How about buying a self-financing property in France and then getting a discount from the French government?

Here's how to do it

Buying the freehold of a new or totally rebuilt property in a "classified tourist" area in France, and immediately leasing it back to the developer qualifies you for the scheme - called, with stunning accuracy, Leaseback!

You have to go through the developer's onsite management company (which becomes your 'head tenant') and sign up for a fixed period of between 9 to 11 years but that's a small price to pay to net a whopping discount. Read on, you'll be amazed to learn just how big it is!

The company - the head tenant - then sub-lets the property to tourists throughout the year.

This simple act will enable you to receive a huge discount off the purchase price by virtue of the fact that you will pay no TVA (the French version of VAT).

For example, if a leaseback property costs 100,000 euro you would only pay around 80,000 euro after deducting TVA, currently 19.6%. Don't forget that you would have to add French legal fees of about 3% of the net purchase price.

But even that would only take your total investment to about 82,500 euro.

In some cases we can arrange a 100% mortgage. To repay this over a 20-year term would cost around 500 euro per month if - for the sake of argument - you secured an interest rate of around 4%, a figure eminently achievable.

But those payments would be covered by a guaranteed, index- linked income - from the head tenant - of about 4,000 euro each year.

Therefore, for a relatively small capital outlay you could put together an exciting investment portfolio.

Leaseback properties are currently available in many parts of France, including prime locations in Paris, Normandy, Brittany, the Alps, the Cote d'Azur and Charente.

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