Investing in property

The certainty of investing in a scarce resource

Land in the mountains is a rare resource, and our ski resorts, combined with French elegance, are unique in the world. Impossible to reproduce. And more and more people around the world are realising this – and want access to it by buying a second home. Demand far outpaces supply, particularly in Méribel, where only 300 to 350 transactions take place each year, and the scarcity of properties is increasing. Building rights are limited due to new legislative constraints, such as the ZAN (Zéro Artificialisation Nette) law, which strictly regulates future development, and the SCOT (Schéma de Cohérence Territorial) regulations, which cap the number of square feet that can be built.

Short, medium and long-term investment performance

Investing with Rising Stone offers exceptional potential for capital gains, underpinned by the scarcity of mountain properties and a property market in constant demand. In the short term, investors can position themselves in areas with high expansion potential, and can aim for yields of 15-25%, compared with the 6% generally seen in traditional property. In the medium term, they can build up a property portfolio to generate regular rental income (between 3% and 5% a year), with the prospect of a great resale price at the end of the cycle. Lastly, over the long term, investors can build up their assets with a view to passing them on to their families, ensuring that they will be there for future generations to enjoy.

Take advantage of technological revolutions

Rising Stone takes advantage of major technological advances to offer its clients an unrivalled residential experience. By incorporating innovative solutions at the design stage, properties benefit from advanced features such as state-of-the-art home automation, which enables intelligent control of the living environment, and building technologies that ensure optimum energy efficiency. In addition, the use of augmented reality and digital customisation techniques allows future owners to visualise and modulate every detail of their home. This is how Rising Stone uses technology to enhance comfort, sustainability and customisation, while ensuring an exceptional quality of life.

Limited risks

Investing in property is less volatile than other investment sectors. The market is remarkably stable, even in times of economic uncertainty. Luxury mountain real estate is one of the few investment categories with a real prospect of increasing in value, not least because of the marked imbalance between growing global demand and limited supply. Buyers are increasingly focusing on prestigious resorts that guarantee high-quality snow coverage, including the Espace Killy (Tignes-Val d’Isère) and the 3 Vallées. This dynamic is ushering in a new phase of price inflation, especially as these precious resorts are drawing interest from a growing number of international buyers.

An advantageous tax framework

Investing in property offers a particularly advantageous tax framework.

• Recovery of 20% VAT on the purchase of a new property or a property in a future state of completion, subject to certain conditions. According to the French General Tax Code, property VAT applies to building land sold by professionals, as well as to new properties or properties sold under VEFA regulations (vente en l’état futur d’achèvement – buying off plan). In the case of VEFA sales, VAT is payable progressively on the total purchase price, in line with the progress of the building work.
• Furnished-rental property status enables investors to benefit from expense deductions and the opportunity to depreciate property costs, thereby reducing their tax base.
• When buying a new-build property, notary fees are reduced, generally to around 2-3% of the sale price. This applies to new-build houses, cottages or flats, and those less than five years old, as opposed to the higher fees associated with older properties (which are 7% on average).

Notary fees are regulated by the French state and paid by the purchaser. These include:

• 80% in taxes and levies for the State and local authorities.
• 10% disbursements, i.e. sums advanced by the notary for document-related costs.
• 10% remuneration of the notary’s office, made up of both regulated fees and fees set by the notary themselves.
• 0.1% property tax.

High rental yields and high occupancy rates

Property also offers higher returns than the stock market, without as much volatility. This is a guarantee of long-term income for investors. Rents are also higher than in the conventional property market, increasing the rate of return on investment. To maximise this return, Rising Stone has joined forces with Barnes 3 Vallées, an internationally renowned partner specialising in rental management.