Your Alpine Ski Chalet for $94,000...Plus, Guaranteed Rental
Date: 11/20/2008 Author: Leigh Fergus
Look to the Alps for good-value chalets that pay you.
Thursday, Nov. 20, 2008
Read more about France in International Living Postcards—your daily escape
Dear International Living Reader,
Worried about the credit crunch and having to cut back on your spending? Don’t let it stop you taking vacations—I’ve found a way for you to enjoy winter vacations...and make them pay for themselves.
I’m talking about ski chalets in France—in the Alps and the Pyrenees. Not only is your dollar strong against the euro right now, but you can buy some chalets at a discount—and they’ll bring you a guaranteed annual return of up to 5.2%.
The way it works is that the French government—keen to improve its tourism sector and quality accommodation—will give you back the 19.6% VAT on certain furnished new-builds. A management company then leases the property out for you for nine to 11 years, renewable. And this company pays you rent every year—or quarter, depending on the contract. All you need to do is pay the local property tax. This scheme is called a French leaseback property, and it started in the 1980s.
Sound too good to be true? Not really—keep reading. It’s an easy, hassle-free way to own property in the most popular tourist destination in the world, and make it pay for itself. The rental income is guaranteed by the management company. I’ve found a few hot properties for you in the snow.
Le Recoin in Chamrousse is a resort for all skiing abilities, with everything you need—stores, restaurants, après-ski, and ski lifts—close to the cities of Grenoble (30 minutes away) and Lyon (one hour). Most places here are south-facing and all have a large balcony with underground parking with private lockups for your ski gear. The development I’m talking about is at 5,400 feet and has a large lounge with an open fireplace, a spa, heated pool, and sauna for all guests. Prices start at €75,000 ($94,000) for a studio and go up to €187,000 ($234,000) for two bedrooms, with 5% rental, and a couple of weeks of personal use.
Or how about a place even higher up? Residence Machu Pichu in Val Thorens is in the highest ski resort in Europe at 7,500 feet. This resort has a solid snow record with access to 370 miles of slopes for all levels, and is linked to three other major resorts. As snow is almost a sure-fire thing here, they’ll even refund 70% of your ski pass if there weren't enough! Prices here start at €110,000 ($138,000) with returns of 4%...and the apartments have panoramic views over the valley.
For skiing and lounging, there’s Balneo Aladin in Cauterets spa and ski resort in the Pyrenees, about 50 miles south of Pau. Properties here start at €86,000 ($107,650) with up to 5.2% return. After a day out on the slopes, residents can use the fitness center, spa, water therapy center, and pool. It would also make a great summer vacation base for hiking in the national park or for easy trips to the Atlantic and the Mediterranean, being halfway between the two.
You can get details about these properties from Imoinvest. This company can also help to get financing through a French bank for at least 70% with an interest rate of 5–6%.
Leigh Fergus
Europe Editor, International Living
Editor’s Note: Watch your inbox tomorrow to learn how to get your FREE copy of The French Leaseback Program—Hassle-Free Returns in the World’s No. 1 Tourist Destination. This report contains every detail you will need to purchase and profit from your leaseback property.
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