Leave your money out in the cold

Overseas investors looking to Switzerland as a possible place in which to purchase property would be wise to turn their attention to the country's ski resorts where some lucrative opportunities are waiting to be found.

Switzerland has long been a favourite among savvy investors thanks to its crisp Alpine air and stunning scenery, not to mention the healthy returns generated as a result of steady market growth and low rates of taxation.
But while the whole of the country has been attracting investors from across Europe it is the mountainous areas that are now under the spotlight and according to Investors in Property Switzerland's best ski resorts have out performed the rest of its property market "by a long way" over the last few years.

When most property investors think of the Swiss Alps they think of exclusive and expensive ski resorts that are well above their budget. Switzerland has after all been the preferred ski destination of the British royal family and many of the world's rich and famous.

However there is varied development going on in the country and as new chalets and apartments spring up in some of the lesser known resorts prices are becoming much more affordable and the idea of owning a ski property in Switzerland is becoming a reality for many.

Indeed, the growing range of chalet-style accommodation available in the country is offering profitable opportunities for investors in resorts such as Les Collons, which Investors in Property describes as ‘the perfect resort for alpine skiers and very pleasant in summer too’.

According to the property specialist chalets in Les Collons, which is located at the far end of the popular Verbier ski area, can be bought at a ‘reasonable price’ compared to other resorts in Verbier which have seen prices rise significantly in recent years.

Simon Malster, a spokesperson for Investors in Property, said: "In the last three or fours years the better ski resorts have out-performed by a long way the general market, so the prices in the hotspots have increased more rapidly than they would in towns in the valley.

"If it is what we call one of the emerging resorts which is somewhere that is not a household name, then you find that they can buy a chalet at a very reasonable price and that is what they tend to go for."

He said Les Collons offers four-bedroomed chalets for around £400,000 to £450,000, pointing out: "This will be detached with a solid granite roof and nicely done, high quality. Everything in Switzerland is always high quality."
But while those looking to buy for investment purposes may be attracted by these up and coming resorts, many second home and holiday home buyers are still drawn towards established resorts such as Villars.

This is because, as well as being excellent ski resorts, they also offer plenty of facilities for non-skiers that appeal to those looking to spend long periods of time in their property or even live in them.

Malster explained: "Places like Villars are very much second home territory because Villars is only 20 minutes from Montreux the lake, an hour from Geneva airport, it's got a golf course, it's got schools - it is very much a place which people could feel at home in both winter and summer.
"That is one of the things that has fuelled the property market in Villars because it has been a stunning performer by Swiss standards in terms of price increases."

Unlike some other resorts Villars has almost no restrictions on the purchase of property by foreign investors, who, as well as buying property already built, can also purchase land and have chalets built to order.

Experts point out that since house price growth in Switzerland tends not to exceed inflation and that compared to many other European property hotspots homes are not cheap, an investment in Switzerland should be a long-term one.

David Hampshire author of Living and Working in Switzerland, told BuyAssociation: "You shouldn't expect to make a quick profit, but if you intend to live permanently or work in Switzerland it is an excellent place to buy. Homes are built to last and the workmanship is of a high standard."