Posted on 24 February 2022
Sometimes, clients ask us if a ski chalet is a good investment, especially when compared to renting one for holidays. Of course, there is nothing better in life than settling down in a luxury ski chalet for the week. Whether this is in front of the log fire, on the veranda, or cooking traditional food in the kitchen. The thought of owning property means arriving anytime you want rather than working around booking agents.
Naturally, though, wise buyers wish it to pay eventually and, in most cases, make a passive money stream or cover the mortgage from renting. So, we put together this article which discusses the benefits of owning, tips for buying, and the rental investment market.
Is a Ski Chalet a Good Investment?
1: Money and Investment
Regardless of external circumstances, the most crucial aspect is your financial situation since this is not a small investment. Typically, mortgage providers require between 20 to 30% deposit. Property buyers must calculate monthly repayments for those who will rely on tenants to cover monthly repayments and factor in buffer zones for occasions for non-occupancy weeks.
For example, at the beginning of COVID, when many countries went into lockdowns, ski towns operated on bare occupancy rates. Additionally, as well as property prices, you will spend money on additional purchasing costs and taxes. Factor in maintenance costs because, as we all know, owning property incurs wear and tear. If you cannot commit 100% financially, consider an apartment instead.
2: When is the Best Time to Buy a Ski Chalet?
The notion that there is an ideal time to buy ski property is outdated. These days, many towns offer activities from Spring through to Autumn and summer. Therefore, it is not about timing and demand, but local research and investor knowledge about ski resorts make a significant impact.
3: Benefits of Owning a Ski Chalet
- Generate a passive income stream
- Long term capital appreciation
- Future place for retirement in the mountains
- Family holidays
- Great base from which to explore surrounding towns and attractions
- Luxurious travel niche so higher income
4: Rental Income and Keyholding
Consider keyholding requirements if you are not in the same mountain resort or at least the same country. More so, if you plan to lease your new ski property because renters require clean dwellings, pay a deposit, and like to have local information at hand. If rental returns are a priority, this is another field worth examining. What are the local, expected rental yields, and average occupancy rate for that popular destination you will buy-in? Do you want passive income streams or to cover maintenance costs?
Finally, consider how to market and advertise your ski property, as well as handle bookings. Don’t forget that marketing for summer rentals will be completely different from marketing for the winter season. Do not forget to target peak seasons and ski holidays—also research competition. A recent report said 90% of ski property owners rent their homes when they do not occupy them. Stronger competition means lower prices, but buying in a remote unheard village to stamp out competition will hamper potential bookings.
5: Local Research and Infrastructure
Remember, local ski seasons get longer at higher mountain altitudes because obviously, there is more snow, but check the resort’s other facilities, that people can do off the slopes. Ski property is about pursuing a fun hobby, but leisure. What does the après ski social scene look like? Is it family orientated or geared for young working professionals? How does the resort deliver for lifts, gondolas, and easy access to ski areas?
6: Local Investment
Also, look at local investment projects and plans. For example, resorts offer better capital growth potential, where the local council has a five-to-ten-year plan to upgrade and invest in infrastructure and social facilities.
7: Back Door and Dual Season Resorts
With more resorts operating all year round, check what they offer besides skiing. In most cases, mountain biking and trekking are core features, while some resorts enjoy golf and paragliding. If a particular ski resort is out of your price range for ski property, look at what is known as backdoor resorts. These neighbouring resorts use the same ski area but offer lower property prices.
8: Accessibility to Properties
From the airport, check the local transfer times. Generally, lower altitude resorts have shorter transfer times, but this downside is a shorter season. Balance the two. Also, look at local transport. Some resorts are car-free, with free shuttle bus services to others. Read about the closest resorts to Geneva airport.
9: Customer Base for Properties
Some resorts rely heavily on one nationality, and this is not ideal. Especially since COVID has shown that travel restrictions based on one nationality wipe out an enormous potential of rental clients. To maximise opportunity, look for an Alp resort that attracts various nationalities worldwide.
Also About Ski Chalets
Luxury Ski Chalets: So, to is a ski chalet a good investment, to summarise, yes, it can be, but local research of the Alps, financial management and marketing are key. Since luxury ski chalets attract more interest, this article discusses what to look for in a ski chalet to make it a wise real estate investment.
Search Ski Chalets for Sale: Finding an Alpine ski chalet in your budget and with desired facilities is an adventure with us. We at Skiing Property help buyers find the perfect chalet for investment, and all your needs at the best price. Start your search by browsing our ski chalets for sale. Each listing contains everything to know, including cost, location, home features, and contact details to receive more information via email or arrange a viewing. Alternatively, if you have any more questions, call us today and speak with an agent about whether ski chalets are a good investment.