#3 WHY CHOOSE TO INVEST IN A NEW PROPERTY?

#3 NEW BUILD OR EXISTING PROPERTY ?

It is tempting to consider that older apartments or chalets in the mountains often have more charm, and often has a lower price point. However, this idyllic picture of older real estate can quickly present major disadvantages in terms of insulation, particularly thermal insulation. A black spot in mountain regions where the climate can be harsh, and which forces new buyers to devote an additional budget, sometimes very high, to renovate their property. Especially now with utility prices rising, an energy efficient home will save you money both in the short and long term.

On the other hand, if work is necessary, it is not uncommon for it to be very complicated to find local craftsmen to carry it out, particularly if the property purchased is very isolated in the mountains.

Also be careful with co-ownership and maintenance charges for your real estate investment in the mountains. In resorts, homes have to be heated a lot and some old properties can be a pit in terms of energy consumption. Especially since the ban on renting energy strainers, labels E, F and G from the DPE, will undoubtedly be extended to seasonal rentals.

At a time when thermal strainers are being criticized, it is essential to ensure that you benefit from the best standards in terms of sound and thermal insulation. The added value of new construction in terms of energy consumption is no longer debated to benefit from the latest environmental standards and therefore reduced energy bills. Investing in new properties in the mountains therefore presents less risk.

Added to this is also the financial aspect: notary fees in new buildings are 2% compared to 7% in old buildings.

You should know that with the scarcity of land, new developments in ski resorts will be increasingly rare and therefore more and more expensive. Investing now in a ski apartment means building up real estate assets that will increase in value in the long term.

#4 FISCAL ADVANTAGES,

VAT RECOVERY OR PINEL INVESTMENT

Today when purchasing a new property it is possible to recover the 20% VAT for owners who wish to rent out their property when they are not using it! The rental yield value for seasonal mountain properties is a real niche for owners, who can count on this income to reduce their annual charges effectively, and in particular through para-hotels or rental status. Non-Professional Furnished (LMNP).

Another possibility in terms of tax advantage, invest in the Pinel law.

The Pinel law is the tax system that allows French taxpayers to invest in new real estate and benefit from a tax reduction. The Pinel zones are divided into several categories and, from now on, certain mountain municipalities are among the towns eligible for this real estate tax exemption system. Investors can thus benefit from the tax advantages of the Pinel law in these ski resorts. The Pinel Law allows you to benefit from tax reductions when you buy a new unfurnished property (or in a future state of completion).

Several other conditions are required to benefit from tax exemption under the Pinel law:

• The accommodation must be rented for a minimum of 6 years after the property purchase

• The rental amount is capped

• Tenants must have income not exceeding a certain ceiling

• The accommodation must comply with the 2012 thermal regulations and must be rented unfurnished.

#5 SELECT THE RIGHT AGENCY

TO RENT YOUR PROPERTY

There are many agencies that offer their services to ensure the rental of your apartment, but how can you be sure to select the most efficient one?

- First of all, be sure to look for a structure that offers a complete solution from rental to management of your apartment and not just the simple search for vacationer tenants via online platforms.

It is important to ensure the seriousness of the agency that will manage your property to guarantee its sustainability. The agency must be able to maintain the apartment in impeccable condition and deal with urgent needs such as replacing a light bulb, bleeding a radiator, etc. To do this, some agencies have a “jack of all trades” or a solid network of local craftsmen capable of being responsive.

- Look at their current stock on their website.

Do they offer properties of a similar standard to yours, i.e. 4 or 5 stars? If so, it means they have a good database of clients whose requirements and budget may be a good match for your apartment. It is important to know their established database and if they already have local stock, they will surely have a healthy database. Most of the time, if they rent directly to a customer in their database, the fees are reduced for the owner.

- An internationally oriented agency. Take care to ensure that the agency is multilingual and that its online presence is also geared towards an international clientele. This way you will increase the occupancy of your apartment tenfold because the school holiday calendar is not the same depending on the country. Targeting an international, or even global, clientele means ensuring you maximize rental thanks to a broader target audience who often have a comfortable budget.

- Ensure a strong online marketing presence. Ask where they advertise online and therefore the costs associated with each portal.

- Revenue management. Make sure the agency treats your property like a business, by first putting a strategy in place based on your expectations and your personal use. They must be proactive and monitor the market and therefore the price of your property. Most rental companies will advise you to stage your property with professional photography because they know what images sell.

- Some rental companies will be happy to get involved in an off-plan purchase early in the process, advising on the best layout changes to maximize rental income.