1 Bed Apartment for sale in Haute-Savoie, France

Features
•Cash neutral investment, developer covers shortfalls (subject to status)
•5% minimum net guaranteed returns for 20 years
•No off-plan risk, hotel fully operational
•Renowned hotel operator, Esprit Ski, in place since 2008
•100% occupancy achieved during 2009 and 2010 ski seasons
•Facilities rarely seen in The Alps
•Excellent true ski in - ski out location
•Rooms and suites sold fully furnished to a high standard
•Closing costs paid by developer
•21 days free personal usage per annum


Full description:

Overview
The Hotel Des Deux Domaines is a 4 star hotel in the village of Belle Plagne, in the French Alps. This ski in - ski out hotel was completed in February 2008 and already has an established name within the ski industry.

•Cash neutral investment, developer covers shortfalls (subject to status)
•Low 20% deposit
•5% minimum net guaranteed returns for 20 years
•French leaseback opportunity
•No off-plan risk, hotel fully operational
•Renowned hotel operator, Esprit Ski, in place since 2008
•100% occupancy achieved during 2009 and 2010 ski seasons
•Facilities rarely seen in The Alps
•Excellent true ski in - ski out location
•Rooms and suites sold fully furnished to a high standard
•Closing costs paid by developer
•VAT on purchase paid and reclaimed by developer
•VAT on rental income paid at source
•No maintenance fees
•21 days free personal usage per annum

Development

A combination of traditional opulence and up to date technology. This luxury development is the only 4 star hotel in the La Plagne region.

On the ground floor there is a reception, lounge area, bar and restaurant, as well as children’s facilities such as a nursery. There is also a leisure area and relaxation room.
The first floor features what is know as a wellness area exclusively for adults, where guests can relax after a full day of skiing.

•Rooms and suites from 28 Sqm – 110 Sqm
•Team of experienced hotel managers
•Dedicated in house nursery
•Luxury fixtures and fittings
The hotel provides a range of facilities rarely seen in the Alps including:
•Indoor swimming pool,
•2 saunas
•2 hamams / steam rooms
•Indoor spa bath and outdoor hot tub spas
•Extensive childcare
•Massage rooms
•Ski lockers with heated boot warmers
•Outdoor and underground parking
•Wifi connections in all areas of the hotel
•Ski in - ski out access from the locker room
The hotel rooms are sold on a “French Leaseback”: basis where the investor acquires the freehold interest in the room or suite and then leases it back to the developer. The developer has concluded a back-to-back lease with the esteemed operator, Esprit Ski, which assures the investor a minimum 5% return per annum.

The leaseback structure provides a number of significant benefits to the investor:
•19.6% VAT paid by the developer
•NO letting agent’s fees or marketing costs
•NO repairs / refurbishment – Esprit has a full repairing lease ex wear and tear
•5% minimum net guaranteed yield for 20 Years - creating a potential cash neutral investment (subject to status)
•Rooms are sold fully furnished to 4* standards
Cash Neutral Investment:
•The guaranteed rental returns a minimum of 5% net can service mortgage payments (subject to status) and create a cash neutral investment opportunity. The developer will cover any initial shortfalls with a one time cash payment subject to a pre-defined mortgage qualification being met.
Capital Growth:
As construction in the surrounding area is controlled by strict regulations, there will be a limited number of new developments in the area, this will ensure the value of the property remains.
The surrounding area of Savoie has experienced good growth in recent years, the FNAIM (Association of French Estate Agents) was recently predicting growth of 4% across France, with certain “hot spots” such as the Alps likely to enjoy higher growth.

Finance:
•Up to 90% mortgages available (subject to status) at sub 5%p.a. interest rates
•Financing charges can be offset against the rental income
•The value of your investment can be written down over 30 years. If you hold the property for over 15 years, then you would be exempt from any capital gains tax in France on disposal.
* In the event that a potential investor does not fulfill the requirements for the above mortgage criteria it may be possible to purchase a room within the Hotel Des Deux Domaines but small annual shortfalls may apply. These shortfalls can potentially be eliminated with projected increased off-season occupancy increases over time.

IPIN is working closely with Savills Private Finance, which has had the project approved by a number of French banks. Savills can assist investors to arrange mortgages to finance their purchases of units in the hotel, taking into account the personal circumstances of each investor.

Taxation:
As with any French property purchase VAT applies at 19.6%. Due to the mechanics of the French Leaseback system this can be reclaimed. Typically the investor is required to pay this initially and then action the reclaim. With this investment the developer has negotiated that they pay this figure and reclaim on behalf of the investor, resulting in a VAT free purchase from the IPIN investor’s perspective.

As standard there is tax payable on income generated from the rental of the property. Usually investors are required to register and administer this on an annual basis. The developer has agreed a discounted fee from reputable Deloittes to manage this on behalf of investors, for this project. Taxes payable are paid directly to the tax office creating a minimum 5% guaranteed income to the investor net of VAT.

Why Invest In Hotel De Deux Domaines?
Hotel Des Deux Domaines opened in 2008, and therefore has established name in the winter tourism sector. It remains the only 4* hotel in La Plagne.

The hotel has experienced high occupancy rates even in the current economic climate. In its third season, the hotel has enjoyed high levels of repeat bookings and in 2009/2010 winter season, there have been no room vacancies throughout the season. There is little in the way of hotels and high quality accommodation in the area, making this hotel a more attractive investment.

Personal use*:
IPIN investors are able to use the hotel room they are invested in on an annual basis. Room owners have the option of using the room at no charge during non-peak periods or to benefit from significantly reduced rates during peak ski season.

The 21 free days allocated to investors must be taken as 1 winter low season week and 2 summer weeks.

In addition room owners benefit from a reduction in meal costs while at the hotel and reduced Esprit flights, subject to availability.

*This will not apply if investors place this investment in a SIPP, as there are restrictions concerning this investment type. Owners invested in a SIPP may stay in alternative accommodation under preferred terms.

SIPP Options (Self Invested Personal Pension):
This investment is considered as a commercial property investment and qualifies for a Self Invested Personal Pension (SIPP).

Alternative pension:
The IPIN Deux Domaines model can be treated as an alternative pension investment. With a guaranteed rental of 5% pa for the duration of the 20 year mortgage term and sub 5% interest rates (subject to status) it is possible that you can invest your 20% deposit and have no or little additional costs over the 20 year term after which you are the freehold owner of an asset that has been subject to appreciation. Real estate can be the perfect vehicle to safeguard wealth for later years.

Finance

Mortgage Options

Up to 80% mortgages available (subject to status) at sub 5%p.a. interest rates

•Financing charges can be offset against the rental income