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Everything you always wanted to know about France - from France |
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An Example of investment returns on a usufruiteFor simple and straight forward capital growth opportunities we can offer properties on a freehold basis where the use -usuifruite- has been sold seperately, this is not to be confused with a leasehold/ freehold situation, there is no lease.. Hence you can buy a property at 50% -55% of its present market value and, at the end of the 'usufruite' period (16 years), regain posession at no cost. All charges and property taxes on these properties are borne by the owner of the 'usufruite', hence no costs after the original investment, return of the property in good condition, no hassles with management firms or tenants, and as 16 years will have expired no French capital gains tax to pay. You pay 50% of the value but benefit from property inflation working on 100% of the value. Interest only and repayment mortgages available. As an example, take a house with market value of 100,000 euros, - Cost buying it on the 'Propriete Nue' principle 50,000 euros - Newbuild, hence legal fees of 2%-3% ............ 1,500 euros - Total Cost 51,500 euros Possible gains over 16 year period - Assuming a low figure of 5% annual property price inflation (according to INSEE, the French state statistics office, prices in the region we have developments rose by 65% over a six year period to 2004) - 5% of 100,000 over 16 years 118,287 - Total Value of Investment after 16 years 218,287 euros - Total profit on investment 166,787 euros which represents 9.5% p/a compound interest on the full original investment. There is no French capital gains tax payable on this profit There are over 2,000 features and articles on this site about French life and living in France. You can search from the search box above. Do browse through our website and please use the advertising links, they help pay for the site. I do try to reply to all mail - Contact Me - most is about property or living in France. I publish comments in this newsletter which I believe are of interest and may help find answers for people wanting to come to France. I hope readers will go to the adverts which help support our overheads. |
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