Bonjour French Property Insider Subscriber,

I am writing you from a spa hotel at the Dead Sea on the Israeli side. From my vantage point I can see the blue waters of the mineral-rich sea that sits 423 meters below sea level (the lowest elevation on the Earth's surface), the olympic-size swimming pool of the Isrotel Hotel and another 14 hotels that were built on this spot -- Ein Bokek near the Zohar Hot Springs.

Aside from this oasis, there is little life along the shores of the Dead Sea, but many thousands flock here each year for the sheer experience of floating in the oily saline waters and taking in the medicinal benefits of the minerals. The resort hotels are booked solid, even in the month of August when the sun is the hottest and the ground parched to the point of cracking.

France cannot boast of a 'Dead Sea,' but there is no shortage of resort spots to enjoy or within which to invest. Although there are dozens, About.com makes note of the top six upscale spa resorts "that have relaxed visitors since the days of the Ancient Romans:"

1. Les Sources des Caudalie: This luxurious spa and four-star hotel near Bordeaux features a unique combination: spa treatments and wine. With its "vinotherapie" treatments, visitors can indulge in red wine baths, barrel baths, Merlot wraps, a crushed Cabernet scrub or a Sauvignon massage. The resort also features two restaurants, a bar and a panoramic cigar lounge.

2. Alet-les-Bains: Alet-les-Bains' thermal spa is not an upscale resort, but a simple government facility. This rural Languedoc village is high on charm, featuring medieval and Roman architecture. Situated about a half-hour from Carcassonne and in the heart of Cathar country, this is a simple village with a bakery, a couple small inns and some lovely 17th and 18th century façades. The thermal spa itself features dips in the thermal spa waters, a sauna, hydro-massage bath and massages, all at rock-bottom prices.

3. Argèles-Gazost: Argèles-Gazost, nestled in the Pyrenees Mountains a few minutes south of Lourdes, is an enchanting small spa village. Featuring a casino and a lovely downtown area, this town is surrounded by breathtaking views of the surrounding High Pyrenees. This is an ideal destination if you really want to earn those spa treatments through outdoor activities like hiking and skiing.

4. Dax: The village of Dax was France's first spa village, and it retains its prestige as an epicenter of relaxation to this day. Almost 60,000 people dip in the village's ancient waters each year. Situated in the expansive Landes forest, it is close to the Pyrenees and the Atlantic coast. The lively people of Dax make a visit a memorable experience. For a truly unique visit, come for a week in August during "La Feria," or the bullfights.

5. Evian-les-Bains: Think water and Evian is probably one of the first names that comes to mind. There's a good reason for that. This popular city attracts many for its curative waters, which have been bottled as drinking water for years. The thermal spas here offer several treatment packages, including some wonderful mother-and-child and father-and-child deals. The Evian "re-birth day" treatments are designed to energize. Evian's shoreline is also quite scenic, and the city is pretty.

6. Aix-les-Bains: With several thermal spa resorts, France's second busiest spa town offers splendid view of the Alpine Mont Blanc. Indulge in the thermal spa waters, with treatments that target those who wish to quit smoking, lose weight or just plain relax. Almost any treatment you can imagine is on the menu here. There is also a golf course, aquarium and casino here. Be sure to visit the Roman Arc de Campanus funeral arch.

If you are interested in more than just visiting these spas or others in France, you can invest in resort property that will provide not only pleasure, but income. Here are a few recently added to the market (prices are shown in British sterling -- £1 = €1.148 = $1.66):

***For Sale Chamonix Leaseback
France: Rhone-Alpes: Haute-Savoie: Chamonix-Mont-Blanc
1 BedroomApartment
£142,170
Rare leaseback property located in Chamonix - French Alps - already completed with 4.18% net yield

 

***Cottage Center Parcs - Sologne - France
France: Centre: Loir-et-Cher: Chaumont-sur-Tharonne
1 Bedroom Cottage
£280,830
VIP Cottage, Freehold leaseback property investment developed and managed by the European leader. 4,5% yield Guaranteed rental income for a minimum of 18 years, net of running costs, full 19.6% VAT rebate, possibility of usage, good financing available

***Luxurious Center Parcs Leaseback Country Cottages
France: Lorraine: Moselle
1 Bedroom Cottage
£221,160
Own luxurious 1 or 2 bed cottage within prestigious Center Parcs resort in countryside * Only £550 to reserve * Then cash in of only 2% purchase price * Spa, bike trails, horseback riding, children activities, swimming * 20 year leaseback/rental guarantee * Personal usage

***Off-plan Development in Pezenas
France: Languedoc-Roussillon: Herault: Lezignan-la-Cebe
2 Bedroom Villa
£223,790
Set in the beautiful southern France region Languedoc, the resort consists of luxury family houses with Mediterranean gardens, spa and swimming pool

 

***Off-plan Development in Pezenas
France: Languedoc-Roussillon: Herault: Lezignan-la-Cebe
3 Bedroom Villa
£251,870
Set in the beautiful southern France region Languedoc, the resort consists of luxury family houses with Mediterranean gardens, spa and swimming pool

 

***French Leaseback in Edenarc 1800 - Les Arcs 1800
France: Rhone-Alpes: Savoie: Les Arcs
1 BedroomApartment
£188,680
Edenarc 1800 is a 4-star development on the slopes, right in the heart of Paradiski and adjacent to the golf course. It will be entirely pedestrian and completely ski in /ski out

 

***17th Century 5 Star Spa and Golf Resort
France: Limousin: Creuse: La Souterraine
3 Bedrooms New Resort
From £280,000 to £280,000
Only 1 property of 34 left * 180% Buy-back Guarantee * Fully managed so no worries about rentals * 8% Guaranteed Return * Non-status finance * 4 weeks use pa worth £1600 per week * Outdoor pursuits * Children's Zone * 5% paid on deposit during renovation

***5 Star 17th Century Fractional Château Resort Hotel Suites
France: Limousin: Creuse: La Souterraine
New Resort
From £28,000 to £28,000
World Class Hotel Accommodation * 0% Non-Status Finance Guaranteed * Ready in Dec 2011 * Minimum 5% Net Return pa * 2 weeks usage pa worth £3500 to you each year * 150% Guaranteed Buy Back * Spa, Golf * Outdoor pursuits * Fully managed so no worries about rentals

***5 Star Château Resort Suites
France: Limousin: Creuse: La Souterraine
Château
£285,000
World Class Hotel Accommodation * 0% Non-Status Finance Guaranteed * Only 5 star chateau suites remaining * Ready in Dec 2011 * 5% to 10% return * 4 weeks free usage pa worth £1750 per week * 150% Guaranteed Buy-Back * Fully managed so no worries about rentals

***French Leaseback in Les Saisies
France: Rhone-Alpes: Savoie: Flumet
Apartment
£108,440
Luxury services in Les Saisies residence which offers numerous after ski services and facilities for complete relaxation, it also offers between occupancy and guaranteed investment yield

***Outstanding Ski Leaseback With Views of Mont Blanc
France: Rhone-Alpes: Savoie: Les Arcs 1800
2 Bedroom New Development
From £192,190 to £608,180
With outstanding views over Mont Blanc and easy access to the nearby chairlifts and the adjacent golf course, this resort offers luxury in the heart of the Paradiski area of the French Alps

***Château De La Cazine
France: Limousin: Creuse: La Souterraine
4 BedroomApartment
£305,000
Idyllically situated in the heart of France's spectacular Lake District, five star golf and spa resort Château de la Cazine comprises luxurious properties in a stunning natural setting offering a plethora of facilities for all the family

***Château De La Cazine
France: Limousin: Creuse: La Souterraine
2 BedroomApartment
£27,500
Idyllically situated in the heart of France's spectacular Lake District, five star golf and spa resort Château de la Cazine comprises luxurious properties in a stunning natural setting offering a plethora of facilities for all the family

 

***French Leaseback in Pezenas Close to Beziers
France: Languedoc-Rousillon: Herault: Pezenas
Apartment
£82,490
Exceptional yield up to 4.5% with bank guarantee: Set in the beautiful southern France region Languedoc, the resort consists of luxury apartments with Mediterranean gardens, spa and swimming pool


***French Leaseback in Pezenas Close to Beziers
France: Languedoc-Rousillon: Herault: Pezenas
1 BedroomApartment
£134,270
Exceptional yield up to 4.5% with bank guarantee: Set in the beautiful southern France region Languedoc, the resort consists of luxury apartments with Mediterranean gardens, spa and swimming pool

Combine pleasure with profit by considering an investment in a resort property. Many of these properties are "Leaseback" -- this is a real estate investment opportunity that combines diversification, safety, tax advantages, inflation protection and asset protection-and doesn't require much capital to get started. Best of all, your income from this investment is actually guaranteed by the French government.

Through this program, you can purchase qualifying property in France free of value added tax (19.6% in France; so a US$100,000 property is discounted immediately to US $83,600). And you can take-out up to a 20 year mortgage for up to 95% of the purchase price at a fixed rate of interest. While leverage this high is commonplace in the USA, it's virtually unheard of in Europe.

France is one of the world's top tourist destinations, and receives about 80 million international visitors each year...plus the French themselves typically prefer to vacation in France. Because there is a chronic shortage of short-term rental accommodations in France, the government offers a package of incentives to investors and developers of such projects.

Properties under this scheme run from US$50,000 for a studio in the Pyrenees to more than US$1 million for a villa on the French Riviera. And, since qualifying properties are in the most popular areas in the country--Paris, the Riviera and the Alps-they have excellent prospects for capital appreciation.

You own the property outright...but you agree to turn it over to a property management group for rental for a fixed number of years (typically nine). In return, you are guaranteed a net return after all management and operating expenses have been deducted. This return can vary from 4.5% to 6% depending on the development and the location.

These are real returns, indexed to construction costs. In other words, each year, as construction costs increase, your cash receipts increase as well. If construction inflation is 10%, your pay out will go up about 10%, too. Your return is evaluated each year. The worst case scenario is that you always get your original guaranteed return.

Depending on the project, you may have the right to use the property yourself for two to four weeks each year. But some developers don't allow owner use at all, so this is an important point to clarify up front. However, guaranteed returns generally go down the more weeks use you're allowed.

Asset protection? No one will try to sue you in France for your property. The French bureaucracy is difficult enough if you are French. Plus, although no one will know you own the property unless you tell them, for tax reasons you may wish to own the property through a corporation.

The biggest advantage of the Leaseback Program is how easy it is. The management company handles everything. All you have to do is designate the bank account where you want your rental income checks deposited.

After nine years, you can do what you want with the property; renegotiate with the management company for a higher pay out, rent the unit yourself, or sell the apartment. (Actually, you can sell the property before nine years have elapsed, but the new buyer is subject to the remainder of the lease period.)

All in all, the French Leaseback is a virtually hassle free, almost no-risk investment--perfect, if you're making your first plunge into international real estate, particularly in resort properties. Contact our office at fpi@adrianleeds.com to learn more about properties available under this program.