|
|
|
LEASEBACK PROPERTIES
__________________________________________________
The V.A.T.
19.6%
The initial Buyer get a full VAT cash back of
the property
price 6 months after completion
__________________________________________________
The Management
A Commercial Lease Agreement with
a specialised
Management Agents.
__________________________________________________
The
Term
Initial lease term of 9 to 12 years. Thereafter
automatic renewal every 3 years
__________________________________________________
Termination
Not possible during the first term unless
sold to
a new lease holder
__________________________________________________
Redemption
Penalties
The mangement
company can claim up to 1 year rental Income during the first term.
__________________________________________________
Furniture
Fully furnished - Fully fitted Bathroom & Kitchen
The owner buys the furniture
__________________________________________________
Occupation
Average 2 to 4 weeks
Up to 8 weeks on selected developments
__________________________________________________
Property
Serviced: Student, Apart Hotel, Medical residences
Leisure: Ski, seaside, countryside holiday resorts
__________________________________________________
Capital Appreciation
Based on the index-linked rental appreciation
Construction (ICC) or Rental (IRL) Index
__________________________________________________
Tax Return
Compulsory. Declaration made on a yearly basis by
an acountancy firm.
__________________________________________________
Deductions Against Charges
Depreciation value - Condominium Charges - Tax Fees - Land Tax -
Mortgage Interests - Notary, Insurance, Bank Guarantee, mortgage and bank fees
+ refurbishment costs
__________________________________________________
Payments
Index-linked rental income paid monthly, quarterly or annually
The income is known from day one and guaranteed by the management company. In
some developements, the rent will be capped and decided at the outset.
__________________________________________________
Investment Purpose
Long tern guaranteed index-linked rental income
Pension Alternative - Affordable Properties portfolio.
Security - Self managed - No Involvement -
Cash Back - Ideal Holiday Home
|
|
|
BUY TO LET PROPERTIES
__________________________________________________
The V.A.T
19.6%
Although the purchase is with VAT, the buyer will not
get a VAT refund from the Authorities
__________________________________________________
The
Management
A Management contract (Tenancy Agreement) with
a Managing Agent
__________________________________________________
The
Term
Initial contract of 9 years renewable every 3 year
Maximum 15 years
__________________________________________________
Termination
Possible every 3 years during the first term
then every year
__________________________________________________
Redemption
Penalties
Equivalent to the amount of fees which would have
been
paid if the agreement had gone to 3 years
__________________________________________________
Furniture
Rented out Unfurnished -
The tenant brings his own furniture
__________________________________________________
Occupation
No personal occupation during the mangement
contract
__________________________________________________
Property
City Centre developments in need of
rented accommodation. 1 to 3 Beds apartments
__________________________________________________
Capital Appreciation
Usually based on the price
per Square Meter
__________________________________________________
Tax Return
Compulsory. Declaration made on a yearly basis
if rented out
__________________________________________________
Deductions Against Charges
Depreciation value - Landlord Condominium Charges - Management fees - rent
insurance - Land Tax - Mortgage Interests - Insurance, Bank Guarantee, mortgage
and bank fees + Refurbishment costs
__________________________________________________
Payments
Rental Income paid monthly. The amount is not
guaranteed by the management agreement however the rent can benefit from rental
warrantees: Deficiency rental warranty (for the first tenant) Deficiency vacancy
warranty (between 2 tenants) Unpaid rental warranty, Legal protection warranty.
Rent will be capped in certain areas
__________________________________________________
Investment Purpose
Good potential for capital appreciation -
Long term rental income - Flexibility - Affordable housing
Self managed - No involvement - Regular refurbishment can be organised by the
agent. Security
|
|
Hoe |
