French Alpine property worth a look

Some of the best ski slopes in the world transform as the weather heats these up into luscious green fields popular with walkers. These slopes make the French Alpine property and the Alps a desirable year-round destination. Buy-to-lets are potentially profitable and with more companies offering property under the leaseback purchasing scheme, these can be a safe option as well.

The prestigious ski resort of Courchevel offers leaseback investment opportunities for those with bigger purses. Often described as the ‘playground of the rich and famous’, Courchevel is popular for those looking to combine a buy-to-let purchase with a yearly holiday on the slopes.

MGM is currently marketing a new apartment complex in the resort. The development, La Padisha, is set for completion in December 2008. It comprises 38 one-, two-, three- and four-bedroom apartments. Prices begin at 650,000 euros for a one-bedroom apartment, rising to 2,537,000 euros for a four-bedroom home.

French Alpine property from La Padisha will be purchased using Leaseback Partnership, a scheme based on the French government’s long-standing initiative to encourage investment in tourist areas and boost the country’s economy. Under the traditional leaseback scheme, purchasers buy a freehold property and then lease it back to an approved management company for a 9- or 11-year term. MGM, however, is offering a 20-year Leaseback Partnership.

Buyers investing in the new Courchevel development will become shareholders in the whole development when they buy a freehold property. They will then benefit from an annual income, which is a share of the total profit from rentals earned by the residence (minus the value of the weeks they decide to use the property themselves). A key advantage of this scheme over the traditional leaseback system is that rental income is not fixed - it can increase year on year as the sums received rise.

Richard Deans, sales consultant in MGM’s London office, comments that Leaseback Partnership is an innovative scheme which will have special appeal to UK buyers keen to maximise their investment but enjoy using it at them same time. The fact that it is being offered on properties in a residence tipped to become one of the finest in the Alps is an added attraction, he added.

Deans predicts that owners should expect to see returns of around four per cent per year within the first couple of years. Aside from this, features of the MGM development including a heated pool, jaccuzzi, sauna, gym and steam rooms. Investors can relax in style while the money drifts in.

If the leaseback system is not appealing, other companies offer similar but more flexible deals.

Pierre & Vacances Property Investments is currently selling the freehold of properties in their L’Aquila Residence complete with a P&V management contract. The buyer purchases the property and then informs P&V when it is vacant so that it can be let. There are no management responsibilities such as maintenance, finding residents and collecting unpaid rent, as P&V acts on behalf of the owner in the search and letting process.

L’Aquila is set in the heart of Val d’Isere, with access to a good variety of slopes and pistes. It comprises 34 renovated apartments, ranging from one to four bedrooms, and starting at 510,000 euros.

So perhaps now is the time to investigate the opportunities offered by buying French Alpine property?

Posted on: France

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French Alpine property worth a look

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