::Le Mag Group:: GÎTES, GITES AND VILLAS

GÎTES, GITES AND VILLAS, Jul 16

I expect that many of you reading this will be currently experiencing one or another of these forms of accommodation right now – summer is here and every bed in the Languedoc-Roussillon is fully booked at high season rates.

However that fact does not necessarily correctly represent the return on investment that the landlord is seeing… Many buyers coming to the region are understandably keen to benefit from a property that promises rental income in addition to personal usage and the choice available is diverse.

Gîtes versus Gites
Without wishing to wield a big and politically-incorrect axe at this matter it has to be said that there’s a marked difference in quality of presentation (and price) between Gîtes geared towards the local market and Gites promoted to the northern European holiday makers. As estate agents we are privileged to see many examples of both; comparing them is like contrasting chalk with cheese, the differences between the two are mainly down to culturally-derived levels of expectations and yet those taking a weeks’ accommodation for their hols would do well to know how to differentiate one from the other. On the one hand, a Gîte destined for the French market may well have eight different types of saucepan and associated paraphernalia available in the kitchen/ette cupboards but equally it will be advertised as being suitable for eight people despite only having 2 bedrooms; sofas and zed-beds making-up the numbers. Other than a well equipped kitchen, the quality of fixtures and fittings tend to be sourced from the shallow end of the catalogue, designed for easy replacement rather than aesthetic appeal, while cracked and/or chipped items are to be expected. Johnny Foreigner’s (more expensive) Gite on the other hand will invariably be presented as accommodating the same number of people as beds provided, it will no doubt be well equipped with dishwasher, stereo, satellite TV and power-showers along with the types of crockery and cutlery that you’d be happy to have gracing your own dining room table; rooms may well have been recently painted with light colours and nice soft furnishings while large glass doors open onto wisteria-clad terraces with bijou seating areas. Okay, so I’m painting the scene with an extremely broad brush but these examples are largely representative of what we see on a day-to-day basis and the truth is that the nicer a place is the better its chance of achieving a long letting season while also commanding higher rates.

Why the commentary on Gîtes versus Gites then? Well, the estate agent angle here is that, fluffy cushions to one side, this business is really all down to capital appreciation; only a very few people are going to be able to make a living out of owning and renting out Gîtes/Gites, they will generate income of course but rarely enough to retire on. The reason for all the effort people are willing to go to is the chance of capital appreciation; tying-up your hard-earned money in bricks and mortar is a very sensible choice, property that can then generate an additional ~3% per annum from being let out represents a clear bonus if not a desirable career track. Buyers considering such a purchase should really bear this in mind and try to achieve the best capital appreciation they can. Good news therefore – there’s no shortage of shabby Gîtes available on the market, just waiting for someone to come along and wave a magic wand. Due to the poor state they are in, having suffered years of under-investment, it is possible to negotiate a good deal (please be ruthless) and then take what is an ugly duckling and turn it into a swan; the basics are already there – rooms have been laid-out and terraces created, power-points installed and bathrooms positioned, plumbing and electrical supplies divided to separate units and communal areas created, all that is required is a touch of class and a willingness to invest in quality decorations, fixtures and fittings (and not forgetting landscaping) in order to create a superior Gites business and, at the same time, add value to the property.

But wait, hold on a minute; before investing all your hard earned cash into renovating a tired Gîtes business please take a few moments to consider what the market is demanding today. Sure, a well-presented Gite complex with shared gardens and pool does appeal to many, however an increasing number of holiday makers are interested in renting a private villa with its own swimming pool. As people become more confident in holidaying abroad they are more content to spread their wings and take-on a place independent of anyone else, allowing them the private getaway that they seek while benefiting from a greater choice. From an investment perspective it’s not a bad idea either, independent units are easier to buy and sell than large complexes, value can be added on a piece by piece basis and an empire can be created one brick at a time (or, equally, dissected one at a time). When the real money is to be made from capital appreciation and the market is increasingly full of motivated sellers, perhaps now is a good time to consider the buy-to-let villa market. If this idea appeals to you then please be aware that there are some basic rules of thumb to follow: buy within 30 (actual) minutes of the beach, choose non-overlooked properties where possible and ensure that shops, restaurants and bars are all nearby (within walking distance preferably), then you must create a clean, contemporary feel within the house. A pool is an absolute must, although expensive to maintain it will ensure you achieve a better rental income and, if heated, extend your letting season.

The choice is up to you. Whether you’re looking to buy or sell Gîtes, Gites or a Villa please feel free to contact us at RHF International and we shall be happy to help.

By James Edgecombe, RHF International, www.RHF1.com, Tel. 0678690597