Investing in a ski property is often motivated by the desire to enjoy quality time with family doing what you love. But at the end of the day it is also important to ensure the decisions you make will have a positive impact in every area of your life, including your finances. Today we will be investigating the benefits of investing in Swiss alpine property from a financial standpoint, and how this particular property type can bring you a source of long-term passive income.
Ski Property Investment
Ski property in Switzerland make a great form of investment for a variety of reasons, they have the capability of serving you personally for leisure use, while also acting as a source of income. Ski apartments and ski chalet investments are some of the most profitable sources of rental income. In 2005, 65% of people chose to rent properties in ski resorts, since then this has grown to around 90%. These statistics point towards an exceptionally high demand for rental properties in skiing locations.
Not only do ski properties provide grounds to generate rental income, but statistics have also shown a rapid increase in property market value over the past 20 years. In more recent years the acceleration of price has slowly marginally, however there is strong evidence for further increase in property value well into the next 10-15 years suggesting your investment will increase in asset value.
What Makes A Good Property Investment?
There are a multitude of factors which go into making a property a great candidate for investment. The ultimate property investment is low risk, with a massive reward potential, backed by years of knowledge in the industry and guidance on how demand will develop into the future. Below are some key points to look for when you are considering investing in property.
- Reliable Rental Income – Reliability is one of the most important factors when investing in anything, a predictable nature allows you to plan long into the future and mitigates the risks involved. There is strong evidence showing a high demand for ski properties; for both purchasing and renting, making a ski apartment or ski chalet investment very profitable. This consideration goes hand in hand with the following point.
- Efficient Management Company – To turn your property into a source of true passive income, you can use a rental management company, such as MrsMiggins. This allows you to fully remove yourself of any work related to the rental of your property. The success of this therefore requires the management company being as effective and efficient as possible in order to reap the maximum profit from your property.
- Low Void Periods – Void periods are the times where your property remains unoccupied. Of course, having an empty property means neither you, nor guests are enjoying the benefits of staying in the lodge or apartment, so this is effectively lost income. Ensuring an efficient rental management company is used will help keep void periods to a minimum using sufficient forward planning and guest acquisition strategies.
What Makes A Good Area to Invest In?
With so many different areas to invest in, which locations will generate the highest returns and keep the risks to a minimum? Ski resorts are lucky enough to meet nearly every one of the requirements of a good investment location. Take a look at our Buying Property In Switzerland guide for more information. The following points are great to consider when researching where you would like to invest.
- Easy Access – To create a great investment property you will need a constant supply of guests to rent your property. This is arranged by your rental management company, however getting the guests to your property must be easy, relying heavily on public transport options and access routes. This is taken care of fully when investing in ski properties as their locations are fully accessible by road, rail, and sometimes even air!
- Stable Currency – Having a stable currency is vital when it comes to investing large sums of money, such as those during property investment. Volatility can go one of two ways, which does of course mean you may benefit from it, however there is also a chance to lose money. This is why we would always recommend investing in areas where the currency is known to be as stable as possible, allowing you to plan well into the future with accuracy. Switzerland is known to be one of the most stable currencies in the world, so alpine properties and Swiss ski properties are a great place to start.
- Low Mortgage Rates – The less you spend, the more profit you will make. Countries and areas with lower mortgage rates allow you to generate more profit from your property. For example, Switzerland has one of the lowest mortgage rates in the developing world and banks will lend for ten years at fixed rates below 2%.
Final Things to Consider
Investing in property can be a life-changing decision, opening up a world of opportunities to the investor. With the correct experience, knowledge, and guidance the risks involved with purchasing an investment property can be lowered to a minimum, ensuring maximum returns for you. Buying a ski property is a fantastic chance to enter a market which is highly predictable and highly sought after, both of which make for an ideal investment.
For more information on investing in ski properties in some of the best ski resorts in Switzerland, get in touch with AlpLifestyle, and our friendly staff will be able to help advise and guide you towards properties that meet your wants and needs, and answer any questions you may have.
