Scenario 3 - Leaseback on Cote d'Azur with no usage
Leaseback 2 bedroom apartment in Cannes in renovated building, fully furnished apartment just a short walk to the beach or La Croisette.
Net price of property with furniture
€220,000
Price of property and furniture with VAT
€240,000
VAT (to be paid for by developer) NB. lower VAT rate as it is a renovation
€20,000
Deposit (45.5%)
€100,000
Mortgage (54.5%)
€220,000
Outgoings:
Monthly mortgage repayment (3.8% over 25 years)
€620
Monthly mortgage interest only (3.8% over 25 years)
€380
Monthly frais de syndic (site fees)
€0
Monthly taxe foncière payable after 2 years
€61
Total monthly cost with repayment mortgage
€681
Total annual outgoings
€8,172
Income:
Guaranteed annual rental income: €8,800 (4% of the net price of the property)
There is no monthly shortfall as you actually make a profit of €52 per month). You have a guaranteed rental income over 9 years (could be up to 18 years). Should you wish to use the property you pay at a discounted rate.
Estimated 8% annual capital growth over 20 years = €1,118,629.71 by 2026.
