Now is the time to buy in the French Alps

Here we look at some of the reasons why now is the ideal time to start your alpine property search with Ascendant.

The best selection of properties
There has never been a better selection of chalets and apartments for sale in the French Alps. In previous years it was almost impossible to find affordable properties on the market near the pistes or ski lifts; nowadays there are many more possibilities although the best examples still sell quickly when priced correctly.

Price negotiation
In recent years, a large number of British residents have purchased permanent or second homes in Alpine resorts such as Chamonix, Morzine, Les Gets and Samoens. Depending on the date of purchase, many of these people will have seen huge growth in the sterling value of their property, simply because of the change in exchange rates. For example, in 2007, a British buyer purchasing a 600,000 EUR chalet would have spent around GBP 400,000. Today, converting that 600,000 EUR back generates over GBP 540,000. Some of our British vendors will benefit from this phenomenon and are therefore more open to negotiation on price.

Cheaper mortgages
Mortgage rates have dropped dramatically and there are some very attractive rates currently available with our French finance partners. 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.

Rentals potential
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, we are currently selling a three-bed, two bathroom apartment in St Gervais for 290,000 euros; 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%).

Long term potential
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.