Buying Property in the French Alps in 2009
What is the position of a British buyer looking for Property for sale in the French Alps in 2009? Certainly the weak pound makes the French property purchase more expensive than in previous years. However, this can often be balanced out by buying from those who are more willing to negotiate on price. Furthermore, some British purchasers are reducing their exposure to the current exchange rate by taking out a French mortgage to fund their purchase; by doing so they are not required to convert the full amount from pounds to euros straight away.
Mortgages are themselves another factor making this the ideal time to buy property in the Alps. Interest rates around the world are at some of their lowest ever levels and lending by banks is being encouraged by national governments. Low mortgage rates and high rental occupancy in alpine resorts means it is once again possible to purchase a holiday home which covers its own costs – resorts like Chamonix, Morzine and St Gervais have excellent rental potential in both winter and summer seasons. It is increasingly possible to purchase resale apartments and chalets with existing rental agreements in place, which means it is possible to start making money almost from Day 1. For instance, you can currently buy a three-bed, two bathroom apartment in a piste-side residence in St Gervais, with open-air pool in summer, for 290,000€; the apartment has an excellent rentals history with bookings in place for the coming year. New-build leaseback schemes are also worth considering: for the investment purchaser they provide a guaranteed rental income of up to 4.2%, full property management and a VAT rebate on purchase (currently 19.6%). There are also a number of high quality leaseback apartments and chalets for sale in the resorts of Vallorcine (Chamonix), Flaine and Morillon.
Investment remains an important factor for many property buyers, especially with share prices deflated and savings rates reduced. Property prices in the French Alps have increased consistently over the last 10 to 20 years, driven by demand from discerning international buyers for alpine chalets and apartments. Prices this year are not expected to grow due to the economic downturn however prospects for continued long term capital growth remain excellent: strict building regulations in this part of the world ensure that supply remains restricted.
Why not look at the range of Ski Chalets in the French Alps today and see how you can benefit from the market at the moment.
For more information please visit http://www.ascendant-property.com
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