The best of Languedoc Property Developments

French new build property developments are booming in Languedoc, south France, as property buyers from all over Europe are descending on this region of France looking for excellent property investments. Languedoc is currently a paradise for new builds and property developments, as property prices have risen faster here than in any other French region over the last 10 years. But it's not just the property investment opportunities that make Languedoc in the south of France a superb place to buy property on new build developments, the region itself is probably the best reason to invest in property here.

Property developments in the 'New' South of France

People buying new build properties in Languedoc's many new property developments are investing in more than just bricks and mortar. They're investing in a way of life - the chance to buy property in Languedoc, the 'new' South of France, an un spoilt French region that is a world away from the over-built-up nouveau-riche glam of the Cote d'Azure and Provence. Languedoc-Roussillon, despite the many property developments popping up all over the region, is still relatively wild and under-populated, with huge expanses of beautiful vineyards and 'garrigue' (herby scrub) stretching from long Mediterranean beaches to the mountains of the Pyrenees and Cevennes. The food is excellent, (Europe's best oysters and shellfish are produced here) and the region now produces some of France's best wines. So property development investments here allow buyers to experience the south of France as it used to be, without having to pay bloated Provencal prices.

10 Reasons why property developments in Languedoc-Roussillon represent a better investment

You'll find property development opportunities all over Europe, and the world. But new build investments in Languedoc, south France, offer many advantages over those in other areas of France, and Europe.

1. France, and especially the South of France, has a chaché that continues to make property here popular with wealthy buyers.
2. The French government's adroit handling of urban development (unlike in Spain, where development goes largely unchecked, ruining traditional villages and scarring the coast), means that property developments in Languedoc won't one day lose their value due to over-building or the erosion of the local culture.
3. The French government's tight control over what is build where by developers also means property developments in Languedoc are better built and more interesting architecturally.
4. The Languedoc region is booming, with more people moving to it than any other region of France. Property values, which are still low compared to Provence, are rising faster than any other French region.
5. Excellent roads: the A9 coastal motorway is about to be doubled in width, and the new A75 motorway means there are now three major routes to the Languedoc region of south France.
6. More flights: budget flights to the region continue to soar, with flights to Montpellier, Nimes, Carcassonne, Perpignan - and soon - Beziers.
7. Improved train links: Languedoc's high-speed TGV train links are excellent, and the new TGV line from Barcelona, which is about to open, will bring even more wealthy visitors and property investors from northern Spain.
8. Larger beaches than the Cote d'Azure and Provence, coupled with access to the Pyrenees and Cevennes mountains, make Languedoc the perfect place to invest in a second home - as it can be used in both summer and winter.
9. New build property, located in developments in Languedoc, can easily be rented out, as tourist numbers to the region continue to rise. Many property developers also manage these lettings.
10. France's generous leaseback schemes mean you can buy houses in property developments in Languedoc, south France, very tax-efficiently.

Leaseback schemes - the tax efficient way to invest in new build property developments in France

The French Leaseback scheme in Languedoc offers property investors an alternative to buying property the traditional way with some added incentives. This unique scheme allows investors to buy their dream home in Languedoc (usually a new build property in Languedoc in a property development) by ensuring that a proportion (or all) of the mortgage costs will be covered by a guaranteed rental income. With no French VAT (which is currently 19.6%) charged on Leaseback schemes in Languedoc, this type of investment can be an attractive option.

Where did Leaseback schemes come from?

The French government recognised that there was a significant shortage of rental property available - especially in the popular region of Languedoc-Roussillon. This was exacerbated by the fact that many holiday homes are often left empty by their owners, who didn't want, or couldn't, rent them out to holiday makers or short-term tenants.

As France is still the world’s top tourist destination, something had to be done to create an incentive for companies to build quality property developments in regions such as Languedoc that not only cater to the modern tourist’s needs, but that also help to support the local economy by achieving high house occupancy through-out the year. So they created the 'Residence de Tourisme' scheme. This allowed certain property developments to offer ‘Leaseback’ schemes, encouraging investors to buy new houses in such developments.

So how does it work?

Essentially, you buy the freehold of a Languedoc holiday home, be it an be-build apartment, a chalet, a cabin or a house. This could be part of a larger property development complex with the benefit of central facilities like a spa, gym, pool or even a golf course. Each unit is sold furnished, and the new-build's owner leases it back to either the developer or an accredited property management firm for a fixed number of years, - 9, 10 or 11 are popular choices. This is a commercial lease (‘bail commercial’), which has certain repercussions in French law. Within the lease, the owner can have use of the property for several weeks of the year with a fixed rental income guaranteed for the rest of the year. The level of guaranteed returns can vary, but 3% -7% is typical. Of course the more personal use you have, so the guaranteed rental returns will drop.

The management firm or property developer sublets the leaseback properties on a short term basis on behalf of the freeholders, offering other services such as cleaning and breakfasts that qualify the letting business as being like hotel letting, hence making the rents charged by the management firm subject to French TVA (VAT purchase tax). Within the scheme the French government agrees to offset the TVA payable on the purchase of the property against that charged to the short-let customers. In most cases you pay the VAT on purchase and receive it back from the government within five months of the purchase.

It used to be that a proportion of the TVA would have to be repaid if the property was sold within the 20 years, however recent changes to the law have now removed this penalty, but there are certain conditions that need to be met. For more on this new change to the law click here.

There's a huge variety of new build property developments on the market, or in the works, in Languedoc, south France. From simple developments of new houses to new build apartment blocks that overlook the sea, to golf-developments that combine property investment with membership of a golf club (usually with a brand new golf course) - you're bound to find a new house or apartment in a property development that meets your needs in the huge area of south France. Quite a few of the region's chateaux, abandoned for decades, are now being renovated by property developers to form the heart of up-scale housing developments in Languedoc, south France. Some property developments involve over 500 homes, stretching across some of the most beautiful of Languedoc's countryside. At least one includes a working vineyard.