What should you consider when purchasing a holiday let?
A holiday home can be a great investment for people seeking a second income stream or planning for retirement.
Marketing Lancashire research shows that tourism visits to the county grew 8.4 per cent from 2012 to 2017, and in 2017 there were 5.88 million trips from staying visitors who were guests of hotels, B&Bs or self catering properties.
This demand for accommodation is seen by many as an opportunity to invest in a holiday let property.
Here are 3 key points to consider before you begin your property search:
- Location - is the property in a tourist area or popular area for visitors? Considering where the property is in relation to attractions, amenities and transport links can be the difference between guests choosing your property over another.
- Budget - establish your budget, factoring in both the purchase price and any associated costs. The minimum deposit required for a holiday let mortgage is often 25 per cent, so it’s a key consideration when thinking about affordability.
An experienced holiday letting agent can give advice as to pricing your property.
- Professional advice - having the right solicitor, accountant and lender who all understand the sector is key in ensuring you’re fully aware of the legal and tax implications of owning the property, and establishing what level of finance you can access. An experienced holiday letting agent can give advice as to pricing your property and what level of occupancy you can expect.
Contacting all of these parties can be time consuming but our Hospitality Business Guide brings together a wide range of information from a mix of sector specialists and is available to download for free.
The Cumberland specialises in mortgages for holiday lets. If you’d like to know more about how we can help, contact our team of experts to get the conversation started.