Carbis Bay Holidays :: Why Holiday Let?
Individuals wishing to cash in on the low interest rates should consider buying a UK investment property as a furnished holiday let. Up until now, buy-to-let has been the popular route for private investors to ride the property boom however with falling rents in many areas and hefty exit costs, buy-to-let may not necessarily be the only or most effective option.
A holiday let can potentially yield a far greater return than a buy to let on a day to day basis and is therefore a less risky investment as even if rents fall, the holiday let situation gives the investor far greater capacity to absorb these changes.
In addition, in the event that property prices fall, the holiday let can still continue to operate as a profitable enterprise whereas the buy to let investor will be left out in the cold with a poor rental yield and no hope of cashing in his investment until the market picks up again. Of course the commercial viability of the investment will vary according to each individual case.
The Inland Revenue view this investment as a business, technically called " Furnished Holiday Accommodation in the UK", there are certain rules that apply to qualify the property, thereafter there are considerable tax beneifts. Take a look at the links under More Information on this page.
It would appear that the holiday letting is a much overlooked investment route which has not had the take-up that one would have expected. With investors appetite for property now well established, now may well be the time to make an investment that could generate a genuine commercial return - both now and in the future.
As with any investment in property, location is vital and although St Ives' property values have increased dramatically in recent years and more recently steadied, research suggests that this particular area of Cornwall has further potential for growth.
Drop us an email, if you are looking for advice, Carbis Bay Holidays are not just one of the biggest letting agents in the area, we have over 10 years experience and a detailed knowledge of St Ives and the surrounding villages. If you have a specific property that you are interested in purchasing, we can advise on the suitability for holiday letting. If you own a property in the area and are looking to holiday let, we will provide extensive guidance as to how to maximise your income by furnishing your property so that it exceeds the expectations of holidaymakers.
If you would like to consider an investment in a holiday home but, find the cost of holiday property prohibitive, we can also advise on shared ownership, where the cost of the property can be split between 2 or 4 people with equally proportional returns for a lower initial investment.
UK law allows for up to 4 owners to be registered as freehold/leaseholder owners of a property, this enables like minded parties to share in the value of the property.
A number of our properties are jointly owned by two couples, these relationships have worked successfully for some years and enabled them to invest in holiday property when possibly it may not have been achievable for an individual couple.
It is not important that interested parties are known to each, it is however important that all parties have the same objectives with regard to furnishing, expenditure, own use and holiday letting.
Some owners may like to consider drawing up a legal document,agree and define the terms of their partnership, this agreement may also define an exit clause should one party wish to sell. A further alternative is to set up a Limited Company with each owner acting as shareholder and director of the Company. Optionally, a representative of Carbis Bay Holidays can also act as a Director to assist with decision making but without an interest in the property or Company. Individuals are advised to consider expert advice from their accountants before considering this option.
If you would like to register an interest in a Shared Ownership Scheme, please email us. We will then contact you and introduce you to other interested parties and provide further advice of our experience.