English
FrançaisHi All.
I have read all the negative stories about leasebacks on this forum and I sympathise with anybody who has found themselves in difficulty with a leaseback property.I bought 2 different leaseback properties in 2005 (different management companies etc,) and thankfully both are functioning as they should.The rent is covering capital mortgages on both properties.Just wondering what people think, would I be crazy to consider a 3rd leaseback?
Comments
jaward
Leasebacks 2010
28 February 2010hi Rasher,
I would be interested to know your % yield and what % deposit you put down when you bought
john
rasher
Leasebacks 2010
28 February 2010Hi JAWARD
The yields on both properties are 5.5%.They were both financed with an 80% loan to value repayment mortgage.
jaward
Leasebacks 2010
28 February 2010Hi Rasher,
I would say 5.5% is above average.Is that without any personal use?
Mine are 4.1 and 4.2% but with 4 and 6 weeks of personal use(which was my reason for buying.I put 20% on one and 30% on the other and ther is a shortfall of rent to total mortgage on both!
I don't know how you have done !.You must have a fantastic mortgage rate!
john
rasher
Leasebacks 2010
1 March 2010Hi Jaward
Both of my leasebacks are pure investmnet ie. no personal use. Both of the mortgages are linked to euribor and about 9 months ago they both dropped to approximately 2-2.2 %.Hopefully they will stay that way for 12 months or so to allow the outstanding capital on both loans to reduce.
Rasher.
sitarist
Leasebacks 2010
16 March 2010Hi, Rasher,
I have a leaseback in Pantin with a good yield of 5.5% and wondered if you would be interested in buying it. I brought it through Imoinvest and it has not given me any trouble yet.
Naz
narendra.keval@talk21.com
frenchie2803
Leasebacks 2010
17 March 2010Rasher
To be honest, yes you would be mad to buy a 3rd leaseback. My personal experience has been very negative and so management companies are insolvent that you do not know which ones you can rely. There are 2 big players like Lagrange and P&V but remember no company is too big to fail and information on an operator's solvency is incredibly hard to get.
I own one leaseback studio in Strasbourg, we had 2 operators in 2 years, looking for a 3rd one, no rent since august last year and we are trying to kick out the current operator by going to court. Incredibly costly and stressful. Believe me you are better off buying a classic buy-to-let, negotiate the price hard and appoint a local agent to rent it out for you. I have 2 buy-to-lets in France and Germany and never had any major issues. Be warned!