uk holiday lets ,where to buy
Discussion
Isle of Wight??
I live here, so can see many downsides to the property market here. But there is 'talk' of redevelopment of certain towns (Sandown, Lake), but nothing concrete yet. So it 'could be' an opportunity as some of the towns are a little rundown at the moment. There are some property owners who are wanting to redevelop certain 'large' properties (old hotels, big amusement arcades) and there is increasing pressure on the council to allow redevelopment to the owners plans to rejuvenate the area. The owners are deliberately making their properties look rundown (a shame but an opportunity). Something has to give soon.....
Other than that, the tourist industry has been growing recently in the last few years. The natural beauty, island life, pub grub, major events (Cowes week, Bestival, Isle of Wight Festival, V-Dub, powerboat racing, Jack-up the 80s, Walk the Wight) all add to more visitors coming to the island. Many celebs, politicians and aristocracy already have property investments here..... (Benedict Cumberbatch married here a couple of weeks ago... - admittedly I had no idea who he was!!)
What budget are you looking at?
Mike
I live here, so can see many downsides to the property market here. But there is 'talk' of redevelopment of certain towns (Sandown, Lake), but nothing concrete yet. So it 'could be' an opportunity as some of the towns are a little rundown at the moment. There are some property owners who are wanting to redevelop certain 'large' properties (old hotels, big amusement arcades) and there is increasing pressure on the council to allow redevelopment to the owners plans to rejuvenate the area. The owners are deliberately making their properties look rundown (a shame but an opportunity). Something has to give soon.....
Other than that, the tourist industry has been growing recently in the last few years. The natural beauty, island life, pub grub, major events (Cowes week, Bestival, Isle of Wight Festival, V-Dub, powerboat racing, Jack-up the 80s, Walk the Wight) all add to more visitors coming to the island. Many celebs, politicians and aristocracy already have property investments here..... (Benedict Cumberbatch married here a couple of weeks ago... - admittedly I had no idea who he was!!)
What budget are you looking at?
Mike
Somewhere with year round visitors like the Lake District
Avoid west coast of Scotland with a 5 month tourist industry, We have a place on Skye.....
But the other thing to consider is management, if you cannot get there on a saturday you have to pay someone to clean and change the linen, check the workings, damage etc. We live about 8 hours from Skye currently so we don't let out. Weekend help know their worth so charge high.
Avoid west coast of Scotland with a 5 month tourist industry, We have a place on Skye.....
But the other thing to consider is management, if you cannot get there on a saturday you have to pay someone to clean and change the linen, check the workings, damage etc. We live about 8 hours from Skye currently so we don't let out. Weekend help know their worth so charge high.
Rangeroverover said:
I would look at buying student accomodation in Exeter, realistic +/-8% return plus appreciation, no management or changeovers to do weekly, no voids
Student numbers increasing from18,000 to 22,000
Don't get sucked into buying a unit in a development buy a property yourself
Holiday lets and student lets are a world of difference! Student numbers increasing from18,000 to 22,000
Don't get sucked into buying a unit in a development buy a property yourself
the key is to work out who you want to be renting to as it leads to different occupancy rates. You have two core groups the family market and the pensioner market.
With the family market your occupancy rates are skewed very heavily around school holidays which works well if you want to use the property during term time.
With the pensioner market the occupancy is spread pretty evenly throughout the year.
The wealthiest pensioners are in the South East and there are far more pensioners than young families in the UK with disposable income but they aren't on the whole going to travel long distances.
The Cotswolds is extremely popular as it is less than 2 hours from the two largest and wealthiest cities in the UK and also easy reach from many wealthy towns. The right sort of property is getting 80+ occupancy rates at present due to the spending power and mobility of the massive group of over 55s not just here but from Europe also. Easy access from motorways and A roads etc.
Once you head more remote or coastal you tend to be more seasonal and your target customer group becomes smaller.
Choosing a popular holiday rental area is important as people like to return to the same area and also here will be plenty of local agents not just to handle renting but to do maintenance and cleaning etc.
You also need to consider whether you also intend to use the property as this impacts yield very heavily and quite a few agents don't like it.
With the family market your occupancy rates are skewed very heavily around school holidays which works well if you want to use the property during term time.
With the pensioner market the occupancy is spread pretty evenly throughout the year.
The wealthiest pensioners are in the South East and there are far more pensioners than young families in the UK with disposable income but they aren't on the whole going to travel long distances.
The Cotswolds is extremely popular as it is less than 2 hours from the two largest and wealthiest cities in the UK and also easy reach from many wealthy towns. The right sort of property is getting 80+ occupancy rates at present due to the spending power and mobility of the massive group of over 55s not just here but from Europe also. Easy access from motorways and A roads etc.
Once you head more remote or coastal you tend to be more seasonal and your target customer group becomes smaller.
Choosing a popular holiday rental area is important as people like to return to the same area and also here will be plenty of local agents not just to handle renting but to do maintenance and cleaning etc.
You also need to consider whether you also intend to use the property as this impacts yield very heavily and quite a few agents don't like it.
Edinburgh. I've got a place there, fully managed, and it does reasonably well. There's a strong tourist industry for about 3/4 of the year, and the festival time is a veritable goldmine.
I live a long way away, so I have it run by a management company, with a concierge company who organise cleaning, meeting guests, etc. It's all very easy for me and while it costs more doing it that way, I get more business in the long run and have far less to worry about.
I live a long way away, so I have it run by a management company, with a concierge company who organise cleaning, meeting guests, etc. It's all very easy for me and while it costs more doing it that way, I get more business in the long run and have far less to worry about.
HI, thanks for an interesting post the Cotswolds sounds like an option worth investigating although as an Oxfordshire resident your money doesn't stretch very far 1 million buys 2 cottages where I live in south oxon.
80% though is a high rate of occupancy and investigation into area and types of property is a task worth undertaking .
do you have 1st hand experience of this market ?
cheers
D
80% though is a high rate of occupancy and investigation into area and types of property is a task worth undertaking .
do you have 1st hand experience of this market ?
cheers
D
DonkeyApple said:
the key is to work out who you want to be renting to as it leads to different occupancy rates. You have two core groups the family market and the pensioner market.
With the family market your occupancy rates are skewed very heavily around school holidays which works well if you want to use the property during term time.
With the pensioner market the occupancy is spread pretty evenly throughout the year.
The wealthiest pensioners are in the South East and there are far more pensioners than young families in the UK with disposable income but they aren't on the whole going to travel long distances.
The Cotswolds is extremely popular as it is less than 2 hours from the two largest and wealthiest cities in the UK and also easy reach from many wealthy towns. The right sort of property is getting 80+ occupancy rates at present due to the spending power and mobility of the massive group of over 55s not just here but from Europe also. Easy access from motorways and A roads etc.
Once you head more remote or coastal you tend to be more seasonal and your target customer group becomes smaller.
Choosing a popular holiday rental area is important as people like to return to the same area and also here will be plenty of local agents not just to handle renting but to do maintenance and cleaning etc.
You also need to consider whether you also intend to use the property as this impacts yield very heavily and quite a few agents don't like it.
With the family market your occupancy rates are skewed very heavily around school holidays which works well if you want to use the property during term time.
With the pensioner market the occupancy is spread pretty evenly throughout the year.
The wealthiest pensioners are in the South East and there are far more pensioners than young families in the UK with disposable income but they aren't on the whole going to travel long distances.
The Cotswolds is extremely popular as it is less than 2 hours from the two largest and wealthiest cities in the UK and also easy reach from many wealthy towns. The right sort of property is getting 80+ occupancy rates at present due to the spending power and mobility of the massive group of over 55s not just here but from Europe also. Easy access from motorways and A roads etc.
Once you head more remote or coastal you tend to be more seasonal and your target customer group becomes smaller.
Choosing a popular holiday rental area is important as people like to return to the same area and also here will be plenty of local agents not just to handle renting but to do maintenance and cleaning etc.
You also need to consider whether you also intend to use the property as this impacts yield very heavily and quite a few agents don't like it.
davidbht said:
HI, thanks for an interesting post the Cotswolds sounds like an option worth investigating although as an Oxfordshire resident your money doesn't stretch very far 1 million buys 2 cottages where I live in south oxon.
80% though is a high rate of occupancy and investigation into area and types of property is a task worth undertaking .
do you have 1st hand experience of this market ?
cheers
D
I live there during the weekends, albeit we're currently between homes as we sold up and haven't found the next place as there is a shortage of family homes in the style we want. 80% though is a high rate of occupancy and investigation into area and types of property is a task worth undertaking .
do you have 1st hand experience of this market ?
cheers
D
DonkeyApple said:
the key is to work out who you want to be renting to as it leads to different occupancy rates. You have two core groups the family market and the pensioner market.
With the family market your occupancy rates are skewed very heavily around school holidays which works well if you want to use the property during term time.
With the pensioner market the occupancy is spread pretty evenly throughout the year.
The wealthiest pensioners are in the South East and there are far more pensioners than young families in the UK with disposable income but they aren't on the whole going to travel long distances.
The Cotswolds is extremely popular as it is less than 2 hours from the two largest and wealthiest cities in the UK and also easy reach from many wealthy towns. The right sort of property is getting 80+ occupancy rates at present due to the spending power and mobility of the massive group of over 55s not just here but from Europe also. Easy access from motorways and A roads etc.
Once you head more remote or coastal you tend to be more seasonal and your target customer group becomes smaller.
Choosing a popular holiday rental area is important as people like to return to the same area and also here will be plenty of local agents not just to handle renting but to do maintenance and cleaning etc.
You also need to consider whether you also intend to use the property as this impacts yield very heavily and quite a few agents don't like it.
With the family market your occupancy rates are skewed very heavily around school holidays which works well if you want to use the property during term time.
With the pensioner market the occupancy is spread pretty evenly throughout the year.
The wealthiest pensioners are in the South East and there are far more pensioners than young families in the UK with disposable income but they aren't on the whole going to travel long distances.
The Cotswolds is extremely popular as it is less than 2 hours from the two largest and wealthiest cities in the UK and also easy reach from many wealthy towns. The right sort of property is getting 80+ occupancy rates at present due to the spending power and mobility of the massive group of over 55s not just here but from Europe also. Easy access from motorways and A roads etc.
Once you head more remote or coastal you tend to be more seasonal and your target customer group becomes smaller.
Choosing a popular holiday rental area is important as people like to return to the same area and also here will be plenty of local agents not just to handle renting but to do maintenance and cleaning etc.
You also need to consider whether you also intend to use the property as this impacts yield very heavily and quite a few agents don't like it.
North Cotswolds is the most touristy, so out past Woodstock from you.
The small 2 bed cottages are OK but you'd be amazed how many couples prefer to pay for a larger property so I'd say focus on the 3 bed area. In the villages around Stow and Moreton that means paying around 300-350k. Anything larger and you start attracting groups which tend to increase wear and tear.
Plenty of agents, some local and some national and they always want Northern Cotswold stock.
What we are actually looking to do at present is buy a large family home but holiday let it during the week as a two bed (locking some rooms up and downstairs). This means that when we arrive on a Friday evening it is all cleaned and stocked and will also sweat a small income to cover costs and maintain the property.
Around Kingham is also a luxury static caravan/log cabin set up and these are pretty good as well if you wanted more units for less etc.
Being able to park easily outside is important as is a walkable pub. I noticed some 2/3 bed cottages have popped on the market in Lower Swell which is a perfect little village for a rental escapade.
THANKS FOR THE HEADS UP.
feet on the ground is always the best knowledge.
I agree about parking and the pub
I live in chalgrove ox44 so Woodstock is the other side of town for us I don't know if rental agents would find this area of interest as oxford is 8 miles Henley 9 miles,thame 8 miles . too far from the Cotswolds however a friend has a 4 bed house for sale with annexe on the market to sell approx. £550k I wonder if he could rent out to agents.???? as a holiday home walking distance pubs with food , 3 miles from le manoir Raymond blanc place and 2 miles from crazy bear hotel.
i will check out the villages you suggested
thank you very much for your assistance
cheers
D
feet on the ground is always the best knowledge.
I agree about parking and the pub
I live in chalgrove ox44 so Woodstock is the other side of town for us I don't know if rental agents would find this area of interest as oxford is 8 miles Henley 9 miles,thame 8 miles . too far from the Cotswolds however a friend has a 4 bed house for sale with annexe on the market to sell approx. £550k I wonder if he could rent out to agents.???? as a holiday home walking distance pubs with food , 3 miles from le manoir Raymond blanc place and 2 miles from crazy bear hotel.
i will check out the villages you suggested
thank you very much for your assistance
cheers
D
No worries. Edinburgh and IoW are great areas also but local is often more logical.
The upside of researching the Cotswolds is that worst case scenario you spend some evenings in nice pubs
Our old neighbour rents out via http://www.character-cottages.co.uk and is very happy with them. And while we are looking for the new home we use them also on the client side and they are really pleasant people.
I also spent some time dealing with a local agent in Chipping Camden who were really good and much more chilled than the national firms.
I'm obviously bias but the place is absolutely riddled with tourists. It draws in walkers, pensioners, families, corporates, fishermen, shooters, fishers, horse punters and obviously the London mob. Even at the height of the credit crunch people were still renting.
This does mean that yields are lower than other places but so is the risk.
The upside of researching the Cotswolds is that worst case scenario you spend some evenings in nice pubs
Our old neighbour rents out via http://www.character-cottages.co.uk and is very happy with them. And while we are looking for the new home we use them also on the client side and they are really pleasant people.
I also spent some time dealing with a local agent in Chipping Camden who were really good and much more chilled than the national firms.
I'm obviously bias but the place is absolutely riddled with tourists. It draws in walkers, pensioners, families, corporates, fishermen, shooters, fishers, horse punters and obviously the London mob. Even at the height of the credit crunch people were still renting.
This does mean that yields are lower than other places but so is the risk.
For sure iow and Edinburgh don't excite me as IOW will be a boat ride away and Scotland have different laws in property ownership.
Location will always be first consideration buying the best you can afford in the most sort after area yields may e lower but disposal is easier and appreciation higher.
The pub scene in the villages is important along with the amenities local to the area.
Your info should be fun to research and one which we will enjoy.
So thank you very much for the heads up.
cheers
D
Location will always be first consideration buying the best you can afford in the most sort after area yields may e lower but disposal is easier and appreciation higher.
The pub scene in the villages is important along with the amenities local to the area.
Your info should be fun to research and one which we will enjoy.
So thank you very much for the heads up.
cheers
D
To give you an idea, I have just sold a student house in Exeter, £340,000 it has 5 beds each bringing in £120 per week for 48 weeks of the year. Full management and tenant find is 10%.
After paying management fees it brings in just under £26,000
tenants pay their own utility bills, each year cleanup and maintenance is about £1000
so £25,000 income, no changeovers and linen/cleaning every week, no voids etc.
If you are dead lucky you might beat that on a holiday let, depends on the cost of doing weekly changeovers and occupancy rate
After paying management fees it brings in just under £26,000
tenants pay their own utility bills, each year cleanup and maintenance is about £1000
so £25,000 income, no changeovers and linen/cleaning every week, no voids etc.
If you are dead lucky you might beat that on a holiday let, depends on the cost of doing weekly changeovers and occupancy rate
Rangeroverover said:
To give you an idea, I have just sold a student house in Exeter, £340,000 it has 5 beds each bringing in £120 per week for 48 weeks of the year. Full management and tenant find is 10%.
After paying management fees it brings in just under £26,000
tenants pay their own utility bills, each year cleanup and maintenance is about £1000
so £25,000 income, no changeovers and linen/cleaning every week, no voids etc.
If you are dead lucky you might beat that on a holiday let, depends on the cost of doing weekly changeovers and occupancy rate
Why did you sell it?After paying management fees it brings in just under £26,000
tenants pay their own utility bills, each year cleanup and maintenance is about £1000
so £25,000 income, no changeovers and linen/cleaning every week, no voids etc.
If you are dead lucky you might beat that on a holiday let, depends on the cost of doing weekly changeovers and occupancy rate
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