Posted on 13 April 2022
Whether investing in ski property for holidays and lifestyle or a wise financial investment for your future, there are always certain things to consider in this specialist niche. Additionally, many ski property buyers look to generate an income from their new purchase; even those who bought the home for family holidays want to turn it into a cash machine when not in use. In this easy-to-read article, we talk about why ski property is a good investment, what to look for in property, how to perform location research, generate rental income, backdoor resorts, and leaseback ski property. So, let’s start.
About Investing in Ski Property
6 Good Reasons to Buy Ski Property
- Generate a passive income stream
- Long term capital appreciation
- Future mountain place for retirement
- Family holidays
- A great base to explore surrounding towns and attractions
- Luxurious and specialist travel niche
What to Look for in Property
- Never think of ski property in terms of short-term capital appreciation
- Convenience – Ski-in, ski-out homes always sell simply because of the easy convenience to ski slopes. Look at ski transport, lifts, and cable cars to find out how long to the slopes.
- Remember, south-facing properties get more sunshine
- Renovation homes rarely recoup costs on property values
- Ski rooms to store equipment add value and provide convenience
Ski Resort Tips for Finding Property
- Look at resorts with set plans to invest in amenities, real estate markets and infrastructure over five years
- What is the proximity to the nearest airports?
- Length of the skiing season
- Is there a strong tourism market from Spring through to Autumn?
- Does the tourism market target all nationalities rather than rely on one?
- Does the resort regularly hold events? (These boost rental demand.)
- What modes of transport go to the resort? The more, the better
- What off-slope activities are available?
- Does the resort have snow cannons in case of short snowfall?
- Research the ski infrastructure of the ski area, the resort taps into
Backdoor Resorts
Backdoor mountain resorts share access to the same ski area as established resorts but offer lower prices per square meter. For example, the Meribel region is out of the budget for some buyers, but they can consider nearby Les Menuires. Likewise, perfect Tignes is a suitable alternative to Val d’Isère. Those with starting budgets should look at Les Carroz, Samoens, Megeve, and Les Gets backdoor resorts.
Leaseback Properties
Anyone looking for buy-to-let rental income or owners who plan to use their property for just a few weeks might like the French leaseback scheme. Legally introduced in 1967, to increase the quality and quantity of touristic accommodation, house hunters purchase a freehold, self-catering property to lease back to a management company for between 2% to 6% on rental income. Additionally, get a 20% VAT refund off the property price. The downside is that owners don’t have a say on décor and furnishings and have to book your slots in advance, so they won’t be able to use your new ski property ad hoc. However, the leaseback scheme leaves all the management side of rentals to the professionals.
Investment Rental Property in the Alps
Focus on locations with a high rental yield. For example, some resorts like Val d’Isère ski resort generates more rental profit than others because local council investment paid off and boosted their tourism market; hence there is less rent availability all year round. A reasonable occupancy rate is 30 weeks, but you need good marketing and management skills to manage this. Many owners sign with ski holiday rental companies, who manage the property and rentals in return for a commission. Surprisingly, the resort’s altitude also plays a huge part. Lower sitting alternatives like Chamonix do not generate high winter yields, but they perform well from Spring through to Autumn, which high altitude resorts cannot.
When is the Best Time to Buy a Ski Chalet?
Some people think there is an ideal time of year to buy property. But there is not. These days, many towns offer activities from Spring through to Autumn and summer. Therefore, any property opportunity is not about timing and demand, but local research and investor knowledge about ski resorts make a significant impact. Instead, take your time to perform local research. Visit during Summer and Spring for dual season resorts. You will know when you have found the right location and property to buy.
Buying Ski Property in Switzerland
Congratulations on choosing this popular destination, with fantastic winter mountain ranges. Alpine ski trips never disappoint, and over ten years, investment into new property boosted the popularity potential. Owning an Alpine chalet or apartment, whether luxurious or bargain, is not only a dream home but also a specialised investment niche. This housing market offers much in property prices, rent income periods, and ideal capital growth over mid to long-term periods.
- Read more about buying property in Switzerland.
- See ski chalets and apartments for sale in Switzerland
Buying Ski Property in France
Investing in France is much easier than in other countries, and in recent years, mass developments saw many modern houses and homes come on the market. Enjoy the latest home technology, luxury décor and design, and the additional option of leaseback ownership attracts investors and those who want a buy-to-let real estate purchase.
- More about buying a ski property in France
Reasons to Invest through Skiing Property
- Expert Advice: Our knowledge and experience mean we can pass on our expert advice on how to make a wise investment.
- Property Portfolio: Our portfolio includes an extensive range of chalets and apartments, so purchasers find what they want within their budget.
- Independence: We are an independent company with no contracts with developers or resorts; hence our advice always puts purchasers first.
- Services: We understand that investing in ski real estate is a significant lifestyle investment. Hence take quality time to consider your requirements, show suitable properties and support and inform you of the buying process and investing in ski property. Call us today if you want to chat with a local agent.
