There are plenty of compelling reasons to invest in a ski chalet in the Alps: the lifestyle factor, the wonderful memories, the appreciation of your properties’ value over time and of course, the pure convenience of it all. But one of the main questions that may be circling around in your head is: can you make money from chalets?
We know that returns on your investment are of utmost importance and here at OVO Network, we can help you accurately estimate how much your potential property could earn in just a few simple clicks using our rental calculator.
Money matters
Regardless of the plentiful lifestyle reasons there are to invest in a chalet, let’s get straight to what we’re here to discuss: the money side of things. If you’re asking yourself: can you make money from chalets? Then never fear, as we’ve got all the answers you’re looking for right here.
Appreciation
The good news for those considering buying is that not only can you make a decent income from a place that you can also enjoy staying in each year, but you will also own an asset that will likely increase in value year on year.
In fact, there are some incredibly encouraging recent statistics showing that ski property is outperforming many of its city equivalents, with Knight Frank’s 2020 Prime Ski Index demonstrating that in some resorts, prices have grown by a whopping 19%.
Rental income
The other crucial element when it comes to the question of ‘can you make money from chalets?’ is: what kind of rental potential can we expect realistically?
We’ve come up with a simple way of working this all out for you with our rental calculator. Simply input key criteria such as destination, property type and capacity, distance to the slopes, town and sea and features such as saunas, swimming pools and whether pets are allowed and hit calculate. Et voila! You have an accurate representation of how much rental income you can expect to attain for your potential ski chalet property, based on actual data from chalets with similar characteristics that we already work with.
Our example
If you want to understand how this works and are still pondering the question of ‘can ski chalets make money?’, let’s take a look at a real-life example from OVO Network’s very own facts and figures:
Here’s an example using a chalet with the following characteristics:
· 5-stars
· Situated in La Clusaz or Manigod
· For 10 people
· 5 bedrooms
· 5 bathrooms
· Within 5km of the village centre and 5km of the slopes
· With a fireplace and a hot tub
· Pets allowed
…which can expect to make between 68k-83k a year. The exact amount will be dependent on a wide range of variables, such as the specific facilities available, when the property is launched, having excellent quality professional photography and how it’s priced.
To add to the mix, in 2019, OVO Network sold an average of 169 nights per property and had an average occupancy rate of 55% across our 85 properties in Manigod and La Clusaz. And that’s not including time spent unoccupied for renovations, or chalet owners enjoying the properties themselves!
So, can ski chalets make money? Well, the simple answer is: yes, they can! And the more complicated answer of ‘how much?’ can be easily estimated using our intuitive online tool based on our abundance of previous experience.
For more information on how to make your ski chalet a viable long-term source of income, check out our blog post on how to start a successful ski chalet business, where we share some expert advice on exactly what it is that our client base looks for in their perfect break.
