Investing in property is nothing new however entrepreneurs up and down the country are recognising that they can turn their holiday homes into a business without giving up their day job, with figures showing that a return on investment of more than 9 per cent per year can be achieved.
As the pound continues to fall against the Euro and dollar, which in turn means the cost of foreign trips abroad increases, many more families are considering several short breaks within the UK rather than an annual holiday as was once the norm.
As this shift to the staycation has driven rental interest in leisure parks throughout the UK, it has also provided further rationale for those considering investing in a property to turn their attentions to a holiday home, as opposed to a typical residential buy to let option.
Cedar Retreats in West Tanfield, North Yorkshire, offers property owners the chance to purchase a high-end luxury lodge dressed in cedar, which can be enjoyed as a holiday home and then rented to the public for the remainder of the year.
The business model is simple; purchase a retreat that you can use as a holiday home and when you don’t have the time to make use of it rely on the managed services at Cedar Retreats to rent it all year round, securing a regular return on your investment.
Managing Director of Cedar Retreats, Sarah Gawthorpe comments: “People are always really surprised to hear about the return on investment that can be achieved here at Cedar Retreats. It is certainly a more viable business proposition than to leave the property empty.
“The truth is that our customers are able to turn their lodge into a business without giving up their day job. The properties start from just £125,000 and when you consider the cost of an average house in the Yorkshire Dales that is very competitive.
“We have owners that have purchased two lodges, recognising the excellent value that they offer. Better still, they know that they can rely on us to manage the lettings giving them peace of mind that their guests are being properly looked after. It’s certainly a simpler option than buy to let, which can be time consuming, stressful and costly.”
When choosing a holiday home there are five top tips that Sarah would offer:
- Consider the location and make sure it is accessible. There has been an increase in the number of people enquiring about renting properties but our location just off the A1 means that we attract visitors from up and down the country.
- Local amenities are a must for families. The location you choose for a second home or holiday lodge needs to be within close proximity to amenities including a local shop, pubs and in our case a theme park.
- Read the reviews before proceeding with a purchase. Reviews from guests which feature online will give a good indication of the experience that they have received. Your guests will be your income so listen to the feedback before jumping in.
- Make sure the figures work. Take the time to do your maths and make sure that you are getting the return you would expect. There has never been a better time to invest but make sure that you have everything covered including management fees and any extras.
- Choose something different. Caravans and static homes have long been a preference for those that holiday regularly in the UK but times are changing. People want more for their money and that is why lodges with hot tubs and additional comforts are becoming increasingly popular. Make sure you choose something that you can enjoy as well as your guests, after all it will be your holiday home as well as theirs.
Cedar Retreats is a development with planning for 37 luxury lodges dressed in a cedar. Phase two and three of the build are now underway with 2 and 3-bedroom holiday homes available to purchase.