A new breed of developments are catering to these people by offering a range of accommodation in stunning locations. These are properties which appeal both to the lifestyle buyer, and the shrewd investor, often commanding significant rental revenues while benefiting from impressive levels of capital appreciation.
A good example of the snow development phenomenon is Secret Mountain in Sweden. This £75 million project is taking shape near the tranquil lakeside village of Klövsjö, which is regarded by the Swedes as one of the most beautiful in the country.
Secret Mountain is set among stunning scenery and offers visitors sledging, ice climbing and skiing in winter – runs vary from gentle to challenging; and hiking, watersports and golf in the summer – it is actually possible to tee off at midnight in June!
Phase two of Secret Mountain, consisting of 62 square-metre, two-bedroom apartments, with 22 square-metre balconies are currently on sale through agent Grosvenor Overseas, with prices starting at £149,000.
Roy Smith of Grosvenor Overseas says: “This is a rural idyll for second-home buyers seeking an away-from-it-all location where they can enjoy the peace, quiet and beauty of what Swedes call ‘the nature,’ as well as outdoor pursuits like hiking, riding, rock climbing and mountain biking. Investors are attracted by the predicted annual rise in Swedish property values of between eight and 12 per cent. Those wanting to secure a rental income can place their properties in Sweden with the holiday firms SkiStar and Neilson which offer holidays at Secret Mountain throughout the 18-week ski season.”
The apartments are expected to return £750 per week during the winter months, giving an income of £8,000 for the ski season.
Across the border in Finnish Lapland, there are two interesting developments on the market, both based on traditional construction methods incorporating a contemporary twist.
In Yllas, the highest ski resort north of the Arctic Circle, agent Above the Arctic is selling contemporary teepees in the grounds of the Snow Village, Finland’s equivalent of Sweden’s famous Ice Hotel.
The teepee is the traditional home for Lapland’s native Sami people, who honed the design while living a nomadic lifestyle-herding reindeer. But the 33 modern versions in Yllas are permanently sited and have a host of modern luxuries, including a private spa with sauna, internal stonewalls, underfloor heating, an outside hot tub and a master bedroom with panoramic views.
The teepees cost €180,000 (£141,000), and the developer is predicting a rental return of 7.9 per cent. Owners will be able to opt for a full leaseback contract or a deal allowing up to 26 weeks private use.
Above the Arctic is also selling a selection of wooden cabins made from the abundant local silver birch tree.
The Sapara development comprises one-, two- and three-bedroom log cabins in a forest setting, within walking distance of local amenities.
The cabins feature open plan kitchen and living areas, large mezzanines with separate WC, fitted kitchens including white goods, underfloor heating, open log fires, terraces, log stores and saunas.
Pre-arranged, non-status euro loans of up to 60 per cent are available, and the developer has an arrangement with a local letting agents. Prices range from £115,000 to £211,000 with completion dates ranging from Christmas 2008 to February 2009. Expected rental yield is in the region of five per cent.
Marcel Leuenberger of Above the Arctic says the Yllas area saw capital gains of around 20 per cent in the last year, but anticipates this will slow to around 10 per cent over the next year.
He says Yllas is likely to be a good investment destination, partly due to €20 million (£16m) of recent investment in the ski resort facilities, with much more to follow.
“More than 60 downhill slopes, 330 kilometres of cross country tracks and 200 kilometres of snowmobile tracks make this resort the place to be in winter. Restaurants and cafes are bustling with people, as is the local Santa’s village, which welcomes everybody almost all year round. But it’s not only winter which is great in Ylläs. The recently opened gondola runs all year round. Also during summer 2008 downhill biking tracks and a disc golf park have been opened. Over the next few years, investments of over €500 million (£392m) are planned in the area, partly by government, and part by private investors.”
The French Alps are a more familiar destination for British buyers, and a more mature property market.
Here, developers and agents have some very sophisticated product and finance deals available. Developer MGM has recently launched three residences de tourisme, in Les Menuires, Le Grand Bornand and Bourg St Maurice.
The residences in both Les Menuires and Le Grand Bornand will have four-star facilities, which include an indoor pool, fitness suite, gym, sauna, Jacuzzi and steam rooms, as well as a beauty centre with a variety of massages and treatments on offer. Le Coeur d’Or in Bourg St Maurice will feature a swimming pool, as well as a sporting centre, a cinema and conference rooms.
The developments will feature a wide variety of spacious one- to five-bedroom apartments, most of them benefitting from panoramic mountains views.
The France property market is known for its pioneering of the leaseback market, and these schemes are no exception, but unlike many others, here the developer itself runs the scheme, working closely with the group’s specialist hotel management company – La Compagnie de Gestion Hoteliere (CGH).
It was established in 2005 so that the MGM Group could provide a service embracing the planning, design, construction, sale, maintenance, letting and management of the properties it builds.
Owners of the apartments can exchange their weeks to stay in other MGM/CGH residences in various resorts including Tignes, Ste Foy en Tarentaise, La Rosiere, Plagne Soleil, Peisey-Vallandry, Les Saisies and Les Houches. Others planned or under construction are in Les Carroz, Samoens, Chamonix, Montgenevre and Serre Chevalier.
Prices in the three new developments range from €136,000 (£107,000) to € 597,000 (£468,000) depending on size and location. These prices exclude VAT, which is waived under the leaseback scheme.
“Increasingly owners regard their French Alps properties as year-round holiday homes, not just somewhere to go for winter sports,” says Nathalie Turchet, MGM’s UK sales manager. “With our improved leaseback schemes they can enjoy the French Alps for longer periods in the spring and autumn months as well.”
In neighbouring Switzerland, there are some much bigger and luxurious properties for sale.
In the famous ski resort of Klosters, agent Vivaldo is selling an impressive 400 square metre five/six-bedroom chalet in a traditional Alpine architectural style. Sitting on a plot of 1,200 square metres, the chalet features a seven-car garage, and a large garden, and is within walking distance of the town centre and all amenities. To secure all this, along with panoramic mountain views, you need to apply to the agent.
If you have £1.3 million to spare, the same agent is offering a 250 square-metre five bedroom chalet in the resort of Château-d’Oex. Built in 1983, the chalet is situated in a private street, and has a 180 degree panoramic mountain view. It is 15 minutes from Gstaad and 90 minutes from Geneva airport.
Patric Kuehn, managing director Vivaldo says that Switzerland, as well as offering some of the best ski resort son the world, is a reliable bet for investors, and that these large detached properties are likely to become increasingly scarce: “Mortgage interest rates remain low while currency and inflation rates are stable. The Swiss property market shows no sign of a real estate bubble or overheating. Furthermore the political trend is going towards residential condensation rather than easing zoning restrictions – this means that land becomes scarce and existing plots are used to build apartments rather than single family properties. In fact the sustainable demand for high quality properties in Switzerland by foreigners and Swiss property buyers alike fully consumes the limited supply of Swiss properties and land. A credit crunch is therefore unlikely in Switzerland. We believe that the Swiss mortgage market is not affected by the US sub-prime crisis.”
First published in December 2008.
Some information contained within this article may have changed since it was first published. Homes Overseas strongly advises you to seek current legal and financial advise from a qualified professional.
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