While owning a second home allows you to enjoy many moments throughout the year as desired, it also involves assuming recurring costs such as charges, taxes, works, etc. To make a second home profitable, renting it out often remains the most considered option, provided certain conditions are met to optimize its profitability. Thomas Mudry, co-manager of ACM Immobilier agency, informs us about the rental profitability of a mountain second home.
What are the advantages of a mountain lodging?
Purchasing a second home is primarily a pleasure purchase. It's the opportunity to have a foothold all year round, for vacations or weekends with family or friends, in summer as well as in winter. “The advantage of the mountain is that it offers activities all year round for all ages,” comments Thomas Mudry.
Investing in a mountain lodging is also a sustainable investment: “We talk about the famous investment in stone. It’s about building an estate for your retirement, enjoying it, and then passing it on to your children. It’s also entirely conceivable to sell it later with a possible capital gain. Finally, one can consider benefiting from certain profitability by choosing to offer the property for seasonal rental.”
Solutions to make your second home profitable
To make the investment profitable and thus relieve finances, seasonal rental remains the solution. “However, be aware that rental prices have not followed those of transactions. Even if profitability rates do not allow for self-financing, it helps to pay for charges, property tax, or co-ownership charges if any. The surplus can be appreciable for the owner.”
To calculate the profitability of a lodging, it is important to call on a professional who will evaluate the rental rates based on its capacity, location, general condition, etc. “This evaluation is of course approximate, as rates vary depending on seasonality: high, medium, and low season.”
Choosing your second home wisely
The first determining criterion remains the budget. In addition to the purchase cost, the second home bears several charges such as insurance, maintenance, residence tax, etc. Once determined, it is then possible to orient oneself towards a type of property, a location, and additional services. “Type T3 apartments remain a very good choice, as they are highly sought after for purchase and therefore easier to resell later. Moreover, their capacity is an advantage for rental.”
“When choosing the lodging, it is crucial to choose the right location, especially in a resort: tenants seek easy access to slopes and shops, which allows for higher rental rates,” adds Thomas Mudry.
If, on the contrary, you are looking for investment and profitability without necessarily enjoying it, you can choose to orient yourself towards a studio or two depending on your budget: “The purchase price is lower. It is then possible to rent it out by the week, or even for the complete season at an attractive rate. This means a lower purchase price and a profitability that can be better. It all depends on the goal.”
What are the advantages of new for a second home?
“There are several reasons that can motivate the purchase of a new mountain property. The guarantee of quality and the absence of renovation works are the main motivations.” Indeed, new constructions require less maintenance. Moreover, the builder offers a ten-year warranty and a financial completion guarantee.
In addition to reduced notary fees (2.5% instead of 7.5
