Fractional Ownership Vs French Leaseback

Looking to invest in French properties? Two options you can use are Fractional Ownership and French Leaseback. The following article will briefly discuss the pros and cons of the two options.

The principle difference between the two options is that with a French Leaseback you can claim your VAT as opposed to Fractional Ownership. Another benefit of French Leaseback is that you are guaranteed an income from the property management company regardless of whether the property is occupied or not. However with ownership properties you share the ownership of the property, which makes it difficult to sell. Another disadvantage is that they are extremely rare in France and most properties are located in Spain, Portugal and Florida.

Fractional ownership properties allow you to buy bigger and more expensive properties since you would be paying only quarter of the value. Although you can gain access to a bigger property, ownership properties limit your stay at the property to a quarter of a year while a property on French Leaseback will allow the owner to stay up to six months of the year. Ownership properties also have a complex calendar roster system for the four owners while Leaseback property owners can stay at the property whenever they want with a few restrictions for some dates. Therefore Fractional Ownership is ideal for those who have some extra money and want to use it as a holiday destination and French Leaseback properties are great as an investment for those who want to use the property all year round and make use of all facilities.