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Leaseback - what exactly do you get back?????

Posted by Hazndlynds-182433 - Created: 13 years ago
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Posted by Steve R-187639 - 13 years ago

Think the 4% might be the expected annual return in relation to the purchase price of the property.

Be careful on Leasebacks as I've heard that while the advertising claims that you have to put your property in the hands of a management company for 'only' 9 years minimum, they don't mention that it is the management company - and not the owner - who has first refusal on renewing the contract. You are then in for another 9 years.

You can get far greater returns on buying and renting yourself and I know of properties in Nice that offer between 10 and 12% of the purchase price per year. Higher risk as the income is not guaranteed as with Leasebacks but the risk is minimal due to the number of people looking to rent on a medium term (academic year) and summer lets basis.