Make it pay! Free Skiing Holidays with a Second Home in France and a French Mortgage.
You can’t fool us, you must admit that the excitement of discovering a new ski resort every year loses its appeal soon after the kids arrive! We’ve all been there, dragging what seems like the entire contents of your loft onto the airport bus, and off again; up to Departures, to find you’ve left the ski poles/Trunki/car seat in the car. And don’t ignore the frustration you feel when you realise you need to book next year’s holiday before you’ve even had a chance to enjoy this one just to secure the accommodation in the school holidays. Suddenly, the thought of having your own base in the Alps, where you can store your kit all year round and use it when you want it, starts to sound appealing. Especially, since you can even make your holiday home pay for itself (plus a few additional holidays on the side)! The low French Mortgage rates, high loan-to-value and interest-only products coupled with the impressive rental yields that can be made in the popular resorts and that prime real estate in the French Alps is predicted to increase in value, mean that the economics of owning your own place soon start to work.
To demonstrate how obtainable owning your own French property is with the French mortgage rates and products currently available we picked a four-bedroom chalet in Les Gets that is currently available to buy for €610,000. Borrowing at 75% loan-to-value at 2.5% on an Interest-only basis over 14 years would give you a monthly French mortgage payment of €953*. When you consider that chalets in the likes of Les Gets, Morzine, Meribel or Tignes will easily rent out for over €3,000 a week over the winter and over €1,000 in the summer, it becomes clear that your holiday home can quickly become a nice little earner, and that’s ignoring any capital increase that you may well benefit from if you decide to sell it in years to come. Yes, there are costs involved with maintaining a second home and managing the rentals, but even taking all of those into consideration, you would only have to rent the property out for 10 weeks a year to cover all the costs including the mortgage payments! (The average ski season in France is 19 weeks long, leaving you plenty of time to enjoy the snow yourself).
The example above was based on a high loan-to-value; for those of you lucky enough to be receiving a bonus this year, there are even better rates available (from 1.5% for non-residents) if you can put down a larger personal contribution. Now, all you need to do is decide where! (And be quick, as there is still chance you could get something before Christmas!)
For more information on French mortgages contact International Private Finance on 020 7484 4600.
*The mortgage rate and LTV is dependent on an individual’s personal and financial circumstances. Please contact an international mortgage broker for a thorough assessment of your situation and a recommendation as to which rates and products you would be eligible for.