Investing in the mountains - What you need to know before buying

Marie

How do you choose a property in the mountains?

At the risk of discouraging some, land is scarce in the mountains, and construction costs are higher than in the plains. Obviously, if your budget isn't too high, you'll have to choose smaller, less well-known family resorts. In the larger resorts, there's no shortage of new developments, especially in tourist residences.

Alain

We're planning to rent out our future apartment and keep it for a few weeks a year. Is this profitable?

For some years now, due to capricious weather and a lack of snow in the lower-altitude resorts, the higher resorts have had the wind in their sails. If you're buying to rent out, this is obviously a factor to take into account. A high occupancy rate = a good rental yield! Today, the quality of your property is of paramount importance if you want to rent more easily. Gone are the studio cabins of the 80s... Families prefer to rent well-decorated apartments at the foot of the slopes.

Marie

How to boost rentals?

To get the most out of mountain rentals, it may be a good idea to entrust your property to a real estate agency. In any case, if you don't live on site, you're not going to come every weekend during the season to check in and out your tenants. If you entrust your property to an agency, you'll need to factor in a fee of between 15% and 20%. These days, to rent an apartment in a ski resort, you need to be able to offer additional services: laundry, cleaning, reception on arrival... It's an à la carte rental management system.

Alain

We've also heard about tourist residences. Are they attractive for tax purposes?

Censi-Bouvard is over for tourist residences.
However, since January 1, 2017, taxpayers domiciled in France who carry out renovation work on accommodation in tourist residences can benefit from a tax reduction on the purchase price of the property.benefit from an income tax reduction equal to 20% of the expenses paid, up to a limit of 22,000 euros per housing unit rehabilitated for the period 2017 and 2019. Dwellings must :

- Be at least 15 years old on the date the work is approved by the general meeting of co-owners;
- Be let for at least 5 years from the date of completion of the work. Rental must take place no later than two months after completion of the work.

The work must :

- improve the environmental performance of the property
- facilitate access for disabled people;
- or consist of restoration work.

In addition, the work must meet the following cumulative conditions:

- Be carried out by a single company;
- Be carried out on the entire condominium;
- Be completed by December 31 of the 2nd year following the year in which they were approved by the general meeting of co-owners.

Marie

Do commercial premises on the first floor of a residence have an impact on condominium charges?

Before taking the plunge, it's important to scrutinize the co-ownership regulations to see how charges are divided between commercial and residential premises. What's more, in the mountains, because of temperature variations, facades deteriorate more quickly (especially wooden facades), so you'll need to budget for repairs more often than you would if you were buying elsewhere. Heating costs will also need to be taken into account if you have a collective heating system. Something to think about...

Stéphanie SWIKLINSKI