Want to invest in mountain rental property? MGM’s experts can tell you about the concept and advantages of leaseback. Located in the Alps’ most beautiful resorts, our luxury establishments are an opportunity for you to make a profitable, long-term investment.
Leaseback property: a profitable, hassle-free investment
What is a leaseback?
Each leaseback property is awarded a star rating based on the standard of the services it provides, and offers fully-equipped, furnished accommodation for rent (on a daily, weekly or monthly basis).
leaseback properties also offer a wide variety of services and equipment to optimise holidaymakers’ comfort:
- Cleaning and maintenance;
- Swimming pool, sauna, hammam, wellness centre (depending on the residence).
Depending on the establishments, the residences offer you various services for hiring and/or borrowing equipment, as well as various additional benefits: ski equipment, kitchen utensils, board games, game consoles, raclette machines, etc.
How do I invest in a leaseback property?
Investing in a leaseback is simple. You own 100% of your property and can occupy it for 2 to 6 weeks per year (depending on the establishment). For the rest of the year, your apartment is managed by MGM Hôtels & Résidences (or CGH, Compagnie de Gestion Hôtelière), which lets out and takes care of your property and the residence while paying you a secure fixed rent.
Attractive luxury residences
A concept that first appeared in the 1970s, serviced residences are now a big success with holidaymakers. They provide a high level of comfort and meet all the new expectations of mountain tourism, which is no longer solely focused on skiing. Currently, the residence market is particularly dynamic, achieving high occupancy rates. This growing popularity is an important guarantee for your future rental property investment.
Owning a leaseback property: your advantages
- You own 100% of an attractive and profitable property asset;
- You benefit from several tax breaks: LMNP status enables you to claim back VAT and benefit from tax reductions;
- You receive a fixed, net rent every year, whether the property is let or not;
- You can enjoy your property and the residence’s services for several weeks a year: free access to the relaxation area with pool, hammam, sauna, hot tub and cardio-training room;
- Management and maintenance of your apartment is also provided by MGM Hôtels & Résidences;
- You do not have to pay any operating costs (water, electricity, heating, residence tax) ** ;
- As an owner of an MGM residence, you have priority access and booking privileges thanks to management by MGM Hôtels & Résidences and you benefit from discounts on treatments at the Montagnes du monde spa centre ;
- As an owner of an CGH residence, you have priority access and booking privileges thanks to management by CGH and you benefit from discounts on treatments at the O des Cîmes spa centre.
Buying a property in a mountain residence: how can you make your investment a success?
Location, a key success factor for your investment
As with any property purchase, location is the first factor to take into account when buying a leaseback property. Today, the mountains are one of the most favourable destinations for this type of investment. They are highly prized and meet French and foreign tourists’ growing need to get away from it all. They attract thousands of holidaymakers with a wide variety of benefits and a stunning natural heritage.
To guarantee a profitable investment, MGM has developed property schemes in the Alps’ most beautiful high-altitude resorts. Located at the foot of the slopes or at the heart of the ski area, our residences offer superb views and integrate harmoniously with their natural environment. Our locations therefore add value to your asset and allow you to make the most of the mountains’ incredible natural treasures.
Opt for a resort that is dynamic and attractive in all seasons
The attractiveness of the ski resort is another key success factor for your investment project. Today, holidaymakers no longer focus solely on winter sports, but are looking to experience everything the mountains have to offer. To meet these new expectations, MGM resorts have been selected for their diverse offering, good snow record, reputation among tourists and dynamic economy whatever the season.
Choose a builder and operator who specialises in the mountains
An experienced builder and operator, MGM has been bringing customers the benefit of its double expertise for over 50 years now. Combined with our years of experience, our mountain property construction know-how means you can invest in an upmarket leaseback property with total peace of mind. Our high standards can be seen in the quality of building materials used, the care taken over the finishes and the quality of our establishments’ services.
These many advantages will enable you to make a profitable investment in a leaseback. To give yourself every chance of success, you can also benefit from our experts’ assistance at every step of your property-buying project.
You can also find advice on investing successfully in a leaseback, and discover the various options for purchasing a second home.