Buyer's Guidebook 

There are different reasons and motivations for buying a property in the mountains. Knowing what they are, listing them and putting them in priority order will let you choose a resort and refine your search.

• To live and feel at home there – The environment is essential when buying a property to live in. Schools, workplaces, sports facilities… all of these elements affect your quality of life.

• For your free time – If you’re buying a secondary residence for winter sports purposes, you need to make sure you’re well informed about the resort (snow cover, season length, ski area quality, quality of non-skiing mountain activities, entertainment…).

• To build an inheritance, sell on for a higher price or prepare for your retirement – The choice of resort is essential. Concentrate on internationally renowned resorts (Example: Val Thorens in Les 3 Vallées), guaranteeing good snow cover throughout the winter and offering fantastic facilities. A dynamic resort with great marketing that gets itself talked about is a resort that evolves. Finally, you should prioritise a quality position in the resort that will always have high resale demand.

• To let out – Research the rental market and the resort’s economic developments, collect information on the type of clientele and what they expect from a property, carefully consider geographical location and proximity to activities… For further information on rental properties, see our “rental management guide”.

Before taking any steps with the property you wish to buy, it is a good idea to calculate your total available budget. You should estimate your budget as accurately as possible (purchase price + additional charges including agency fees, transfer tax, insurance and handling fees), if necessary with the help of a banking professional, before signing a sale and purchase agreement. Your budget will comprise two parts, your deposit, and the various bank loans to which you have access.

• Deposit – this will be money that you can raise personally to invest in your property project. It may be from savings, investments, money set aside or from family help.

• Monthly repayment capacity – simply divide your net monthly income by 3, as the maximum debt rate is 33%. Then refine this calculation to reflect your lifestyle. Your remaining monthly budget (once you’ve allowed for fixed charges, any existing loan repayments and the monthly property loan payment) should be enough to cover your day-to-day spending. Don’t hesitate to ask for a number of simulations showing different interest rates and loan tenures. These two variables can affect your purchasing ability.

Using an agency as an intermediary

Choose an estate agency in the resort with excellent knowledge of the local property market. They will be able to accurately inform you about market prices and the types of properties on the books.

The agency will also accompany you through the sales contract and conveyancing process.

Note that vendors often employ agencies to put their properties on the market, particularly in ski resorts where owners of secondary residences rarely live on site.

Private vendor to private buyer

Transactions between private vendors and private buyers are one option. This can be a more economical solution because you don’t have to pay agency fees (total commission – around 7% in Val Thorens).

However, you should be aware that this takes time and requires availability of both parties. What’s more, vendors are not objective, they tend to overestimate a property’s value and underestimate any problems it might have. As a result: you risk having the wool pulled over your eyes in viewings and wasting precious time on pointless appointments.

In any case, it is essential to view the property and it can be a good idea to view it at different times of the year.

There is financial assistance available for primary residences in the form of tax relief or tax credit or if you are committed to a 9-year lease. See the list of benefits on this site www.anah.fr or at the local town hall.

If the property you wish to buy requires renovation work and you plan to let it out, you may be eligible for financial assistance from the town of Saint Martin de Belleville and the ski lift companies (SETAM for Val Thorens). Said assistance is calculated based on your apartment’s surface area in square metres (6,000€ for the first 20m² and 150€ for every addition m²). Renovating your property can lead to more profitable rents, local council categorisation and being awarded the Belleville Vallée quality label (invaluable for this lettings market).

To receive this financial assistance, you must meet all the specifications and let your property for a minimum of 10 weeks per year via an estate agency for a period of 9 years.

In the event that the property is sold or anything else changes, you can exit the system by paying back the amounts awarded pro rata.

For further information on this renovation programme, visit www.renovationlesmenuiresvalthorens.com.

An initial viewing is a chance to evaluate the surroundings, local area and any possible problems. Be equally vigilant about the condition of shared living spaces, facades, roofing and exteriors. You should also pay attention to the condition of ceilings, walls and windows.

Find out what type of heating the property has (make of equipment and annual cost), the type of hot water system, the total sum of management charges and when the property will be available.

If you like the property, you will need to have a second detailed viewing. Look closely at all of the equipment, checking for any signs of dampness, check the condition of the cellar and ski lockers and, should you wish to, take a professional with you who will be able to survey the property’s overall condition. All of these steps will prepare you to accurately assess any repair, decoration or building work required.

So you don’t lose a property, it is sometimes necessary to make an offer in writing. This indicates the price that you are prepared to pay for the property and how long that offer stands (e.g. eight days).

Note: you are advised to take the following precautions (making such an offer commits you to the purchase should it be accepted by the vendor).

• State that, if the vendor does not accept the offer within the specified validity period, it will become null and void.

• Ask that the vendor respond to the offer in writing by recorded delivery.

• Indicate that the sale will only be considered legal when the sale and purchase agreement is signed subject to conditional clauses.

It is possible to negotiate within this written offer. If the asking price seems higher than the market average, make a counter offer that the vendor can either accept or refuse.

Before committing yourself to a loan, there are some rules you need to know to help you make the right decision. There are multiple options available and the best financing sometimes comes from combining several of these.

Commercial and privately owned property loans are available to everyone, with no regulatory conditions. They allow you to finance your purchase: buying a primary or secondary residence (new or old), buying a buy-to-let property, carrying out building work of any kind. They are also very flexible. Subject to conditions and depending on the loan in question, they allow you to: extend or shorten the loan tenure, defer capital repayment for a pre-determined number of instalments, fix monthly repayment amounts as equated instalments, defer capital repayment during construction or while on “VEFA” off-plan contracts, or to create a “step-up loan”, which offers varying equated monthly instalments spread over the loan's tenure.

You have to choose between a fixed or variable interest rate for your property loan.

The rate fixed at the time you take out the loan is guaranteed throughout the loan tenure. The monthly payment amount and the maturity date are fixed when the loan is taken out.

Variable interest rate loans are often cheaper at the beginning of the loan period (around 1.2%), and risk can be limited (using a cap), the choice depends on what interest rates are predicted to do (always difficult to forecast) and the amount of risk that you are prepared to take.

To help you make this decision, banks are required to supply clients with precise definitions of the chosen index and how it is reviewed, as well as several index variation simulations demonstrating the impact on the total sum and/or repayment period (and thus the cost of the loan). These loans can benefit from the ability to change to a fixed rate at any time and, when capped, having a guaranteed maximum and minimum rate, limiting interest rate fluctuation.

Adapted for lettings, this package combines a loan from which interest can be deducted as property revenue, and a life insurance policy (which guarantees the loan), taken out for identical periods. At the end of the loan period, the capital is repaid from savings made during its tenure.

Even if you have access to sufficient liquid assets not to require a loan, some financial and taxation packages will allow you to combine investment of your liquid assets and make valuable use of credit.

For further information, contact your bank. 

Handing over the keys takes place at the notary’s or vendor’s office when the deed of sale is signed. That’s when you will be given proof of property ownership, which is very useful for administrative tasks (setting up gas, electricity, telephone, fire insurance…). If you don’t receive it, then you need to take out Multirisk Habitation Insurance as soon as possible if you are going to occupy the property, or Non-Occupation Property Insurance if you are going to let it out. You will need to provide your insurer with your property’s exact details and characteristics. 

4. Buy an apartment in Val Thorens with Ma Clé IMMO

Ma Clé IMMO is honoured to be your partner in the property-buying process and is here to help and guide you through your choices. Simplicity and professionalism are the watchwords of our team’s approach to a clientele that is, quite rightly, demanding more. Our advisors are one of our agency’s major assets thanks to their availability, reactivity and expertise.

Our high-altitude resorts and the 3 Vallées ski area’s global reputation may be solid guarantees, but purchasing a property in the mountains, either for your own use, as a financial asset or both, is an investment that requires specific expertise.

Beyond falling in love with a property and working out its profitability, our knowledge of the market and the quality of different sites and buildings is an invaluable time-saver for you.

According to your criteria, the Ma Clé IMMO estate agency will present you with a selection of properties that meet your requirements, and advise and accompany you throughout the process; from the first step to putting your final signature on the deed of sale.