£35,700 from a gite
Gites are a popular choice for first-time buyers because enthusiasm and resourcefulness can make up for lack of business expertise. According to Chez Nous, an agency that markets British-owned g"tes for rent, typically each guest accommodated earns about £1,200 per annum for the owner. So, a gite that can sleep 12 people could generate income of nearly £15,000 a year.
Some gites are run as holiday complexes, with several restored farm buildings able to accommodate two or three dozen people. Le Rhun, in Brittany, is one such business. It is located in the popular tourist area of the Crozon Peninsula, between Brest and Quimper.
The business comprises an attractive farmhouse with a self-contained annexe, three gites, swimming pool, stables and 40 acres of land. It has accommodation for 36 people.
Audited accounts show that the British owner, Roger Lewis, received an income of £35,700 in 2002, while the estimated earnings for 2003 are £42,000. Le Rhun is let through www.cottagesinfrance.co.uk, which guarantees a minimum return of £22,000 for the high season.
Lewis bought the property in 1989 as a second home, but decided to move to France full time in 1993. Restoration of the buildings took 11 years. He lets the properties from Easter to September and over the Christmas/New Year period. "It is becoming steadily more profitable," he says.
The 53-year-old has recently bought a home in a nearby village and plans to retire.
Domus Abroad (020 7431 4692) is asking £550,000 for the business. Lewis says that he would be prepared to manage Le Rhun by arrangement with the new owner. "It is difficult to take on a business like this and hit the ground running. I have the local contacts," he says. "It is not what you know, but who you know."
