Regional Information: Peak Profits for Investors

France’s passion for skiing is something we Brits have truly embraced over the last few decades. As we eagerly await the four months of snow available to us each year, many of us have now decided to buy property in the mountains. So where’s best to invest? Heavily pre-booked and lowcost flights to Geneva, Lyon and Grenoble have created easy access to the French Alps for all of us. It now seems that anyone wanting a week’s holiday in the snow has a fairly good chance of making it happen – but at what cost? French skiing delivers the world’s longest combined onpiste mileage of nearly 5,000 miles and some of the world’s best resorts, including Courchevel 1850, Val Thorens and Chamonix (arguably the world’s toughest terrain), with breathtaking scenery. However, this place of beauty, home to Mont Blanc, Europe’s largest peak, has one small problem: the irregularity of snowfall, any overseas buyer’s biggest concern. Booking your flights and accommodation early delivers a risk factor. That is unless you have your own ski chalet and the flexibility that comes with owning in France.

Tourist trap A major concern to any firsttime or overseas buyer, especially while attempting to purchase abroad, is not getting caught up in the tourist trap of paying over the odds. The linguistic barriers alone are enough to create uncertainty without even mentioning the legal, currency and maintenance aspects of owning a property abroad. Rule number one: always explore all your options and never sign on the dotted line unless you’re absolutely certain. Property in French ski resorts has been a booming overseas market for several years and prices are constantly on the rise. Chances are that any investment will see profits within a few years. Needless to say, if we could accurately predict the snow forecast for the foreseeable future, investing in ski resorts would be a much easier process. Global warming has had an extortionate effect on ski chalet prices over the last decade. The solution, adopted by many, seems to be ‘buy as high as you can afford’ or at least search for somewhere where there are golf courses, bike trails or other areas of interest for the remaining eight months of the year. “The expected annual snowfall is just as unpredictable to you and me as it is to potential buyers”, says the Office de Tourisme de Haute-Savoie. It is important to consider certain factors before you invest, especially if you are expecting a high-rental opportunity from your property.

It’s less practical for skiers to stay lower down the mountain due to the commute every morning and night which can be tedious, especially if weather conditions are poor. Overseas buyers generally fall into two very different categories. Firstly, the big investors, seeking property in only the finest and most luxurious resorts such as Courchevel 1850, Méribel, Val d’Isère, Les Arcs, Tignes and Chamonix. These buyers are aiming high and are generally not considering rental options. This market is more directed to second homeowners. Having said that, for those that do invest in them for rental opportunities, in any of these luxurious resorts, you will find haute gamme chalets with all the trimmings, usually marketed at hefty rental prices. Secondly, the fly-to-let market, where buyers invest in resorts with poorer accommodation or where snowfall is likely to be more unpredictable, but where high rental opportunities exist. These weaker’ resorts were once some of the most traditional French ski resorts. Resorts such as Megève and La Tania are facing a bleak future if experts are correct in their prediction that a third of European ski resorts will soon be snowless. The phenomenal Trois Vallées mountain range, delivering some of the best ski slopes worldwide, along with fresh mountain air and famous après-ski, never ceases to impress the fanatic skier or even the explorer among us. The key feature to the largest ski area in the world is diversity and as such, it is extremely attractive to future buyers. Composed of eight distinct deluxe resorts – Courchevel, la Tania, Méribel, Brides-les-Bains, Les Menuires, St-Martin-de- Belleville, Orelle, and Val Thorens – with more than 200 interconnected lifts and 375 miles of marked runs, the Trois Vallées accommodates everyone. It is also home to some of the most attractive chalets and apartment complexes in the world.

Foreign invasion An evolving trend in French ski resorts is the lack of French citizens and increasing number of foreigners. Twenty years ago, all French ski resorts were still run and occupied by the French. Nowadays, you will find that a few nationalities have bombarded certain resorts. A decade ago, the British started to invest in English-turning resorts such as Méribel, Méribel Village and Val d’Isère.You will even find a Pizza Express down the road! The beauty of the Alps is that it really does cater for everyone, of all ages. However, do research on up-and-coming developments and tourist life before you decide to invest in a certain resort. If we take a look at Courchevel 1850, for example, one of the most luxurious French resorts, we can observe the well-discussed ‘skier gossip’ of the ‘Russian invasion’. For the last five years, the Russians have really adopted Courchevel as their second home, turning what used to be a typical French ‘prestige’ resort, into a world of diamonds, fur coats and Cristaldrinking foreigners. In spite of this, Courchevel will always be a sound investment because its location, beauty and charm are simply some of the best. Val Thorens and the newer resort of Les Menuires are currently the experts’ destinations of choice. Val Thorens offer some of the best summer skiing in France and both resorts are known for their wild nightlife. These resorts tend to provide excellent entertainment for younger generations and are starting to attract more youthful buyers.

Never Never Land Chamonix offers a very challenging terrain. Many go there just for the breathtaking views as it is tucked in a steepwalled valley. However, Chamonix is also the Never Never Land of ‘if you fall, you die’ skiing. Needless to say, if you want to get the best out of the area – or stay alive – hiring a mountain guide is well advised. The resort itself has the reputation of being somewhat disjointed, forcing skiers to shuttle between mountains. However, Les Grands Montets, looming above the resort town of Argentière, offers terrain that is steep, long, and ungroomed— more than making up for any logistical headaches encountered down below. If you ski or board the face itself – Point de Vue or Pylônes are two options – you’ll probably rate the slopes fast rather than terrifying. But the access, riddled with cornices and crevasses, can be a world-class knee-knocker. If your pre-huck vertigo gets the better of you as you’re staring down the barrel of Les Grands Montets’ steep face, you can always take in the views from the observation deck. The panorama of the Mont Blanc massif and surrounding glaciers is worth the 120-step ascent and any potential loss of face with your friends and family. Host of the 1994 Winter Olympics, Val d’Isère is one of Europe’s premier resorts. Twinned with Tignes, Val d’Isère serves skiers and boarders well. Isolated from Les Trois Vallées, you don’t get the extensive piste selection. Nonetheless, these resorts still offer excellent snow, challenging pistes and the option of a good nightlife and restaurants. Many choose to invest in these resorts because they tend to be less crowded than others.

A booming market France’s ski resorts are spread over seven different mountain ranges, most notably the Alps, so it’s impossible to generalise too much. But considering the sheer weight of options, it’s always best to form a plan around your skill level and holiday checklist (be it après-ski, family-focused ski schools, proximity of slopes to chalets etc). There’s no doubt about it that overseas property continues to be a booming market, but what remains unclear is the market breakdown of short-term investors who flip for profit on capital gains, long-term investors who are aiming to achieve profitable rental yields and capital appreciation, second homeowners who have bought as an investment for the future, and everyone in between. The truth of the matter is that the property market in French ski resorts generally delivers a sound investment. However, do your research and make sure you get the correct legal aid and the best rates available.

• Andrew Hamilton, Group Marketing Manager, Baydonhill (Foreign exchange and French mortgages) Tel: 0207 594 0584 www.baydonhill.com

---