Buying a ski flat: is it profitable?

Like a secondary residence, acquiring a property in a high mountain resort can lead to many additional and maintenance costs. On average, real estate experts estimate these costs at 1% of the property's price. Therefore, renting out your ski apartment turns out to be the best solution to make your investment profitable. However, all properties are different, and the geographic location is one of the factors affecting profitability, although there are others. Let’s explain further...

Choosing the right resort

Choosing the right resort to invest in is crucial. To optimize your investment, it’s important to choose a highly sought-after location, an attractive place capable of drawing a qualified audience each year. In France, a few high mountain resorts stand out for their prestigious clientele, which increases year by year. According to tourism professionals, the top-ranked resorts are Courchevel and Méribel, which attract between 1.5 and 2 million tourists annually.

Several factors must be considered when selecting the best ski resort for your real estate investment. One of the most important is undoubtedly the snow coverage, which must be optimal. Unsurprisingly, the highest resorts in the Alps are also the most popular for real estate purchases aimed at profitability.

Generating capital gains

Many real estate professionals agree that to anticipate a significant capital gain in the event of resale, it is important to pay attention to the location of your purchase. At the foot of the slopes, a top-tier real estate market is available to you in the most prestigious resorts, ranging from high-end apartments to charming chalets, all offering "ski-in, ski-out" access.

Moreover, ecology plays an increasingly important role in our society. Carrying out energy-efficient renovations would result in an added value to your initial investment. It’s important to note that while capital gains are taxable, certain situations offer tax exemptions (such as long-term properties under specific conditions).

Rental yield

When considering a real estate investment in a resort, potential rental yield is naturally one of the most important selection criteria. To ensure you’re investing in the ideal ski resort, research the activities offered both in winter and summer. This will help you to make your investment more profitable by renting it out all year round. Look into the available sporting and cultural activities in summer, as well as hikes, trails, and places to visit — all of which add significant value to your property. Lastly, the rental yield of your property will be maximized if it offers high-end amenities (pool, spa, relaxation and comfort facilities for vacationers…).

Tax benefits

To obtain attractive tax benefits, several options are available. You can acquire a new property and benefit from the Pinel scheme if you plan to rent it out. These tax advantages will help you acquire a property in a ski resort more easily, and also make your investment profitable faster.