Insurance News Archive
More air routes to French ski resorts 'to boost rental income'
The expansion of budget airlines has seen more routes open up to French ski resorts all-year round, which may see rental incomes increase, according to one property expert.
Ski holidays remain highly popular and provide a winter income for investors who see a dip in rents from their properties in sunnier climes around this time.
But they may begin to see the benefits from ski properties all year-round as airlines have opened up new routes to these areas during the summer as well.
"Access to ski resorts has always been reasonably good during ski season," said Trisha Mason, the managing director of French property specialists VEF.
"However, the growth of airline routes has meant that many ski areas are now easily accessible throughout the year. This gives the investor a greater chance for summer rental income as well as ski season income."
She added that leaseback property is proving popular due to the guaranteed rental income investors can get, which can amount to four or five per cent of the property price a year.
Leaseback deals are when the buyer leases the property back to a management company who looks after it, sorts out the tenants themselves and pays a portion of the rent to the owner, which reduces the involvement of the investor in the renting process.
Ms Mason also added that ski resorts were often only purchased in the winter months when the idea occurs to investors, which could mean there would be little competition for buyers who act to secure ski property in the summer months.
26 Jul 2007
