#1 THE
LOCATION,
GOLDEN RULE IN REAL ESTATE
Location
is the No. 1 criteria to select depending:
- Focus on
a renowned resort with a quality ski area: Choose a resort that offers access to a large ski domaine
ideally linked to different resorts. This will ensure that skiers won’t get bored,
especially if they are visiting the resort year after year. A resort with a ski
area offering several hundred kilometers of slopes will be more appealing.
Choosing a renowned resort normally means they have invested into the
infrastructure and facilities, appealing to different types of people. This will ensure that the village offers a
decent level of restaurants/bars, shops (local artisans, epicurean products),
activities and entertainment for the whole family (concerts, children's
entertainment) but also guarantee the presence of doctors and a medical center.
- A resort
with character and inhabitants all year round. Beyond the attractiveness of
winter sports, it is preferable to focus on a resort which has preserved its
mountain village soul and which lives all year round, offering a real quality
of life throughout the seasons. Dual season resorts will mean that more
restaurants and facilities will stay open for longer periods of time which is
attractive for tourism and may increase the number of rental weeks.
- Think
about alternatives to skiing: in recent years the Alpine resorts have adapted
to different activities. Vacationers
like to take advantage of leisure infrastructures and other ancillary
facilities: aquatic area, spa, ice rink, cinema, bowling...Especially since the
health crisis in 2020 the appetite of the French and that of foreign
tourists for stays in the mountains still remains intact. Everyone now
aspires to enjoy the great outdoors all year round.
With the
development of teleworking, what could be more pleasant than enjoying an office
with a view of the snow-covered mountains. Which explains the good shape of the
mountain real estate market. It’s a tourist destination that always has the
wind in its sails!
Instead,
opt for dynamic resorts that diversify their outdoor activities as much as
possible, summer and winter, even 4 seasons, but also with cultural activities.
Enough to rent throughout the year, knowing that it generally takes 5 weeks of
rental per year to balance the costs of an apartment in the mountains.
- Easy
access by road and air.
Ensuring
easy access in summer and winter is essential to guarantee a successful investment.
Ease of access is also understood by the presence of an international airport
1h30 from the station and a TGV station within a 50 km radius in order to
guarantee the presence of an international clientele throughout the year.
- Heart of
the village or close to the slopes?
In terms of
location in the resort the question to ask yourself is: Am I not too far from
the ski area and/or the center of the resort, transport and other shuttle
routes?
Choosing a
location in the village with easy access to the ski area by free shuttles is
ideal. Being able to walk to get the croissants in the morning or go for a
drink in the evening after returning from skiing without having to take the car
is the height of luxury for a ski holiday...
Saying
that, we are experiencing a higher demand with our owners who are wanting to be
within a 15 minute walk to the village. Being slightly out of the village, but
still on a bus route may mean that you have more elevated views and more open
space.
#2 HIGH END
FINISHES
&
ADAPTED APARTMENT TYPOLOGY
Ensure
quality services and a typology of apartment adapted to the market
Today, the
quality of construction is also a significant parameter.
A key point
for the real estate sale in the future in good
condition and when the time is right for you.
It is
important to select a property with services that meet the demands of a
clientele who does not come to the mountains just to ski!
Gone are
the days of the 20 m² cabin studios where we crammed in for an intensive ski
weekend.
Today it is
preferable to favor large apartments. Both for resale and for tourist rental in
the case of rental investment. Studio cabins and other very small spaces are
now discounted for seasonal rentals.
Be sure to
ensure a good configuration of the apartment: spacious living rooms, large
terrace or balcony, pleasant well equipped kitchen for cooking with the family,
rooms in the form of ensuites with private bathroom to avoid traffic jams for
the shower upon returning from ski...Most families like to cook at home so
having a comfortable space adapted for this is essential
Today,
vacationers aspire to find at least the same comfort as at home, if not better!
Underfloor
heating, electric roller shutters, large showers, electric shoe dryers are all
services which . And to go further, additional equipment such as a Jacuzzi, a
sauna, a spa bath, a fireplace provide undeniable added value to appeal to the
greatest number of vacationers or future buyers when you wish to resell your
property.
Some
buildings also offer common areas with gym, sauna and hammam, relaxation room
which can be great assets. On the other hand, although it may seem tempting, it
is preferable to avoid swimming pools which will considerably increase the
co-ownership charges due to the very regular maintenance which must be devoted
to them. Instead, choose a property close to an aquatic center which offers
these facilities.
#3 NEW
BUILD OR EXISTING PROPERTY ?
It is
tempting to consider that older apartments or chalets in the mountains often
have more charm, and often has a lower price point. However, this idyllic
picture of older real estate can quickly present major disadvantages in terms
of insulation, particularly thermal insulation. A black spot in mountain
regions where the climate can be harsh, and which forces new buyers to devote
an additional budget, sometimes very high, to renovate their property.
Especially now with utility prices rising, an energy efficient home will save
you money both in the short and long term.
On the
other hand, if work is necessary, it is not uncommon for it to be very
complicated to find local craftsmen to carry it out, particularly if the
property purchased is very isolated in the mountains.
Also be
careful with co-ownership and maintenance charges for your real estate
investment in the mountains. In resorts, homes have to be heated a lot and some
old properties can be a pit in terms of energy consumption. Especially since
the ban on renting energy strainers, labels E, F and G from the DPE, will undoubtedly
be extended to seasonal rentals.
At a time
when thermal strainers are being criticized, it is essential to ensure that you
benefit from the best standards in terms of sound and thermal
insulation. The added value of new construction in terms of energy consumption
is no longer debated to benefit from the latest environmental standards and
therefore reduced energy bills. Investing in new properties in the mountains
therefore presents less risk.
Added to
this is also the financial aspect: notary fees in new buildings are 2%
compared to 7% in old buildings.
You should
know that with the scarcity of land, new developments in ski resorts will be
increasingly rare and therefore more and more expensive. Investing now in a ski
apartment means building up real estate assets that will increase in value in
the long term.
#4 FISCAL
ADVANTAGES,
VAT
RECOVERY OR PINEL INVESTMENT
Today when
purchasing a new property it is possible to recover the 20% VAT for owners
who wish to rent out their property when they are not using it! The rental
yield value for seasonal mountain properties is a real niche for owners, who
can count on this income to reduce their annual charges effectively, and in
particular through para-hotels or rental status. Non-Professional Furnished
(LMNP).
Another
possibility in terms of tax advantage, invest in the Pinel law.
The Pinel
law is the tax system that allows French taxpayers to invest in new real
estate and benefit from a tax reduction. The Pinel zones are divided into
several categories and, from now on, certain mountain municipalities are among
the towns eligible for this real estate tax exemption system. Investors can
thus benefit from the tax advantages of the Pinel law in these ski resorts. The
Pinel Law allows you to benefit from tax reductions when you buy a new
unfurnished property (or in a future state of completion).
Several
other conditions are required to benefit from tax exemption under the Pinel
law:
• The accommodation must be rented for a minimum
of 6 years after the property purchase
• The rental amount is capped
• Tenants must have income not exceeding a
certain ceiling
• The accommodation must comply with the 2012
thermal regulations and must be rented unfurnished.
#5 SELECT
THE RIGHT AGENCY
TO RENT
YOUR PROPERTY
There are
many agencies that offer their services to ensure the rental of your apartment,
but how can you be sure to select the most efficient one?
- First of
all, be sure to look for a structure that offers a complete solution from
rental to management of your apartment and not just the simple search for
vacationer tenants via online platforms.
It is
important to ensure the seriousness of the agency that will manage your
property to guarantee its sustainability. The agency must be able to maintain
the apartment in impeccable condition and deal with urgent needs such as
replacing a light bulb, bleeding a radiator, etc. To do this, some agencies have
a “jack of all trades” or a solid network of local craftsmen capable of being
responsive.
- Look at
their current stock on their website.
Do they
offer properties of a similar standard to yours, i.e. 4 or 5 stars? If so, it
means they have a good database of clients whose requirements and budget may be
a good match for your apartment. It is important to know their established
database and if they already have local stock, they will surely have a healthy
database. Most of the time, if they rent directly to a customer in their
database, the fees are reduced for the owner.
- An internationally
oriented agency. Take care to ensure that the agency is multilingual and that
its online presence is also geared towards an international clientele. This way
you will increase the occupancy of your apartment tenfold because the school
holiday calendar is not the same depending on the country. Targeting an
international, or even global, clientele means ensuring you maximize rental
thanks to a broader target audience who often have a comfortable budget.
- Ensure a
strong online marketing presence. Ask where they advertise online and therefore
the costs associated with each portal.
- Revenue
management. Make sure the agency treats your property like a business, by first
putting a strategy in place based on your expectations and your personal use.
They must be proactive and monitor the market and therefore the price of your
property. Most rental companies will advise you to stage your property with
professional photography because they know what images sell.
- Some
rental companies will be happy to get involved in an off-plan purchase early in
the process, advising on the best layout changes to maximize rental income.