Snow place like home

Belinda Archer looks at the options for those dreaming of their own hideaway in the Alps

It’s that time of year again, when thoughts turn to skiing and the ultimate property dream—buying your own Alpine chalet, complete with crackling open fire, wood-panelled walls and breathtaking views. But where in the Alps should you buy? And what are the points to look for and the pitfalls to avoid?

One of the first and perhaps most obvious considerations is snow. Warmer temperatures cut the European ski season short last year. So to be sure of snow, it would seem that you now need to “aim high”.
“Resorts that guarantee snow throughout the season are getting higher and higher,” says Matthew Hodder-Williams, co-ordinator for the Alps at Knight Frank estate agents. “Figures for snow over the last five years show that there is less of a guarantee in the lower resorts. Those resorts offer better value—but for a good reason.”

A reliable altitude, according to the experts, is above 1,650-1,700 metres. High French resorts include Les Arcs, Val d’Isère, Tignes, Courchevel 1850 and Chamonix, while Zermatt and Saas Fee qualify in Switzerland. All are either over 1,650m or have lifts to very high altitudes. (Verbier is at 1,500m but swoops skiers up to 3,330m). Some, such as Saas Fee, are close to glaciers and therefore sure bets for snow.

Another consideration is year-round appeal. A location that offers not only excellent snow in the winter but also activities throughout the rest of the year, from climbing to mountain biking and hiking, might have the best investments.

You also need to think about the quality and type of skiing. How good is the range of runs? What’s the infrastructure like? Les Trois Vallées, providing access to a mighty 700km of piste stretching from the Courchevel valley through Meribel to Val Thorens, are good for the adventurous or experienced skier.

Then there’s the ski-in-ski-out factor: there’s a lot to be said for being based right on the slopes and not having to battle your way to the other side of the resort. And proximity to an airport counts, too: a long transfer to a resort is definitely not what you want if you’ve only got the weekend.

So how much is this fantasy ski chalet going to cost? Like any property price, the answer depends on the place. “Every resort balances snow-sureness with location, all-year-round availability and the X-factor of desirability,” says Hodder-Williams.

In some of the most popular and fashionable resorts, limited supply keeps property prices high. Nick Leach, head of business development for the UK and Ireland at leading French property developer and manager Pierre & Vacances, explains: “Courchevel 1850 is not exactly ‘good value’, but it is always a quick seller because real estate is hard to come by there. Meribel is also one of the more expensive resorts. Because it’s a protected area, it has very strict building regulations.”

At the other end of the spectrum are the less popular, less well known resorts that don’t boast the thumping nightlife of the bigger destinations but can offer excellent value and decent ski areas.
For example, Alpe d’Huez in the southern French Alps; Belle Plagne, which is linked into La Plagne; and La Tania, linked to Courchevel, all offer competitive rates.

Courchevel 1300 is a good compromise too, linked as it is to 1850 but not charging the jaw-droppingly high prices. A one-bed apartment in these resorts may be as little as €175,000 euros (about £122,000).

Amazingly, there are some relative bargains to be had in Switzerland, as well—provided you know where to look. In some cantons, restrictions on new developments and on sales to foreigners have been lifted, bringing more properties on to the market.
Sarah Dukan, international head consultant at Chesterton International estate agents, specialists in properties across France and Switzerland, has some specific recommendations. “The best deals at the moment for Swiss chalets are where there are no restrictions for foreigners to purchase,” she says.

“An example of this is Bluche near Crans Montana. There are views of the mountains, easy access to the ski domain of Crans and a telecabine close by. Another area is in Ovronnaz, a ski resort with year-round activities and a thermal spa,” she says.

Jeremy Rollason, director of the International Residential and Resorts Department at Savills, adds: “I would buy a chalet in the Four Valleys, Switzerland (Veysonnaz or Nendaz), where you can purchase a four/five-bed chalet for just under £1m. This is less than half the price of Verbier, a quarter of the price of Val d’Isère and a fifth of Courchevel.”

An alternative solution, to help realise that seemingly unaffordable dream, might be a fractional purchase or even a leaseback arrangement. The latter involves buying a property but leasing it back to the developers, who then manage its rental and guarantee income over a certain period. Owners can book a number of weeks a year, for which they get first refusal, but cannot access the property outside those agreed times. Buyers get the VAT on the property back—provided they hang on to it for at least nine years. The rental income is usually set at a slightly lower rate (typically four per cent) than if the owner managed the rental through a separate, private management firm.

“Leaseback works well for clients who only want to use the property three weeks a year,” says Leach.  “They don’t have to worry about upkeep and running costs, which are all paid for, or the business of finding tenants, or fluctuating tourist conditions. They can plan ahead and know that their rental income is guaranteed.”

Leaseback sales in France have increased among UK purchasers exponentially since Pierre & Vacances set up its London office four years ago. The concept is also becoming more common across other regions in the Alps, in various forms. Fractional ownership, on the other hand (essentially a posh term for timeshare) is proving harder to sell.

“I believe it will take time for it to be wholly accepted in the UK,” says Bertie Sanderson, director of Erna Low Property and an expert in Alpine areas.

“It does suit some people, though—particularly if there is a ‘cross resort’ programme where owners can swap weeks in one country or resort with another, thereby offering them a variety of destinations.”
Not one timeshare in the snow, then, but two.

Useful contacts

• Erna Low Property, 020 7590 1624, www.ernalowproperty.co.uk
• Knight Frank, 020 7629 8171, www.knightfrank.co.uk/ international
• Savills International, 020 7016 3740, www.savills.co.uk/abroad
• Pierre & Vacances, 0800 001 5551, www.pierre-vacances.co.uk
• Chesterton International, 020 7201 2070, www.chesterton-international.com