Bavaria Ski Apartments

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phoenix_n

Guest
[edit - meant to post in overseas investment]

Did anyone catch the article in the sbpost about a development of apartments in Bavaria. Ski resort. 135K for a one bed with rental (estimated) of 12k. Even with expenses thats looks like a return of about 8%.

Too good to be true ?
 
[broken link removed]

Anyone know much about Select investments worldwide ?
 
The resort sounds like it's only suitable for beginners and intermediates, as such it won't attract serious skiiers/boarders. "Within driving distance of a number of other resorts". Nah, if you're serious about your skiiing (and are therefore likely to pay top Euro for the priviledge) you want to walking to the ski lift first thing in the morning, not jumping into the car and maybe getting onto the slopes around lunch.

Sounds like it'd be ideal for someone looking for a holiday location for the family but the people paying E100 a day for a ski pass in Val D'Isere ain't going to be going there. Holiday home? Maybe.

Still, it makes the prices being quoted for those Bulgarian ski resorts look ludicrous.
 
In general, Bavarian ski resorts are mainly used by locals and people who don't have too far to travel. So quite busy at weekends, though quiter during the week. The reason is they're simple smaller and at lower altitude than the Austrian ones nearby (Zugspitze being the only obvious exception). However, there's probably quite a bit of summer tourism there as well if it's close to Chiemsee and Hitler's old retreat. Having said that, I've no idea what the accomodation market is like around there.
 
If there is an apartment for sale in Bavaria costing €135,000 and the rent is €12,000 per annum, the question is not if you should buy it, the question is why on earth would the person who currently owns it be looking to sell it! Answer: They know more than you do.

What do you know about the local property market in Bavaria that you might even think of spending €1000 much less €135000 on buying something there? How close are you to austrian tax system? Do you know what the rental market is in Bavarian ski-locations in winter and summer? If you do know enough about such topics, then fine, go ahead and buy, but your question suggests otherwise.

Even if you assumed you can find people willing to pay €1000 rent a month (in Dublin city centre maybe, but high up in the mountains in Bavaria?!?!), then with some highly optimistic assumption that the supply of such people is continuous and year round to get you €12000 a year, then yes maybe €12000 is achievable (before costs!). I would suggest you will not get people renting 12 months of the year in a ski location. For the months you do get renters, I would also suggest you won't find too many people in Bavaria willing to pay €1000 a month to rent some joe-standard apartment high up in the mountains away from it all.

Of course, even at that level, you haven't factored in any costs. Flights, agents, middlemen, running costs, repairs, tax, the cost of your own time etc. should probably halve what you are getting in rent (assuming you are getting something in rent).

And finally, the bit that matters to you most is what someone would buy it off you for. Have you researched who is likely to buy it off you in a few years time (or however long you aim to keep it) and buy it off you at a price at which you make a profit? Are there many Bavarians queuing up to buy apartments in ski resorts at €135k? Answer: Unlikely. Reason: If there were, the vendors wouldn't be looking to sell them to people living in countries thousands of miles away.

I own up to scepticism of the highest order.
 

Its a development. You may like to read the article again.


I know nothing hence why i started this discussion. I opened the discussion to find out more


I never assume as thats makes an ass out of you and me. The 12K quoted in the article was after costs. (again if you read the article ) . I dont believe also that you could rent the place out for 12 months but i would like to think that higher rentals in winter offset lower rentals or none in other months.


Thanks for your contribution............
 
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