Pierre et Vacances - Leaseback Provider

[AlexShelton]

Hello guys and gals,

my name is Alex and I'm pretty new to investing in real estate.

I'm an online entrepreneur by day and looking to park my cash into some investments that I hope to perhaps sell in 10 years time (when i turn 30)

I've had an opportunity presented to me that involves purchasing a studio in aix en provence on a similar agreement to this... http://www.pierreetvacances-immobilier.com/btoc/home.php/lg/uk

Not having any family with expertise in this area, I hope some of you can help

All feedback is appreciated

Cheers!
Alex

 

[pboyles]

Hello guys and gals,

my name is Alex and I'm pretty new to investing in real estate.

I'm an online entrepreneur by day and looking to park my cash into some investments that I hope to perhaps sell in 10 years time (when i turn 30)

I've had an opportunity presented to me that involves purchasing a studio in aix en provence on a similar agreement to this... http://www.pierreetvacances-immobilier.com/btoc/home.php/lg/uk

Not having any family with expertise in this area, I hope some of you can help

All feedback is appreciated

Cheers!
Alex

Alex

Be very careful with French leaseback. At the end of the 9 or 11 years P&V may renew the lease regardless of whether you agree or not, if you refuse they are entitled under French law to substantial compensation. This will obviously affect the resale value and may make the property extremely difficult to sell.

A lot of these type of developments were sold in the Alps 9 or 10 years ago. People are now finding out that the whole deal was mis-sold in that they were promised that at the end of the lease they would have 52 weeks a year access and be free to do as they please with the property. This could turn out to be more akin to a timeshare, I would avoid it to be honest.