Where to Ski And Snowboard -

Buying a property in the snow

13th September 2011, by David Watts

Ice Cool Ischgl

Buying a place in a ski resort is an ambition for lots of keen skiers and snowboarders. The last few years have been difficult times for the Alpine property market because of the economic problems. And for UK buyers it has been made even more difficult by the weak pound. But there are some bargains still to be had and who knows what the future of the pound is? Despite restrictions on new building in many parts of the Alps and on foreigners buying property in parts of Switzerland and Austria, there are still plenty of attractive new developments on offer, as well as resale properties.

Simon Malster, managing director of Investors in Property, has been selling property in the Alps for over 20 years. He says, ‘Obviously, the market has slowed down compared with a few years ago. But there is still some extremely attractive property available – especially in Switzerland and Austria. These countries have traditionally restricted sales to foreigners and so prices have not been forced up to the inflated levels they reached in some other countries. But now they are opening up sales to foreigners more and more. We have also been searching out properties in the Italian Dolomites, where the scenery is simply stunning.’

Switzerland

Over the last few years, Investors in Property has sold a lot of apartments in Veysonnaz (a small quiet resort in Switzerland with stunning views over the Rhône valley and a ski area linked to Verbier’s). It now has more apartments there, starting at just over SF620,000 for two bedrooms in a small development with sauna and hot tub.

Investors in Property also has properties in two other resorts linked to Verbier’s ski area – apartments right on the piste at La Tzoumaz (from SF433,000 for two bedrooms) and detached chalets in Les Collons with fabulous views (from SF675,000 for three bedrooms). And it has apartments in Wengen with panoramic views over the Lauterbrunnen valley (SF440,000 for one bedroom, from SF1,050,000 for two bedrooms). Apartments in Engelberg are being developed by the lift company just 200m from the gondola.

The resort wants them to be full as much of the year as possible, so two-thirds of them will have an obligation to allow them to be rented out, but owners will be able to use them themselves for up to four weeks a year. Prices run from SF500,000 for two bedrooms.

Austria

Investors in Property has been selling an increasing number of properties in Austria too. Until recently, foreigners were banned from buying in most of Austria, but now new rules mean that all the properties mentioned below are available to foreigners as long as they agree to make them available for renting when not using them personally – this also means that you save 20% VAT on the purchase price (the prices given below exclude the VAT).

Investors in Property has apartments right on the piste in Sölden just above the Gaislachkogl gondola station and by the new Zentrum Shuttle lift – a two bedroom place costs from 390,000 euros. In Kappl (five miles from Ischgl and with its own ski area – foreigners are still not allowed to buy in Ischgl itself) it has two hugely contrasting properties on offer. Ski-in/ski-out apartments are being created in a traditional old 4-star hotel (with lounge, bar, restaurant and wellness facilities); two bedrooms will cost from 345,000 euros. And Residence Ice Cool is being built from scratch in ultra-modern style with huge floor-to-ceiling windows and stunning views and wellness facilities including an indoor outdoor pool; these have been selling like hot cakes, and just three of the 12 apartments were still available when we went to press – costing from 795,000 euros for three bedrooms.

Investors in Property also has apartments on the edge of Bramberg at the foot of the local Wildkogel ski area (with 55km of pistes) and right next to a gondola that opened last season; they are also just three minutes’ drive from a gondola into the Kitzbühel ski area and within easy reach of many others such as Gerlos/Zell am Ziller and Kaprun (both around 30 minutes); prices for two bedrooms start at 338,000 euros.

Italy

In the beautiful Dolomites region of Italy, Investors in Property has just started selling apartments in Corvara (which is part of the huge Sella Ronda area); a two-bedroom place 200m from the lifts costs around 2 million euros (yes, you read it right!).

France

France remains a favourite place for British skiers and boarders to buy property. Joanna Yellowlees-Bound, CEO of Erna Low Property, says: ‘We are largely focusing on Arc 1950, which was built in the early to mid-2000s and is a traffic-free, ski-in/ski-out complete mini-resort with attractive buildings, outdoor pools and hot tubs, restaurants, bars, shops and ski school. Some of the original buyers find their circumstances have changed and now need to sell. Current prices are a bargain for purchasers, and UK sellers are still making a profit in £ terms because of the exchange rate change. We now have an office in Arc 1950 and currently have properties ranging from studios to four-bedroom duplexes.’

A two-bedroom apartment might cost around 300,000 euros if, like most, there is an arrangement for a few years that you can use it a certain number of weeks a year and it goes in a rental pool the rest of the time. Erna Low also has some new developments. These include one right by the gondola in Briançon (part of the Serre-Chevalier ski area) where a two-bedroom apartment costs from 159,000 euros with a guaranteed rental return of up to 4.5%, and a very smart looking 4-star development in Val Thorens (with pool, spa, sauna, steam and a restaurant managed by a two-Michelin-starred chef) with two-bedroom apartments for 277,000 euros.

What to look for when buying a home in the snow

• First, you need to decide whether you want somewhere just for the skiing or whether you want a place in a resort that is attractive in the summer as well. Many French resorts developed after the 1950s can be deadly dull in summer, whereas most of those featured here are attractive for summer as well as winter use.
• Second, if you want the place primarily for skiing and snowboarding, you will want reliable snow. And with global warming likely to continue, that means going for somewhere with access to high, snow-sure slopes and with good snowmaking.
• Third, if you intend to use the place frequently yourself, you will probably want somewhere within a couple of hours of an easily accessible airport.
• Fourth, make sure you understand the legal and taxation aspects – buying and running costs, all types of taxes and any resale restrictions. It is highly advisable to get professional advice on these.
• Fifth, make sure you understand any arrangements that you may be offered for ‘sale and leaseback’ or ‘guaranteed return’ from renting it out – these can vary enormously and may enable you to save money on the purchase price in some circumstances.
• Sixth, if you are intending to rent the property out yourself, don’t overestimate the income you will get from it.

For more information check out:

Investors in Property www.investorsinproperty.com

Erna Low Property www.ernalowproperty.co.uk

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• property
• erna low
• buying
• investors in property

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