News on property investment in the south of France:

Want to buy a French holiday home, but hate DIY with a vengeance? Tempted to dip your toe in the French buy-to-let pool? A brand new property could be just the thing. Louise Hurren reviews three Languedoc new build projects.

Buying a new build home brings benefits – like lower purchase price and running costs, little or no maintenance, modern materials and construction, a 10-year warranty, and all the fun of a “lock up and leave” bolt hole.

And thanks to the French government’s leaseback scheme, investors can get 19.6 per cent VAT rebates, guaranteed rental returns and peace of mind, with a management company handling maintenance and repairs, rental agreements and changeovers.

Buy in the right place at the right time and there’s a pretty penny (or euro) to be made in one of the world’s safest and most popular property markets. If off-plan property rings your bell, read on for the lowdown on three of Languedoc’s latest new build developments.

1. LES JARDINS DE SAINT BENOIT: FAMILY-FRIENDLY FUN AMONGST THE VINEYARDS

What is it, where is it?

In the Aude département of Languedoc, 30 minutes from Carcassonne, Les Jardins de Saint Benoit is a resort-style development of 171 units, being built by local developer Garrigae Investissements.

What’s it like?

Les Jardins is designed as an extension of the neighbouring village of St. Laurent de Cabrerisse, so it respects the local architectural style.

There’ll be one- and two-bedroom townhouses, and some three-, four- and five-bedroom villas. Each property has its own garden and terrace, and each villa comes with a garden and private swimming pool. On-site facilities include restaurants and terrace bar, indoor and outdoor swimming pools, shops, spa and a children’s club.

What’s the added attraction?

As an owner, you’ll have a share in the on-site vineyard and olive grove – and if you feel so inclined, you can even take part in the wine-making and olive pressing.

The bordering medieval gardens are being renovated to create communal areas where residents and guests can socialise, and locals will be actively welcomed at on-site events. The resort will be headed up by a former Club Med CEO, so you can expect plenty of fun and games!

How much?

The properties can be bought outright or leaseback, with four options offering different levels of return and personal use (the “pure investment” package translates into a net financial return of 4.22 per cent), with a nine-year index-linked lease plus a 19.6 per cent VAT rebate.

Prices including furniture start from €205,000 for a one-bedroom townhouse, rising to €442,000 for a three-bedroom villa.

What’s the rental potential like?

The leisure facilities combined with the Mediterranean climate should attract a steady flow of visitors year-round, which will certainly help on the holiday rentals side.

And what about capital growth?

Languedoc property prices offer a competitive alternative to neighbouring Provence, and French property expert Trisha Mason of VEF comments: “It’s anticipated that 30 per cent more people will move to the Languedoc region over the next 20 years, so for potential capital growth, anything in this region makes a sensible buy."

Where can I find out more?

2. LE PORT DU ROY: MOTOR BOAT MOORINGS ON THE MED

What is it, where is it?

This is a brand new marina, suitable for motor boats, fifteen minutes’ walk from the medieval walled town of Aigues-Mortes, on the canal du Rhône. The town is a very popular tourist destination, but it has enough going on to make it worth visiting year-round (in fact, it’s probably even nicer out of season, when the holidaymakers have gone home).

The development is about fifteen minute’s drive from Montpellier airport, where there are low-cost flights to London Stansted or Gatwick. Alternatively, nearby Nîmes has flights to London Stansted and Nottingham East Midlands.

What’s it like?

Le Port du Roy is made up of several private residences (residents will have swipe cards to “badge” themselves in and out) featuring Mediterranean-style villas and one- to four-bedroom apartments, with terrace-gardens and balconies.

Inside, you’ll find Italian terracotta floor tiles, polished limestone stairs, wrought-iron banisters, and a high level of finish. For your money, you get either a garage or an allocated parking space.

What’s the added attraction?

The big deal is the fact that many of the properties within the marina have long-lease moorings at the end of their private gardens. This, the views over the water and the proximity to a popular town with lots of great bars and restaurants plus a host of shops and other facilities makes for a pretty attractive package.

How much?

In the Quai San Marco residence, prices start from €174,000 for a one-bed house; moorings are priced separately but come with the property (you can’t buy one without the other!) cost from €45,000–€56,000. Or nearby, there’s Quai d’Honneur, where homes (with moorings included) start from €235,000; €520,000 will buy you a top-of-the-range, four-bedroom house.

What’s the rental potential like?

Le Port du Roy is scheduled for completion by late October 2008, so you won’t be getting much in the way of holiday lets before summer 2009. Having said this, homes on the water have a particular attraction, even for non-yachties, and these are right on the edge of the Camargue (think black bulls, white horses and pink flamingos) – both points which could be used to good effect when marketing a holiday rental.

Will I make money on a purchase here?

Without a crystal ball it’s difficult to be sure, but as demand for moorings on the Med currently exceeds supply, and is likely to continue to do so, property at Le Port du Roy has a unique benefit.

Make sure you do your maths, though. Besides the purchase price, you’ll need to factor in notaires’ fees of around 2 per cent (for moorings, it’s calculated at 4 per cent), property tax (around €900 per 100 square metres of living space), and residential tax (about the same). Then there’s the annual mooring charge of €1,700, and charges de copropriété (applicable to any home with common parts) of around €2,000 per annum.

Where do I go for more info?

3. CHATEAU JOUARRES: LIVE LIKE A LORD BY THE CANAL DU MIDI

What is it, where is it?

In the Aude département of Languedoc, just a minute’s walk from the Canal du Midi, this will be a development of 104 units built in the grounds of the existing Chateau de Jouarres, which will be converted to create a reception area, restaurant, bar and terrace, plus offices. There’s a chapel on site too, which the developer plans to turn into a wine school.

What’s it like?

The chateau dates back to 1896 and is located in a hamlet just behind a wine cooperative and some rather old houses that look like they have seen better days, but don’t let me put you off – there’s a certain olde-worlde charm to it all. There are some lovely mature trees in the grounds, including an alley of planes, so it has the makings of a nice spot, so long as some of the original features are retained.

What’s the big deal?

The old chateau building and surroundings have a certain charm, and there’s the cachet of being able to say you own a home “at Chateau de Jouarres, in the south of France.” Being so close to the Canal du Midi is a major plus, and the port at Homps (10 minutes walk along the tow path) is really nice, with four bars and restaurants (the garden at Les Tonneliers is well worth a visit) and a good wine shop. By car, you’re only 30 minutes to Carcassonne and its no-frills Ryanair flights, or 20 minutes to the A61 motorway.

How much?

Units are sold on a nine-year lease, starting from €131,231 including VAT at 19.6 per cent which can be reclaimed by the purchaser. For this money (so about €110,000, once you’ve clawed back your VAT refund), you get a one-bed apartment with 45 square metres of living space – not huge, but we’re talking holiday home rather than permanent residence, after all. On the ground floor, you get a garden, if you’re upstairs, it’s a terrace.

How much personal use do I get, and what about rental returns?

This is a leaseback-only development (a résidence de tourisme), so it’s ALL about renting out. Owners will get two weeks’ personal use (there’s no pure investment option available) and four per cent returns, but you can take your personal weeks’ use in stays of at least seven days, between May 15 or after September 20. Rentals will be handled by Eurogroup, France’s fourth largest tour operator.

What goes on out of season?

Arguably, not a lot. Although it can stay warm and sunny in the Languedoc until October and even later, the tourist season comes to a halt by mid-October, and the Canal du Midi closes to water traffic during December and January (the ideal time to come if you want a VERY quiet break!)

Where can I find out more?