Investing in a ski property can be a great way to combine leisure and profitability.
The seasons in mountain resorts are diverse and ever-changing. After a dormant 2020/2021 season due to the Covid-19 pandemic, with ski lifts unable to operate, the desire to invest in mountain properties has come back. People are not only looking to enjoy the winter season but also seeking a cool retreat during the summer. Here are some tips for buying property in the mountains.
Dreaming of a family Christmas in a winter sports resort? Planning an active winter vacation with friends in the mountains? Looking for a second home to work remotely and enjoy the coolness of the summer? Why not consider buying property in the mountains? Here is a guide to investing in a ski apartment.
Investing in mountain real estate can be an excellent opportunity to build wealth and diversify your portfolio. However, purchasing an apartment or chalet in the mountains is a significant decision that should be made carefully. To make a successful investment in the mountains, it is essential to consider several factors that can influence the value and profitability.
Why buy property in the mountains?
After a snowless winter season in 2020/21 due to the closure of ski lifts, the winter of 2022 saw a significant increase in visitors, especially from the French market. This further strengthens the appeal of mountain properties. Investing in real estate in mountain resorts remains popular.
The main question to ask before investing in the mountains is regarding the objective of this real estate purchase: buying for personal enjoyment, buying solely for rental purposes, buying to cover expenses, buying for skiing, buying for summer hikes and winter skiing, acquiring a semi-primary residence to work remotely a few days a week or month, etc. There are numerous possibilities to help you better target your investment in the mountains.
By answering this initial question about the primary target of your project, you can determine the type of property to search for when buying in the mountains:
A second home for personal use only.
Pure investment without personal occupancy (e.g., in a tourist residence to ensure profitability).
A mixed investment, combining personal use and tourist rentals.
Buying a ski apartment: Location is key
In the mountains, just like anywhere else, the choice of location is crucial. Even if it’s a purchase based on your emotional attachment to an authentic village resort or a world-renowned high-altitude resort, it’s important to consider the location of your property.
Investing in the mountains: What altitude?
With the talk of global warming and climate change, it is advisable to gather information about the altitude of the property and whether the resort is adequately equipped with snowmaking machines to ensure ski-in/ski-out access, for example.
Mountain real estate development: Ski-in/ski-out?
Even if you appreciate the tranquillity of the mountains, it is essential to consider the value and potential resale price of the property. Therefore, it is advisable to prioritize ski-in/ski-out access to the desired apartment or chalet, or even consider a property located in the center of the resort. According to real estate professionals, ski-in/ski-out access can reduce negotiations and shorten the selling process, resulting in a 5% to 10% increase in value for the same type of property.