OT Les Menuires / St Martin ©G.Lansard
TOOLS & ADVICES15/05/2019

Property investment and rental income in Saint-Martin-de-Belleville

A quick purchase or a well-considered investment, investing in a property in the mountains offers several benefits, and we offer a glimpse into what becoming a property owner in Saint-Martin means.

 

The benefits of an investment in Saint-Martin-de-Belleville

The village ski resort is located in the heart of the Three Valleys, offering direct access to the largest skiing area in the world, and in Val Thorens, the highest skiing resort in Europe, you get the assurance of a long skiing window.

Saint-Martin-de-Belleville is proving to be a ski resort on the rise. The continual spread of its reputation amongst an increasingly international client base bears witness to this. The upscaling of homes offered for sale and rental, and the local policy of improving the comfort and quality of living facilities does too.

The resort’s geographical location and attractiveness help drive the continual growth experienced by its property market, ensuring buyers can secure the capital they invest.

 

Property to be prioritised for purchase

The village’s trend demonstrating a move upmarket follows a general trend aiming for the upscaling of accommodation offered for skiing holidays in the mountains. Saint-Martin-de-Belleville’s client base, in terms of both investors and holidaymakers, prefers spacious, modernised properties. In this light, we see a much higher rental yield for homes with high-end finishes and services, and those where the average habitable surface area per bed is the highest.

In terms of property resale, the criteria remain the same based on a certain threshold, with higher surface area properties being in greater demand, and fetching higher sales prices per square metre.

 

Means of managing rental accommodation

If you decide to rent out the property you have purchased, to amortise your financial investment or draw on certain tax benefits while capitalising on use of the property for holidays, several rental management solutions are available for your home:

Firstly, you can enter into a lease with a rental property management specialist, which offers certain options based specifically on your intended personal use, or the type of services to be provided to your future tenants. This type of lease can also either be funded through a guaranteed fixed rental, or a variable rental based on seasonal rental performance which offers a better return on investment.

If you do not wish to enter into a lease, you can call on a management agent, who can handle the full management of your property for the rental periods on your behalf, taking a percentage of the rent.

Finally, for greater control, you can manage the rental of your home yourself, simply outsourcing the weekly cleaning and handover of keys to a nominated agent.

 

Potential tax benefits

Taxes applying to both the purchase amount and the rental income will depend on the tax situation of your home and the selected means of rental management.

A legal and tax investigation is often required to make the most of these benefits, but the following main types of tax benefits can be identified:

Rental of the property classified as a non-professional furnished rental (a leaseback), allowing either a lump sum rebate on rental income received, or in terms of a normal VAT scheme, allowing for the deduction of a whole range of expenses relating to the rental income.

In terms of the initial investment, for property subject to VAT, serviced accommodation property management allows, under certain terms and conditions, for a tax rebate on the sale price of the home.

 

The solutions offered by PROMOJAY

In the context of your property purchase, we are able to offer you a “fully-inclusive” package, including:

  • Rental management solutions for your home, suitable for the personal use of your property as well as your desired rental income, capitalising on the tax benefits this offers. We offer rental management contracts from the various management representatives working in partnership with our company.
  • Legal, accounting and tax management services for your investment are provided by an accounting firm specialising in the management of this type of property, associated with legal and tax consulting firms.
  • A comprehensive, flexible solution freeing you from the constraints that usually arise from the management and monitoring of your rental property, in addition to optimisation of return on investment.