The French Alps in the Eastern provinces of Savoie and Haute Savoie are among the most popular ski destinations in Europe. Every year hundreds of thousands of ski tourists descend on the French alpine ski resorts that border Switzerland and Italy to enjoy the snow, sun and to marvel at the fabulous French scenery.
Visitors to the French Alps tend to hire accommodation to suit their purposes. While some tourists select ski resort hotels for their holidays, others decide to rent apartments and ski chalets close to the ski lifts.
Ski-in / ski-out accommodation is preferred by many. This allows skiers to ski up to the front door of the French property they have hired, avoiding the need to take their skis off and trudge through the snow and ice to get back to where they are staying.
I have to admit here that I am a fan of the French Alps ski scene. In the past few years I have visited several ski resorts in France. My favourites are Meribel, which is a very picturesque village with wooden ski chalets overlooking a spectacular alpine valley, and Courchevel 1850 - one of the most prestigious ski resorts in the world.
A lot of people I have met on the French ski slopes have talked to me about their desire to buy French property in one of the ski resorts. For most it is only a pipe dream - they see the property prices in the windows of real estate agents in the ski resorts and immediately declare that they cannot afford to buy property there.
Yet, if they were to dig a little deeper; if they researched the French property market they would find that a ski property is in truth affordable, and would make for a very good property investment indeed.
Property investing in the French ski resorts
Ski resorts in France, by their very nature, are big tourist draws. Many ski resorts - like Meribel, Courchevel and Val d Isere - offer summer alpine activities as well as winter sports, making them all-year-round holiday destinations. It is here where the vast potential for investment in French apartments and chalets in the Alps starts to become apparent, as it is possible (with the right type of marketing behind you) to rent out French property under your ownership to tourists for the entire year. Imagine the amount of rental income you could receive from such a property investment!
Sceptics of course will point out that achieving a high level of tenant occupation is rather difficult. The majority of French property owners simply do not have the resources to market their property efficiently and obtain the necessary bookings.
In answer, there is another way! Buy French leaseback property: In the 1970s the French government introduced an investment concept in France. Called the French leaseback scheme it encouraged overseas property investors to buy French property in France's popular tourist areas and then lease the property back to a tourist management company for a period of several years. The tourist management company would take on the responsibility of renting the property out and obtaining rental bookings for the property. As part of the lease agreement the management company would pay the French property owner a guaranteed percentage of the rental income received.
Today, french property leasebacks continue to grow in popularity. They offer property investors the opportunity to buy freehold property in French ski resorts, and receive a guaranteed income from the property for the life of the lease, which is normally between 8 - 11 years. Property owners can also elect to have built into the lease plan a clause that allows them to use the ski property themselves for anywhere between 2 and 6 weeks of the year. It is basically like having a holiday home in France that you can use, but having the security of a world class tourist management company that pays you for the use of the property for the rest of the year. It's a perfect property investment!
French leaseback rental yields
As I've mentioned, rental income from French property leaseback acquisitions are guaranteed by the management company, courtesy of the French government's involvement. Rental yields are generally between 2% and 5% depending on the type of rental lease program chosen, and subject to how many weeks of personal use are required from the ski property.
Some of the best leaseback property purchase opportunities in the French Alps at the moment are in the Three Valleys area (Trois Vallees).The Trois Vallees is a massive ski domain that offers hundreds of kilometres of ski runs and cross country skiing tracks. It is possible to ski between the different winter resorts in the Three Valleys - something that makes the area very popular with tourists who want to try out the different ski runs in other alpine villages. If you are keen on the idea of trekking through the snow to other alpine resorts it is always best to take a map of the french alps and a compass with you. Getting lost in the snow if a blizzard sweeps in across the French alps is not a pleasant experience!
Top ski investment spots in the Three Valleys include Meribel Mottaret
Meribel is a very beautiful place to enjoy a winter break and to own ski property. One-bed ski apartments on a French leaseback deal are available from around 380,000 euros. Currently, at les Crets ski residence there is a west-facing 6th floor apartment of 54m2 living space + 8.3m2 balcony. It sleeps 5-7 people and is priced at 382,255 euros excluding VAT without furniture or parking. With furniture and parking the price is 402,257 euros excluding VAT. Rental income of up to 19,000 euros is guaranteed as part of the French leaseback scheme.
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Les Menuires
Situated between St Martin de Belleville and Val Thorens the ski resort of Les Menuires is a quiet family-oriented alpine village. It offers some superb ski runs and plenty of childrens activities to keep the kids happy. Ski property in Les Menuires is reasonably priced. Prices for ski apartments at the Residence Aconit in the heart of the village start at 225,000 euros. Rental yields are guaranteed at up to 4%.
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Courchevel 1850
Looking for a French leaseback investment in a luxury ski location? The Chalets du Forum lease back residence could be your dream come true. In the heart of one of the most prestigious ski resorts in Europe the Chalets du Forum offers luxury ski apartments in chalet-style wood and stone buildings. Prices for the luxury lease back apartments start at around 500,000 euros. Rental income is guaranteed at 4%.
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Buying ski property in the French Alps is a good investment decision. If you play your cards right with your property loan or mortgage you could be enjoying positive cash flow from your French property leaseback investments for many years to come.
Written by
Howard Farmer
Leaseback Property Guides
French Leasebacks