Investment - French Inversion Property

Peartree

Came across this means of investing in property in France today:

http://www.1st-for-french-property.co.uk/reversion-french-property/faq.htm

It appears to be a means of buying property of elderly owners in France, who need a lump sum, at a reduced price and, rather morbidly, gambling against their life expectancy with an annual sum.

However, the current owners are evidently doing this voluntarily and it does seem to meet the needs of someone like myself who would like a reasonable investment and, longer term, a property abroad.

I'm have my hands full with my own property renovation project at the moment but would also like to have a property abroad a bit later on and I'm a bit concerned about 'missing the boat' on current prices. I also have a bit of money to invest due to endowment compensation and subsequent restructuring of finances.

Would welcome advice from those wiser than myself on this one. There must be a catch somewhere (aside from the (oh dear) life expectancy gamble).

Peartree

Duh! Reversion not inversion!

jonesMUFCforever

Peartree wrote:

Came across this means of investing in property in France today:

http://www.1st-for-french-property.co.uk/reversion-french-property/faq.htm

I'm have my hands full with my own property renovation project at the moment but would also like to have a property abroad a bit later on and I'm a bit concerned about 'missing the boat' on current prices. I also have a bit of money to invest due to endowment compensation and subsequent restructuring of finances.

Would welcome advice from those wiser than myself on this one. There must be a catch somewhere (aside from the (oh dear) life expectancy gamble).

I think before touching something like this with a bargepole I would go and seek out a lawyer specialising in French Property and tax laws!
They want you to think that the prices are low now to entice you in.
There might be nothing wrong here and I can only speak for myself but I would not be tempted.

Cook_County

This sounds quite similar to buying properties in the UK with sitting tenants who have protected tenancies or buying short leases that will expire.

The Americans buy and sell life insurance policies on other people's lives; with the guarantee that the insured person gets some money while alive and the bet that he or she will die soon so the investor gets the lump-sum.

There will be significant French tax implications plus Napoleonic inheritance laws to address so the structure needs to be examined. I agree with ejones999.

ManAtHome

Remember the very famous one in France - solicitor offered this sort of deal to middle-aged lady who ended up being oldest woman in the world, she outlived solicitor and his kids...

jamescredmond

ManAtHome wrote:

Remember the very famous one in France - solicitor offered this sort of deal to middle-aged lady who ended up being oldest woman in the world, she outlived solicitor and his kids...

I remember the old girl
.. she lived to 116, god bless her. perhaps the solicitor who struck the deal liked the fact that she smoked ( won't be long now, won't be long now ) but she was still rolling up at 114, long after the solicitor had pooped his well-heeled clogs. highly unusual and damned unlucky for the solicitor but let this be a warning, along with the incredibly complex french inheritance and tax laws.