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Business > Business ResearchFrench Gites - lifestyle or a business?
Posted by nick_niesen in Business on November 8th, 2010
Many are attracted to buying a Gite complex by the lifestyle associated with owning a gite. Lazy days in the French sun supping a glass wine or two sitting around a pool - that will do me fine! After years of 9 to 5 and hours spent on the daily commute it appears to be an attractive option.
At 1st-for-French-Property we have seen a significant increase in the number of enquiries for this type of property over the last few years. Without doubt Gite complexes often look beautiful from a distance but you must be realistic about buying into this market. Firstly Wholesale Chicago Bears Jersey , it is a very competitive market and secondly like any business it is hard work (especially in the early years). Of course, there are many successful gite businesses, and you can buy into this market!
We are not going to cover the French bureaucracy issues but concentrate on the business issues.
Remember this is a business and your approach must be professional and commercial. You need a business plan and it must be realistic. If you are buying into an existing gite business check the accounts thoroughly - what are the trends over the last few years? Check turnover and profits especially. This is a notorious "cash in hand" trade and although the owner may imply the profits are better than declared in the accounts - buyer beware! Are staff costs included or have the present owners done all the work or used un-paid family members? Is there a lot of repeat trade? What are bookings like for the forthcoming year? What capital will be needed to be injected for renovations and maintenance?
In France, the "gite season" is typically July and August - a 10 week season! Outside this period you will have to market well - probably to foreign markets - to fill your rooms! Often a more expensive gite complex will have 4 or more rentable units so that they can maximise their earnings in the "gite season".
Some factors - and this is by no means complete - to consider in this competitive market:
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