Brits warm to a place in the snow but summer is the time to buy

Alpine destinations are increasing in popularity as buyers look for a ‘Place in the Snow’. The latest HiFX Monthly Global Property Hotspots Report reveals January to March is the busiest time for the ski chalet market with more buyers looking towards snow capped peaks in France, Austria, Canada and Italy. At the same time, interest in summer destinations such as Spain and Cyprus is waning. However HiFX is warning savvy buyers to wait until the summer when prices drop and there is a far greater choice of properties to choose from.

Based on HiFX enquires France has surpassed Spain this month as the most popular destination to buy abroad. Interest in snowy Austria has also increased by almost 30%. Brits are also flocking to Canada's year round mountain resorts with 6% of buyers looking to buy in the Rockies.

Mark Bodega, Director at foreign exchange specialists HiFX who help over 30,000 people buy property abroad each year comments “The French Alps are still top for Brits seeking a place in the snow with France accounting for 26% of all enquiries due to its close proximity and cheap airlines. Prices are higher in well established resorts such as Meribel, Courchevel and Chamonix but the rental yields also remain consistently high. However buyers should not rush into buying a winter property. It is important for buyers to check out homes in the summer months too and see what was covered up by the snow. Prices are also on average 5-10% cheaper in the summer compared to January to March”.

Frederic Chamouret, Senior Advisor at VEF, the French property experts, says: “Property prices in the alps have increased by 90% over the last four years as the whole area is a preserved natural park subject to strict French that limit the number of new constructions despite consistently growing demands.”

Investors are advised to look at the Southern Alps, which are still widely undiscovered by the British and Irish public who traditionally fly to Geneva. But the map is changing. With Grenoble Airport now offering more flights to the UK and Ireland, local property prices are also rapidly increasing. The area has definite character and feels very different to the ‘classic’ Northern Alps with smaller ski areas, which can be more family-friendly.

“The more canny investors look for smaller villages which are just ‘off the beaten track’ and have recently been connected to large ski areas by ski lifts as they offer good scope for growth while offering a more authentic lifestyle” says Bodega.

Antoine Le Corre from Venturus French Property reminds buyers “It is always important to consider snow reliability. Many resorts, usually at a lower altitude, have encountered real problems resulting in shorter seasons and therefore less revenue”.

HiFX – ‘top tips for buying your place in the snow’

Don’t dive in as soon as you return from your skiing holiday. The first three months of the year are the busiest time for the ski property market. Savvy buyers should search for their place in the snow during the summer when you can probably guarantee a lower price and a far greater choice of properties.

Look at the altitude of the resort to make sure that the investment is safe and reliable in the long term.

Make sure the resort has a good artificial snow making system.

Consider the currency risks associated with buying a property abroad – currency fluctuation can make a huge difference to the amount of money you pay and protecting yourself from these fluctuations should definitely be part of the planning process.

Currency risks are particularly important if you are buying a property off plan that may take up to two years to complete. By this time the price of your property could be very different if the currency has fluctuated against sterling and your budget may be blown.

Get information about the past few seasons in terms of snow conditions.

Find out how many weeks the resort is open in the winter and in the summer in order to establish a rental income plan.

Get the average occupation rate of the resort or the area for the past few years.

Be aware of floods avalanches and landslides: check the area surrounding a property for flooding. In a particularly heavy thaw, you will want to be sure you will not loose part of your garden or at worst your property to, to a landslide.