For many, owning a holiday home and having somewhere to go to during the school holidays, weekends away, or for the entire summer/winter break is ‘the dream’, and seen as the ultimate goal.
However, the reality of this is that the ‘dream’ doesn’t often live up to the reality. Not for the fact that people aren’t able to buy these types of properties, but because owning a second property comes with a set of headaches and issues. Maintenance and upkeep doubles from just your personal residence to both your own home and the second property you now own, often many miles away from home.
Then after a couple of years, you get a little bored of going to just the one location during every single holiday, mostly because you feel you have to go there due to the fact you have invested a significant amount of money in that property to purchase, renovate, and maintain it.
This is why more and more investors are looking for alternative ways to purchase a holiday home, and in particular are looking at holiday lodges. The industry of letting out holiday lodges is growing ever popular in the UK, with tourism at record levels, holiday lodges work slightly better than some of the other alternative options, as they can house larger groups and families.
Of course, there are pros and cons of investing in holiday lodges such as they are typically more difficult to secure mortgage financing on, plus they have been known to be trickier when it comes to selling, and maintenance can be costly. However the pros can be that the returns are higher, and the location options are generally quite idyllic.
One UK property developer has developed a model for investing in holiday lodges that solves a number of the issues investors face when wanting to invest in this asset class. It involves purchasing the lodge with a smaller deposit and using a form of interest-free developer financing to finance the balance of the purchase. This comes out of the rental income generated from the lodge. In addition, there is an operator who takes care of all the maintenance and running of the lodge, ensuring the owner never receives a phone call to sort out a leaking tap, or has to worry about ensuring the lodge is occupied.
The other aspect they have solved is the exit from the investment. As mentioned above, selling a holiday lodge can be difficult. Here the developer will buy the lodge back from the investor at a pre-agreed time for a pre-agreed price (with some slight uplift). This takes away any risk of not being able to sell the property in the future and realise your profits.
Get in Touch
To discuss how we can help you with your next holiday lodge investment, talk with us directly, you can call us on +44 (0) 2039507939 or send us an email at firstname.lastname@example.org. If this is your first time landing on Thirlmere Deacon Property Investments I encourage you to visit our homepage https://tdpropertyinvestment.com to read more about us and to see what we have on offer.
Thirlmere Deacon Property Investment
7/10 Chandos Street, Cavendish Square
+44 (0) 2039507939