Posted on 16 April 2013
Reports coming from Alpine developers indicate this season has been the best since 2006-2007, helped along by the availability of French mortgages, discounted property prices and a return in confidence from foreign buyers looking for a long-term lifestyle investment.
“It’s been a bumper year for snow conditions and people taking ski breaks,” said Julian Walker at Skiingproperty.com. “As a result there has been a noticeable surge in interest in owning an apartment or chalet in the Alps. Developers are keen to make the buying season last as long as possible so are typically open to price discounts or flexibility on rental yields, as resorts begin to quieten down. And lenders continue to offer some fantastic finance deals, which helps.”
One developer is offering a discount of eight per cent on leaseback apartments in a development in Belle Plagne, which covers all the purchase costs and brings a 4.1 per cent rental yield and week’s annual usage for the owner. Or, buyers at the same development can opt for a five per cent rental return for the period of the lease and pay their own costs.
Typical repayment mortgages for non-residents in France are starting on interest rates of around 2.40 per cent, requiring a 20-25 per cent deposit and coming with a 20- or 25-year term. There are also attractive finance deals available on leaseback purchases.
“We have leaseback properties on a new project in Châtel, in the popular Portes du Soleil ski area, with just a 15 per cent deposit required,” added Julian Walker. “The ski-in, ski-out developments offers some of the highest rental yields – up to five per cent – in the whole of the resort.”