Uncover the potential of mountain view real estate. Learn expert tips for investing in tourist properties and avoid common investment pitfalls.

Investing in mountain property has become a tantalizing prospect for many, particularly in the realm of tourist residences. The question arises: is it truly profitable to invest in a mountain retreat? For those contemplating the acquisition of resort accommodations, a plethora of considerations must be meticulously navigated to avert potential pitfalls, such as unpaid rents and operator defaults. Industry professionals advocate for selecting a resort with a robust reputation, alongside ensuring proximity to essential amenities.

For the adventurous investor eager to dip their toes into the rental market at the base of the slopes, mountain tourist residences present an alluring opportunity. Many investors envision a picturesque apartment that not only promises lucrative returns but also serves as a personal sanctuary for holidays, all while benefiting from the rental management provided by on-site operators. However, to ensure that such an investment yields genuine benefits, adherence to a series of prudent recommendations is imperative.

The current market landscape is markedly healthier, with more resilient players and a significantly improved situation, allowing investors to approach resorts with renewed confidence—albeit with the caveat of considering crucial criteria. Returns on investment typically oscillate between 2% and 4% net, excluding taxes, with luxury and popular resorts often yielding even less. As such, the tourist residence may be perceived as a pleasurable acquisition for those seeking to capitalize on a quality asset while indulging in its use for several weeks each year.

A critical aspect of this investment strategy is the financial stability of the operator. In essence, the investor purchases an apartment within the residence, subsequently renting it under a commercial lease of no less than nine years to the operator. This arrangement allows for personal enjoyment of the property for a few weeks annually, while simultaneously reaping the benefits of rental income. Notably, the recoverability of VAT and the favorable taxation of furnished rentals—complete with deductions for charges and depreciation—can significantly mitigate the tax burden associated with rental income. It is advisable to focus on resorts with a strong reputation and snow insurance, ensuring easy access to ski slopes and shops. Furthermore, an active summer season can enhance the property’s appeal.

Investors are also encouraged to prioritize 4 or 5-star residences, provided their budget permits. Above all, the solvency of the operator remains paramount. Caution is warranted regarding returns that appear excessively optimistic, as such projections may prove unsustainable in the long run, compelling investors to accept rent reductions.

To qualify for VAT recovery, a commitment to renting the property for a minimum of twenty years is essential. Additionally, prospective investors must remain vigilant regarding energy performance diagnostics. Should one decide to embark on this venture, the price is a final consideration. For instance, recent reports indicate that new developments by MGM feature 3-room apartments in Flaine (Haute-Savoie) starting at €404,200, while 2-room apartments in La Plagne (Savoie) commence at €298,300. In Isère, specifically in Vaujany—linked to Alpe-d’Huez—the price per square meter exceeds €6,000, with rates in Alpe-d’Huez ranging from €8,500 to €10,000. These prices are often justified by favorable DPE classifications, as older properties classified as F and G should be avoided due to the impending necessity for costly renovations in compliance with new legal mandates.

While the allure of investing in mountain propertiesis undeniable, it is imperative for potential investors to approach this venture with a well-informed and cautious mindset, ensuring that all critical factors are thoroughly evaluated to maximize the likelihood of a successful investment.