Posted on 21 October 2011
Skiing property in France is currently some of the most popular property in the world. This is surprising given that little has changed in the market for the last 4 years. We expect fuss and flapping about US property, because of the properties available at discounts of up to 60%. But property prices in France have hardly fallen, nor are they showing any great growth potential. But in fact, this is the reason for its appeal, the stability. Here are three reasons why we are all so keen on French skiing property right now.
1: Stability Economy and Property Market
Europe is falling apart at the seams due to the sovereign debt crisis. Greece, Ireland and Portugal have already needed bailouts, and Spain and Italy are not out of the woods yet by a long chalk. Thus, countries like France, with strong, stable economies are standing out as the places to invest.
During the boom we all went daft for high returns, so many people became so enamoured cheap property on the proviso that at such low prices it couldn’t fail to make money, that they forgot to consider the possibility of what would happen if they never actually got the property they paid for. Either that or they went with a sheep mentality, that because so many people were doing it it must be safe.
Now we know that this was folly. Those buying property today are putting stability above returns and French skiing property offers excellent stability, as well as the chance for excellent long term capital growth — not to mention great skiing holidays. Skiing property in the French Alps will never be cheap, but because it attracts wealthier buyers, there are less people panic selling in low times and so prices hold in unstable times, making it a safe investment.
2: Leasebacks Shine as World Beating Investment
Further to the effect laid out above, leasebacks are once again en vogue so to speak. During the downturn, the low 4-5 percent returns on offer with leasebacks were sniffed at, but now buyers only see the safety in the fact that those returns, albeit not spectacular, are guaranteed by the French government.
3: SIPP Investors Growing in Numbers
French leaseback ski properties are the perfect SIPP investment, because they offer stable, safe guaranteed returns year in year out for periods of around 15 years. And, because of the fact that there is little room for new development in the top ski resorts, there is a good chance that prices will appreciate considerably during this time.