Has anybody got any positives and negatives on Alpine properties. I realise they have high management fees, but it seems that the return should cover those and the repayments. Comments appreciated.[blush2]
i was wondering the same thing. ive been looking at prices and they seem reasonable. would probably be a little negative geared, but probably only to the extent of a winter holiday cost each year.
any advice on this area would be appreciated
I’ve thought of alpine apartments, but I had one major consideration:
Global warming.
Sounds a little dire, but hear me out. It is a well proven scientific fact that we are changing our climate and that change is an increase in average temperature. That will lead to reduced snow yields and shorter snow seasons without a doubt. Of course this effect may have no major effect for another 30 years say, or it may be 10 years. These things are hard to know. But what will it mean to the market pschology? Already I’m influenced to not buy alpine… But! there are summertime activities up in the alps (mountain bikes, hiking, 4wd, etc…) so if I was to look for an alpine apartment I’d be looking in areas that support the summertime activities because they will be sure to become more popular [biggrin]
Of course, maybe rents will go up (and thus yield) during winter because of the reduced ski season = less supply of ski time = more demand on the use of those apartments.
Those are my thoughts anyway.
Others no doubt have their own (or at least I hope so).
Any summer activities will fizzle out if ski seasons shorten. It is only the winter income that pays for anyone to be operating in summer. Ski businesses are scratching to make decent returns in Australia now and in Victoria at least it is State Government policy that skiing will be much less viable by 2020, only 15 years hence.
Look at prices for winter holidays now and you will see that already North America and other overseas destinations are better value because they cost the same or little more, but have far better snow. If the local industry was to increase prices by much at all it will go belly up.
Don’t be fooled by the hype surrounding alpine ownership changes and big money coming in to increase development. The Alps have a history of being the subject of “Pump-and-Dump” exercises where property is built and heavily marketed to new investors. The developers then move out and the new buyers are left with overpriced assets which take years to make any returns.
There have been a string of “good” seasons lately which has created a bit of an alpine bubble. Climte change and possible interest rate hikes make it very risky.
Say what you want about Alpine propeties, but I think they’re a great investment. Have a look at this one I purchased in ’98 for $325 000 that I’ve recently put up for sale.
http://www.christiesgreatestates.com/greatest_estates/ge_wildcat_ridge.htm
Gotta love a booming property market…[biggrin]
Sure!
G7, you crack me up.
Landt.
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