Simple, Straightforward, Hassle Free Investment - Antibes, Cote d’Azur, France

The Usufruct or 'Propriete Nue' scheme means the investor pays just 60% of the total value of the property. Then a rental management company pays 40% for the right to rent out the property for a fixed 15 years term.

During the 15 years, the Management Company rents the property and pays all expenses including all taxes. Just before handing the property back to you, the Management Company is contractually obliged to fully renovate both the apartment and the building.

So, you only pay 60% of the total price now but after 15 years you own 100% of your property .
Combining the initial 40% discount with capital appreciation over the 15 years period makes usufruct a virtually risk-free, predictable and very rewarding investment. Furthermore, owners will not be liable for running costs or taxes linked to their property as they will not receive any income from it, which also makes it a hassle-free investment.

Usufruct is ideal for cash investors and borrowers as purchases can be financed at 65% of the investor’s 60% contribution.

Take, for example, a studio in Antibes with a market value of €183,000
60% of the property value is €110,000
65% mortgage of €110,000 euro is €71,500, meaning a cash deposit of €41,800 (including all purchase costs).
The value of the property after 15 years is €329.000. The estimated value is calculated taking into account inflation at 1.5% and a property market increase of 2.5%.

Net profit : €200 800
Personal contribution to pay in 2007 : € -41 800
Monthly mortgage repayment: € -600
There is no French capital gains tax payable on this profit.
The Usufruct is extremely popular with French investors and offers excellent resale potential.

A 5% deposit is needed to book a unit. Your deposit is transferred directly to a French notary and not to the developer. This is law in France and acts as protection for buyers.

Please contact Emma on 01-4964134 or at info@marlborough.ie for further information.