Potential buyers are now choosing not to wait any longer to invest in a second home on the slopes, according to the latest market report from the ski specialist team at Erna Low Property.
Exposure to the currency risk has worked in favour of our clients who have seen a 15 to 20% in the drop of the Euro, that was nearly on a par with sterling 12 months ago which is encouraging for investing now, the firm says.
In the past 12 months, Erna Low Property has seen 60% of clients financing via a French mortgage, the other 40% are cash buyers. Transactions are up 30% year on year and the average property price purchase is around €350,000 for a two bedroom apartment, which is the most popular property with British buyers.
Lowest ever French mortgage interest rates are also acting as an incentive to buy now. Recently, Erna Low financed a few clients with mortgage of 3.65% capital and interest repayments fixed for 20 years with up to 85% loan to value. It says that this is more secured than buying a buy to let property in the UK, and gives access to the property for holiday and leisure time.
Erna Low’s property team has also seen a mixed trend in clients’ buying patterns since the last ski season. Proximity to Geneva Airport with only a one to two hour commute to their alpine property seems a popular British choice.
‘In my opinion, as long as the snow falls, the Alpine property market will remain strong and the snow is already here for holiday makers wishing to spend Christmas in the French Alps,’ said Francois Marchand, general manager at Erna Low Property.
‘There are many types of properties you can buy in France, depending on how often you wish to go there every year, and buying as classic freehold for you and your family might not suit you year on year, that’s where leaseback properties could be very attractive and remain a popular straightforward way to buy in France,’ he explained.
He also pointed out that although recent tax reforms by newly elected President Francois Hollande have shaken up the French property investors who are willing to optimise their tax declarations, but this does not affect the foreign market.
‘Buying a property in France should be a long term plan. It is essential to view your property investment as a place you will be returning to repeatedly over 10 years. France is the number one tourist destination in the world, has a stable economy, is part of the G8, has a steady capital growth and great interest rates from international banks,’ he explained.
Best buys include either leaseback or classic freehold properties. Les Portes du Soleil, Grand Massif and the Chamonix ski areas seem to be the favourite destinations for many of the firm’s clients, with properties in Chatel, Flaine and Chamonix offering a range of possibilities.
For those less bothered by airport commutes, the firm recently launched a selection of properties available in the centre of Les Deux Alpes and Les Arcs 1950 is another very popular area for British tourists, and increasingly for the French used to skiing in the Three Valleys and Espace Killy.
Espace Killy, which includes the resorts of Val d’Isere and Tignes remain extremely popular to the ski and snowboard fanatics for British and worldwide skiers. Erna Low Property has recently launched the sale of a leaseback development called Santa Terra, ski-in ski-out, in Tignes Brevieres, a very high end quality property development currently under construction
