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The Pros and Cons Of Ski Property Investment

The Pros and Cons Of Ski Property Investment

March 27, 2014 in Blog, French Property News by

Ski Property Investment

The popularity of French Alpine ski chalets as investment properties has steadily risen over the last few years and the trend looks set to continue. As a second home, a luxury chalet in a popular resort provides the perfect base from which to enjoy all that the pistes have to offer when the snow turns them into a winter wonderland, as well as activities such as hiking, climbing, kayaking, and paragliding in warmer summer months. The fresh mountain air, stunning scenery, and relaxed pace of life mean that a week away in your Alpine chalet is sure to leave you refreshed.

Ski property also makes an excellent business investment. Whether purchased by a company for use of employees, or simply as a holiday rental – you can see great returns in more than money. As a company let, a ski chalet provides an opulent environment to woo clients and hold important meetings. It can also be used to reward employees and for team building activities. If purchased as part of an investment portfolio that relies on rental income, large yields of over 5% can be expected – with excellent occupancy rates over winter months. To help you make the most of a ski property investment we’ve laid out the pros and cons in an easily comprehensible format.

Pros:

The French property market is currently a buyer’s market. Purchase prices and mortgage rates are both low, and motivated sellers are likely to accept offers. Outside of the French Riviera and Paris, the Haute-Savoie in the French Alps is one of the biggest property hotspots – and prices here remain much lower than in these other prestigious areas.

While purchase prices are low, there is still incredible demand for rental properties, particularly throughout the annual ski season. More ski tourists flock to the region each year, looking for quality temporary accommodation. The demand drives up rental prices, meaning an excellent yield can be expected. Many resorts are also now remaining popular year round, meaning that occupancy rates are good and set to improve.

Owning a ski property investment means that you get to make use of it. Whether for business or pleasure, time spent in the Alps is invigorating and satisfying. A week spent skiing, snowboarding, hiking or even just enjoying the scenery from the golf course could do you the world of good – and the chance to take a refreshing break is yours whenever you want it.

Cons:

Ski property as a second home does not always suit everyone. If you are elderly, inactive or have a young family, some resorts are simply not going to provide opportunities for you to enjoy your time away. This does not mean that you cannot take advantage of ski property as an investment; it just means that you need to give careful consideration to the location. Many larger resorts and towns, such as Chamonix, have a lot to offer children and non-skiers. Alternatively, you can maximise rental potential by simply opting not to use the property for personal recreation – take the rental income and buy yourself a week in the summer sun instead!

The income generated by ski investment property is dependent on a number of factors each year. Occupancy rates may dwindle in summer months if the resort closes or offers few activities. For property based at lower altitudes, inconsistent snowfall can also pose a problem. If temperatures remain too high, less snow coverage can lead to significantly reduced numbers of tourists. You will need a flexible business plan to ensure that you make the most of your investment in all seasons and circumstances.

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