European House Prices
Discussion
Hi All,
Obviously a very open question - but - does anyone have a view on what might happen to european house prices in the next few years? I'm thinking the alps so relatively contained housing stock. I can think of a couple of issues:
- the euro and its relationship with the gbp (we did see 1.5 Euro to the £ a few years ago)
- Actual value of houses, are they going to see a percentage of value wiped off due to market fluctuations and the recession?
I'm trying to gauge whether now is a good time or a bad time to be looking in the alps and have realised I know very little about the above!
Any help appreciated.
Obviously a very open question - but - does anyone have a view on what might happen to european house prices in the next few years? I'm thinking the alps so relatively contained housing stock. I can think of a couple of issues:
- the euro and its relationship with the gbp (we did see 1.5 Euro to the £ a few years ago)
- Actual value of houses, are they going to see a percentage of value wiped off due to market fluctuations and the recession?
I'm trying to gauge whether now is a good time or a bad time to be looking in the alps and have realised I know very little about the above!
Any help appreciated.
I bought 3 years ago, in the alps. I have been looking at prices in Estate agents windows and they haven't dropped.
If I was to sell today I think I would have made a small profit, but then I would not be able to afford to do 6 weeks skiing a year and 3 weeks in the summer.....
Also bear in mind that if you are not there all the time the weekly rental market is good for the winter. I take @18-20k€ per winter season on rentals after the agent has taken her whack, which includes me taking 6 weeks.....
What are you buying for, to use or to get capital appreciation? Factor in the rental potential and you could be on a winner whichever way the market goes!
If I was to sell today I think I would have made a small profit, but then I would not be able to afford to do 6 weeks skiing a year and 3 weeks in the summer.....
Also bear in mind that if you are not there all the time the weekly rental market is good for the winter. I take @18-20k€ per winter season on rentals after the agent has taken her whack, which includes me taking 6 weeks.....
What are you buying for, to use or to get capital appreciation? Factor in the rental potential and you could be on a winner whichever way the market goes!
OscarIndia said:
I bought 3 years ago, in the alps. I have been looking at prices in Estate agents windows and they haven't dropped.
If I was to sell today I think I would have made a small profit, but then I would not be able to afford to do 6 weeks skiing a year and 3 weeks in the summer.....
Also bear in mind that if you are not there all the time the weekly rental market is good for the winter. I take @18-20k€ per winter season on rentals after the agent has taken her whack, which includes me taking 6 weeks.....
What are you buying for, to use or to get capital appreciation? Factor in the rental potential and you could be on a winner whichever way the market goes!
I am looking to do something similar to your good self (I think you have the place in Les Gets?). I havent been focusing on the rental as yet. I am going to treat that as a bonus. I'm not too fussed about capital appreciation (although would like to remain similar to the UK if possible) I just dont want to buy now and then realise that due to Euro exchange rates I could have got 30% more house by waiting for a year or two.If I was to sell today I think I would have made a small profit, but then I would not be able to afford to do 6 weeks skiing a year and 3 weeks in the summer.....
Also bear in mind that if you are not there all the time the weekly rental market is good for the winter. I take @18-20k€ per winter season on rentals after the agent has taken her whack, which includes me taking 6 weeks.....
What are you buying for, to use or to get capital appreciation? Factor in the rental potential and you could be on a winner whichever way the market goes!
How much hassle is the renting by the way? Do you go through Century 21?
Can't decide which way to jump!
NorthDave said:
I am looking to do something similar to your good self (I think you have the place in Les Gets?). I havent been focusing on the rental as yet. I am going to treat that as a bonus. I'm not too fussed about capital appreciation (although would like to remain similar to the UK if possible) I just dont want to buy now and then realise that due to Euro exchange rates I could have got 30% more house by waiting for a year or two.
How much hassle is the renting by the way? Do you go through Century 21?
Can't decide which way to jump!
Yep that is me!How much hassle is the renting by the way? Do you go through Century 21?
Can't decide which way to jump!
I bought at 1.20 ish, I left a trade active with my broker to complete at the level I was happy with. He told me I was nuts.....until he rang back and told me the rate had blipped for 10 mins one day and I got my rate. That bought me a new boiler and a car!
The rates will always fluctuate, if you could predict by how much and when you would be very rich!
I rent with ACM as they are who I bought from, no hassle whatsoever that I didn't cause!
It is good to have a French agent on the ground as if you need anything they have the contacts and are willing to go that little extra for you. I can introduce you if you like.
I also have a man who pops in once in a while to check the chalet over, he will also arrange repairs or deliverys, and does the garden for me as well as anything else I want. He comes to Geneva to pick me up cheaper than a transfer!
PM me and I will give you my phone number.
OscarIndia said:
Yep that is me!
I bought at 1.20 ish, I left a trade active with my broker to complete at the level I was happy with. He told me I was nuts.....until he rang back and told me the rate had blipped for 10 mins one day and I got my rate. That bought me a new boiler and a car!
The rates will always fluctuate, if you could predict by how much and when you would be very rich!
I rent with ACM as they are who I bought from, no hassle whatsoever that I didn't cause!
It is good to have a French agent on the ground as if you need anything they have the contacts and are willing to go that little extra for you. I can introduce you if you like.
I also have a man who pops in once in a while to check the chalet over, he will also arrange repairs or deliverys, and does the garden for me as well as anything else I want. He comes to Geneva to pick me up cheaper than a transfer!
PM me and I will give you my phone number.
Much appreciated, PM on its way.I bought at 1.20 ish, I left a trade active with my broker to complete at the level I was happy with. He told me I was nuts.....until he rang back and told me the rate had blipped for 10 mins one day and I got my rate. That bought me a new boiler and a car!
The rates will always fluctuate, if you could predict by how much and when you would be very rich!
I rent with ACM as they are who I bought from, no hassle whatsoever that I didn't cause!
It is good to have a French agent on the ground as if you need anything they have the contacts and are willing to go that little extra for you. I can introduce you if you like.
I also have a man who pops in once in a while to check the chalet over, he will also arrange repairs or deliverys, and does the garden for me as well as anything else I want. He comes to Geneva to pick me up cheaper than a transfer!
PM me and I will give you my phone number.
Some resorts are very controlled markets...mate of mine has a chalet in one of the higher end ski resorts and prices have been pretty rock solid. One of his neighbours (another Brit) went bust and defaulted on the mortgage he had on the chalet which was 50% LTV. The bank sold the chalet via auction and only two people turned up who were both local estate agents....guess what it sold for what the bank was owed. Auction wasn't advertised (bad for business if you're an Estate Agent), Brit gets rogered, bank gets its money back and the Estate Agent makes a tidy turn when it sells the chalet on (after having given out various brown envelopes....including the auctioneer).
What I can tell you is that vacancy rates for rentals in higher end resorts are much higher than they were....someone I know owns a big standard 3 bed place in Verbier which has always been rented fully every year....about 30% of the season was empty this year. When I heard that I had a look on websites and there were definitely a lot more properties available than there would have been even two or three years ago. That said Switzerland is a stupidly expensive place for Brits to go skiing now, especially the likes of Verbier. Those reduced rental returns have to feed through to property prices.
What I can tell you is that vacancy rates for rentals in higher end resorts are much higher than they were....someone I know owns a big standard 3 bed place in Verbier which has always been rented fully every year....about 30% of the season was empty this year. When I heard that I had a look on websites and there were definitely a lot more properties available than there would have been even two or three years ago. That said Switzerland is a stupidly expensive place for Brits to go skiing now, especially the likes of Verbier. Those reduced rental returns have to feed through to property prices.
Janosh said:
Do you have a specific resort in mind?
I live in Chamonix and have a reasonable idea on which resorts would make for good investment / personal use, so feel free to ask..
That is the dilemma at the moment. I probably want to rent it out when not using it which I think limits me to a central location in a decent resort. This pushes the budget up as they are in demand. My ideal would be somewhere down the mountain but OscarIndia pointed out that this would make travel very difficult for changeover day - not a problem if living full time but annoying if you are only on a week or two.I live in Chamonix and have a reasonable idea on which resorts would make for good investment / personal use, so feel free to ask..
My initial thought was slightly up the valley from Evian so I had a handful of resorts to go at in Winter and some great biking and lake action in Summer. The lack of rental coupled with the travel may be a big issue though. I absolutely love visiting Saint Foy but I think it is too small to sustain more than a couple of weeks a year really. I could imagine cabin fever settling in after a while.
Lots to ponder! I need to chew it over for a little while and maybe do some touring this summer to see what is what.
Hmm, if you're looking in that direction, Samoens seems to be a popular choice at the moment, much cheaper than Les Gets and Morzine. Great for biking in the summer and linked to the Grand Massif in winter.
If you want weekly rental income, I suggest you prepare to spend a little more but be somewhere that's linked to a lift system.
Just my 2c's: Evian itself is pretty grim in the winter.
If you want weekly rental income, I suggest you prepare to spend a little more but be somewhere that's linked to a lift system.
Just my 2c's: Evian itself is pretty grim in the winter.
Janosh said:
Hmm, if you're looking in that direction, Samoens seems to be a popular choice at the moment, much cheaper than Les Gets and Morzine. Great for biking in the summer and linked to the Grand Massif in winter.
If you want weekly rental income, I suggest you prepare to spend a little more but be somewhere that's linked to a lift system.
Just my 2c's: Evian itself is pretty grim in the winter.
I suspect you are right. Skied in Samoens before though and didn't enjoy it - spent all week traversing across to Flaine which became tiresome by the end of the week.If you want weekly rental income, I suggest you prepare to spend a little more but be somewhere that's linked to a lift system.
Just my 2c's: Evian itself is pretty grim in the winter.
Morzine or Les Gets have got to be forerunners at the moment (can't afford Cham unfortunately!). Just got to work out if I am keen enough to take the plunge.
Chatel certainly used to be cheap....and it's part of the Portes du Soleil so massive ski area, skiing in Chatel itself is quite low but it's right next to Avoriaz and linked with lifts...it's a nice town, not too many bars when I was there but some very good restaurants. You can also drive to other ski resorts easily....for example you can drive to Verbier in about 90 mins.
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