funds of their property in line with a judicial proxy.

At Sextant Properties, we hand-pick the French leaseback developments, making sure that the management companies are sound and will be able to fulfil the rental contracts they sign with the buyers.

Free Alpine Property Leaseback Seminar on 19th January 2010

Registration is now open for Sextant Property’s latest free property seminar on 19th January 2010

This free property leaseback seminar is designed to inform you as to how to choose potential properties and how to get good returns on capital invested. These investments can provide you with a palpable source of income as a holiday home. Additionally, you will be shown the advantages of a buying off-plan and how to avoid the currency fluctuations.

The seminar’s case-study will be luxury apartments in the ski resort of Avoriaz, the gem in the crown of the Portes-du-Soleil ski region in the French Alps. At an altitude of 1800m and over 650km of ski slopes, these luxurious apartments are much sought after. The resort is situated in the mountains overlooking the Morzine valley and is approximately 1 hour by car from Geneva airport in Switzerland.

As well as the obvious delights for both skiers and snowboarders alike, the resort houses a 2500sqm indoor water-park – dubbed “Aquariaz” – a perfect place for both old and young!

The resort is a car-free zone which ultimately makes it a safer environment for young families.

The guest speaker will be Jim Beattie who will speak about the apartments themselves and why property investors should be looking to purchase in this highly desirable alpine area of France.

This seminar is free but places are limited so book now to avoid disappointment.

Date: Thursday 19th January 2010

Price: FREE

Photo Contest with the best image of France

Firstly, all the team members at Sextant Properties wish you a happy New Year!

We start 2010 with a Photo Contest

Bear in mind that it might not be the best picture who will get most of the votes.

If you have something that really catch the eyes of the voters you are more likely to win.

The rules are very simple:
– You send your best photo of France

– The public vote for the best picture

- The winner will get a Magnum of Champagne!

Click here to join the contest

Free Golf property seminar on 7th January 2010

Registration is now open for Sextant Property’s latest free property seminar on 7th January 2010

Come to this free property seminar and learn how to choose investment properties with good returns for a reliable income now and in retirement, the advantages of buying off-plan and how to avoid the perils posed by currency fluctuations.

This seminar’s featured development will be the stunning off-plan development of Pont Royal Golf. Located in the highly sought-after Provence region (which receives over 300 days of sunshine every year), just 30 minutes from the Mediterranean coast and close to the beautiful town of Aix-en-Provence, this development offers residents luxurious eco-friendly apartments and villas set in a beautiful 450 acre park with an 18 hole golf course, excellent sporting facilities, fabulous restaurants and brilliant entertainment throughout the year.

The guest speaker will be Bernard Comptat who will speak about life in his native Provence and why property investors should be looking to purchase in this highly desirable area of France.

This seminar is free but places are limited so book now to avoid disappointment.

Date: Thursday 7th January 2010
Price: FREE

More about Pont Royal Golf

Christmas in France

France can be a truly magical place to spend Christmas. It is an incredibly diverse country – each region has developed its own distinct cultural character and heritage, making for a rich and varied collection of Christmas traditions. Most provinces celebrate Christmas on the 25th of December, as we do in the UK; eastern and northern France, however, also celebrate la fête de Saint Nicolas on the 6th of December. This is a Germanic tradition which is shared by Germany and the Netherlands in which children are given sweets and small presents by St. Nicholas and his helper. France shares many of its Christmas traditions with the UK – homes are decorated with Christmas trees (sapins de Noël), and, on Christmas Eve, children lay their shoes out by the fire in the hope that the Père Noël will fill them with presents and sweets. Mistletoe is frequently hung above doors to bring good luck, and nativity scenes are often given pride of place in homes. Unlike the UK, however, France passed a quaint and rather quirky law in 1962, which ensured that all letters written to Father Christmas would get a reply. (As a result, the workload of French elves permanently employed at the North Pole increased dramatically, with the Elf Worker’s Union ultimately calling for widespread strike action in protest against the extended working hours. The dispute was ultimately settled without Union intervention.)

As in many other countries across Europe, Christmas dinner plays a supremely important role in the French Christmas. Each region has its own traditional Christmas menu, with dishes like turkey, capon, goose, chicken and boudin blanc, a delicacy similar to white pudding. Another festive favourite is la bûche de Noël, or Yule log – a delicious log-shaped cake made of chocolate and chestnuts, harking back to the pagan tradition of burning a log from Christmas Eve to New Year’s Day.

France lends itself especially well to Christmas – the mountain landscapes of the Alpine regions are blanketed by a thick covering of sparkling snow throughout the autumn and winter, and cosy wooden chalets lit by strings of fairy lights with the tantalising scent of mulled wine and raclette in the air are evocative of the festive season. Alsace is also a magical place over winter; its continental climate ensures that Christmasses are cold, with snow virtually guaranteed. Historically, there has been a strong Germanic presence in the region, meaning that Alsace is home to 35 German-style Christmas markets, where visitors can enjoy munching traditional biscuits and sipping mulled wine to the sound of Christmas carols. The market in Strasbourg is situated in front of the breathtakingly beautiful Strasbourg Cathedral, and is of particular interest. It has been running for 431 consecutive years, making it the oldest Christmas market in France, and one of the largest.

Paris also features several charming Christmas markets – however, it is worth visiting the City of Light merely to enjoy the stunning decorations. The city certainly lives up to its nickname – a huge Christmas tree strewn with fairy lights and red and gold baubles is erected in front of Notre Dame de Paris Cathedral, and the trees lining the beautiful Champs Elysees are illuminated in gold, creating a corridor of light leading to the majestic Arc de Triomphe. The Galeries Lafayette, Paris’ most famous department store, is transformed into a veritable winter wonderland, bedecked with twinkling lights. Parisians also flock to the outdoor ice rink which is constructed in front of the Hotel de Ville over Christmas.

France is a great place to enjoy the festive season – twinkling Christmas lights, traditional Christmas markets and delicious regional food are wonderfully evocative, and make for an unforgettable Christmas.

Breaking News – Increased yield now being offered in Le Clos du Rocher development

We are pleased to announce an increase in the percentage yield being offered on the Le Clos du Rocher development in Dordogne.

The yield has been increased to 4.2% ex VAT, with all furniture included, for ALL apartments on this development.

This is a fantastic opportunity for those wishing to purchase property in Eyzies de Tayac, a beautiful 14th century town nestled on the left bank of the Vézère river in a lush, unspoilt valley surrounded by limestone cliffs in the heart of the fabulous Dordogne region which welcomed over 2.9 million visitors in 2008.

OPEN DAY Thursday 14th January 2010

Those choosing to invest here will also receive a NOMAD Card, entitling them to use any of the company’s catalogue of properties for an extraordinary 50 € per week.

Why not visit this stunning development and discover all the Dordogne has to offer?