Posted on 17 September 2015
Purchasing a property in the right French ski resort in 2015 could make a lucrative long-term buy-to-let, said Skiingproperty.com in September.
For maximum rental potential, investors taking advantage of the favourable buying conditions should choose a dual season resort with a short transfer, long winter season, good snow record and resort facilities, including ski school, and ideally one that is linked to one of the larger skiing areas, such as the Three Valleys, Espace Killy, Paradiski or Portes du Soleil. Properties that are ski-in ski-out always let best.
Examples of resorts that tick these boxes include Tignes (Espace Killy), Courchevel (Three Valleys), Les Gets (Portes du Soleil) or Les Arcs (Paradiski). Meanwhile, investors looking for a complete hands-off investment that delivers a fixed annual income but with limited usage could consider a leaseback apartment. Leaseback developments, or ‘résidences’, come with on-site facilities and are fully managed by tourism management companies – this means rental return is rarely above three per cent and owners aren’t able to personalise their property as much as with a classic freehold.
Buying a classic freehold ski home and letting it yourself would typically suit owners who need to maximise rental income. Using a local property management agency to manage bookings and changeovers is a popular option, although a commission typically of 20 per cent of earned rental income would need to be factored into the costs. At least ten weeks occupancy should be achievable in the winter season, with eight in the summer, or ten in a year-round resort such as Chamonix.
For an example of a ski in-ski out leaseback development in Les Arcs, so with access to Paradiski, one of the largest ski areas in the world, is Edenarc 1800.