Changes to the property buying regulations for non-Swiss in Switzerland mean that there are now some attractive investment opportunities to be had. Diana Wildman reports The Les Naturelles apartments, a series of wood-clad buildings, overlook the town of Leukerbad.

PURCHASING a Swiss property has long been a complicated process for the non-Swiss.

Buying a second home there had, for several decades, been considered an over-priced, over-regulated and unfriendly transaction. But now that image is being shaken apart by some forward thinking Canton officials who are realising that huge slices of inward investment are being lost because of their seemingly archaic quota system regulating the number of homes available for sale to non-Swiss.

There are still some regions where it is impossible for foreigners to own property but many of the classic tourist destinations have been opened up to non-Swiss buyers and they now boast a good selection of new homes where up to half may be bought by foreigners. But these days canny holiday homebuyers require all-year round facilities with an easily accessible golf course a high priority as well as good rental returns in their absence and an efficient management company to care for their investment throughout the year.

Leukerbad, in the Valais canton, where a fully furnished one-bedroom apartment at Les Naturelles, a series of woodclad buildings edging the town, complete with chocolate box views, can still be bought for around £141,000 with the added bonus of a guaranteed rental income for five years, is considered Switzerland’s ‘emerging market’ destination.

There is reasonable skiing and several golf courses within easy reach including the Leuk course 15 minutes away and Syon, which is playable all year round.

Ironically, this tiny town’s history dates back to Roman times when its thermal waters were found to have healing qualities. Even today four million litres of spa water gush out from 2,500 metres below the town centre at a scorching 51oC.

Now, Leukerbad is undergoing a makeover with a major building programme around the town consisting of a range of classically designed chalet-style apartment blocks offering a choice of one to three bedrooms and a range of facilities, some completed or nearing completion and others with units being sold off plan – all for sale through Overseas Homesearch.

All are within a few minutes’ walk of the vast thermal spa centre as well as close to one of the town’s ski lifts that whisk skiers up to the 50 miles of ski runs, many of which lead back to the apartment blocks’ front doors.

For the dedicated spa aficionado, buying one of the 24 units at the high-spec Residenz Palace Therme has the added bonus of a personal thermal tub for up to six people using spa waters pumped directly into the apartment’s main bathroom which boasts floor to ceiling windows with spectacular mountain views. The cost for the ‘right to use’ these thermal springs direct is included in the purchase price of the apartments which are from £775,000.

Leuk Golf Club is set in the valley a 20-minute drive down the mountain and is playable from March to November. The green fee is around £36, the course is walkable but buggies and carts are available. The course opened in 2002 and was designed by the Scottish golf architect, John Chilver-Stainer, and is designed in classic links style. There are probably too many water hazards but this pleasing, not too challenging, course is still considered a championship course and is 6,109 metres (6,719 yards) long.

A 15-minute drive east from Leuk is Sion Golf Club, situated in the heart of the Rhone Valley. This picturesque course extends over 42 acres and was designed to utilise the existing terrain but still managed to consist, in the main, of wide fairways and ample greens. Sion Golf Club is highly unusual for this region of Switzerland as it should be playable all year round. Green fees are again £36 and £40 at weekends. Membership costs around £6,000 and annual dues are around £720.

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Overseas Homesearch can arrange mortgages, subject to status, through the Swiss bank, UBS, at up to 70 per cent of the apartment’s value. Essential purchasing costs are a further 2.5 percent of the cost of the home plus a further 1.5 percent of the mortgage required for the mortgage guarantee.

Swiss law states that non-Swiss cannot resell their homes for a minimum of five years from completion apart from exceptional circumstances (death, serious injury etc). Then it can be sold to Swiss or foreigner purchasers. Overseas Homesearch offer an optional five-year rental programme to all their purchasers in Leukerbad.

For a guaranteed four percent return, owners have to make their apartments available to the company for ten weeks in high winter season and ten weeks during high summer, dates to be fixed each September for the following year.

Municipal taxes, payable annually to the local town hall, amount to 0.7 percent of the purchase price.

For more information contact Overseas Homesearch: 0800 652 0769; www.overseashomesearch.co.uk

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