A new service to investors buying leaseback properties in ski resorts primarily to generate income but, in some cases, requiring the facility to occupy their apartments at almost any time of the year if they wish to do so, has been launched by The MGM Group, the French lakes and mountain property developer and holiday specialist.

Created in response to market demand, MGM’s new Lease with Flexi Option enables investors to buy a four-star standard apartment in the French Alps at a price which excludes VAT at 19.6 percent in return for a guaranteed rental income of three percent of the price paid.

The company claims that, unlike conventional leaseback arrangements whereby owners have private use of their apartments for just a few weeks each year, those who buy under the new Flexi leaseback option can use their apartments as much as they wish during the winter season and the summer season, as well as another four weeks during off-season periods.

Although the residence facilities – typically an indoor pool, fitness suite, gym, sauna, Jacuzzi, steam rooms and beauty centre – are closed in the months of May, June, September and October, owners still can have access to their apartments.

The value of the weeks used is deducted from the annual rental income of three percent and the owner benefits from a discount of up to 20 percent on the published price of each week (10 percent during on high season weeks, 15 percent in medium season, and 20 percent in low season).

Alongside the launch of the Lease with Flexi Option MGM has announced upgrades to its two existing leaseback schemes, providing owners with more opportunities to occupy their homes in the spring and the autumn as well as the traditional ski season.

“Increasingly owners regard their properties in the French Alps as year-round holiday homes, not just somewhere to go for winter sports,” says Nathalie Turchet, MGM’s London-based UK sales manager.

“With our improved leaseback schemes they can enjoy the French Alps for longer periods in the spring and autumn months as well.”

MGM’s construction arm manages and let the properties in their residences de tourisme, in conjunction with the group’s specialist hotel management company - La Compagnie de Gestion Hoteliere (CGH).

• HM Revenue & Customs (HMRC) has announced a new Double Taxation Treaty (DTT) with Thailand to commence on 31 March 2009.

Thailand along with The Netherlands, Libya and Ethiopia will become the latest countries to sign up to British bilateral taxation conventions, with the British Taxation Department in talks with several other countries for 2010.

DTT's aim is to eliminate the need for British investors to incur the double taxation of income and capital gains arising in one country and paid to residents of another.

The new taxation treaty will help provide investors with a certain element of certainty and a good deal more stability in their tax affairs.

The news is particularly good for international second home property developers and their clients, as once these new agreements are in place investors will be able to sell their property in one country and repatriate the profits to their home nation, whilst not having to pay any more that the maximum amount of capital gains tax in any one of the countries.

With the financial benefits due to begin, those looking to buy on the island of Phuket may be tempted by the Oxygen Bay resort in Bangtao which is due to begin construction in November 2008 with completion in January 2010.

Emerging market specialist, Experience International, is marketing the 3 and 4 bedroom duplex apartments. Properties at the Oxygen Bay resort start at £178,500 (THB 11,887,771 approx).

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