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How
to buy a £90,000 home in
France
for
only £21,000 and
pay for it in 11 years
This
assumes that the investor is a higher rate tax payer
The
investor contributes £36,000 to a SIPP
Government
contribution £24,000
Total
investment by SIPP of £60,000
Borrow
50% of SIPP fund
Total
property purchase of £90,000
After
6 months reclaim the VAT
This
will be £15,000 in cash back to the pension fund*
(*
Subject to approval)
Therefore
the actual investment is £36,000 - £15,000 = £21,000
Also
property yields 5% of the property (£75,000 - £30,000 borrowing)
=
5% of £45,000 = £2250
Investor
uses income to repay borrowing. Loan
paid off after approx 11 years
-
VAT refunded at
19.6%
-
A guaranteed rental income which
is index linked.
-
Tax allowances e.g.
payment, repairs, maintenance, management expenses etc. which
can be offset against income.
-
Maintenance and management
paid for and arranged by developer/management company.
-
Fixed rate mortgages of
currently around 4.6% over 20 years.
-
Variable rates currently
much lower
-
Mortgages typically
available with 20% – 30% deposit
-
No
French Capital Gains Tax after 22 years of ownership
-
Potential capital growth,
currently averaging 11% per annum.
-
The
property is sold fully fitted and furnished
-
No
requirement to be a French citizen
-
Only
government approved companies are allowed to operate
leasebacks (We only deal with the largest developers with
a proven track record)
>>For
more information on mortgages and financing
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