Thinking Of Buying A UK Holiday Home - Usage / Rental
Discussion
I know there have been threads before but with Brexit and a pandemic what are people's thoughts currently
Essentially I get bored easily so holidays have limited appeal but if I owned a holiday home in Wales / Peaks, I could leave a couple of road / dirt bikes there
Due to recent events I'm put off a foreign place, I'd rather rent mine out and use that money to go abroad. If I'm not nearby to clean / maintain the place realistically how much money is there after cleaning / agency costs ?
The other thought would be buy a house and permanently rent it out just keeping the garage for my toys - the benefit being added security / point of contact / electricity over just renting / buying a garage
Essentially I get bored easily so holidays have limited appeal but if I owned a holiday home in Wales / Peaks, I could leave a couple of road / dirt bikes there
Due to recent events I'm put off a foreign place, I'd rather rent mine out and use that money to go abroad. If I'm not nearby to clean / maintain the place realistically how much money is there after cleaning / agency costs ?
The other thought would be buy a house and permanently rent it out just keeping the garage for my toys - the benefit being added security / point of contact / electricity over just renting / buying a garage
Talk to a holiday letting agent in the area you're interested in.
Plow your way through all the sales bulls
t and ask to see the actual numbers then find out how the constraints built into tax concessions that apply to holiday lettings would work for you.
It's a narrow path you have to walk down to make any money and when we did all the legwork and considered all the potential aggravation involved we decided we couldn't be bothered.
Plow your way through all the sales bulls
t and ask to see the actual numbers then find out how the constraints built into tax concessions that apply to holiday lettings would work for you.It's a narrow path you have to walk down to make any money and when we did all the legwork and considered all the potential aggravation involved we decided we couldn't be bothered.
Jaguar steve said:
Talk to a holiday letting agent in the area you're interested in.
Plow your way through all the sales bullst and ask to see the actual numbers then find out how the constraints built into tax concessions that apply to holiday lettings would work for you.
It's a narrow path you have to walk down to make any money and when we did all the legwork and considered all the potential aggravation involved we decided we couldn't be bothered.
That's why I thought I'd ask on here - I prefer hearing tales of doom and gloomPlow your way through all the sales bulls
t and ask to see the actual numbers then find out how the constraints built into tax concessions that apply to holiday lettings would work for you.It's a narrow path you have to walk down to make any money and when we did all the legwork and considered all the potential aggravation involved we decided we couldn't be bothered.
The village my family come from here in Cornwall, is now in darkness over the winter months. About 60% are second homes, although that figure is as high as 71% elsewhere. The knock on effect means the local shops fail and there's not enough employment for people to rent. 6 monthly winter lets aren't an attractive prospect for most anyway.
Lot's of government intervention on the horizon regarding holiday homes. Welsh government are gradually working themselves up into a froth mouthed frenzy over second homes.
Local people can't afford them apparently. Not sure why that matters, and it's usually as a direct consequence of government decisions anyway.
Anyway, looks like holiday homes will be considerably more difficult to own in Wales in the future.
Local people can't afford them apparently. Not sure why that matters, and it's usually as a direct consequence of government decisions anyway.
Anyway, looks like holiday homes will be considerably more difficult to own in Wales in the future.
I knew that was an issue 20 years ago but I wasn't aware it was now.
Prices have gone up everywhere, possibly because we've let an extra 10 million in ! People flock to my area too, I couldn't afford to live in a nice place in London, I believe that's the capitalist way.
I've seen some farm buildings set in 3 acres which would be ideal but unfortunately are in the wrong area for me.
Sounds like the best option is to buy a house, rent it out and retain the garage or if I could find one with a granny flat and garage even better
I have found a couple of isolated garages in rural areas but I can't think that I could secure them well enough and no mains power etc is a bit limiting.
Prices have gone up everywhere, possibly because we've let an extra 10 million in ! People flock to my area too, I couldn't afford to live in a nice place in London, I believe that's the capitalist way.
I've seen some farm buildings set in 3 acres which would be ideal but unfortunately are in the wrong area for me.
Sounds like the best option is to buy a house, rent it out and retain the garage or if I could find one with a granny flat and garage even better
I have found a couple of isolated garages in rural areas but I can't think that I could secure them well enough and no mains power etc is a bit limiting.
KTMsm said:
I know there have been threads before but with Brexit and a pandemic what are people's thoughts currently
Essentially I get bored easily so holidays have limited appeal but if I owned a holiday home in Wales / Peaks, I could leave a couple of road / dirt bikes there
Due to recent events I'm put off a foreign place, I'd rather rent mine out and use that money to go abroad. If I'm not nearby to clean / maintain the place realistically how much money is there after cleaning / agency costs ?
The other thought would be buy a house and permanently rent it out just keeping the garage for my toys - the benefit being added security / point of contact / electricity over just renting / buying a garage
We bought two properties to holiday let in Pembrokeshire this year, a 2 bed flat and a 4 bed house. Since going live in mid July we’ve taken £43k in rentals across the two properties (which cost a total of £390k). We re almost 2/3 booked for next year on the 4 bed property.Essentially I get bored easily so holidays have limited appeal but if I owned a holiday home in Wales / Peaks, I could leave a couple of road / dirt bikes there
Due to recent events I'm put off a foreign place, I'd rather rent mine out and use that money to go abroad. If I'm not nearby to clean / maintain the place realistically how much money is there after cleaning / agency costs ?
The other thought would be buy a house and permanently rent it out just keeping the garage for my toys - the benefit being added security / point of contact / electricity over just renting / buying a garage
Costs 18% to have it marketed by one of the big agencies, cleaning / laundry etc works out around £100 week for both, both have just moved on to business rates (strict rules around this in wales) so no council tax. Water, gas, electric to come from profits etc.
At the moment it’s more tax efficient to provide furnished short term let’s than any form of btl - you can offset mortgage interest costs, furnishing, cleaning etc from profits before tax.
Post Brexit, there’s going to be far more people looking for houses around the uk coastline in more affordable areas for their retirement imho.
Edited by bennno on Sunday 28th November 08:23
outnumbered said:
"Get bored easily" and "holiday home" don't really seem to be a good match to me...
During lockdown I've taken to motorbike riding - it takes 3 hrs to get to Wales so in a day I'm riding there and back more than I'm riding around it.So thinking of a base in Wales where I could crash for a night (a garage would do) or leave my dirt bike so I can ride a road bike there, rather than drive my van
Very much 24 / 48hr trips when I can find time & the weather is good, which is when there aren't any B&B's and I'm not a fan of camping
Can't help with Wales but my Dad and Stepmum bought a lodge here about 5 years ago when Dad decided that flying was no longer for him.
They use it for about 12 weeks of the year, the rest of the year it's rented out by the park owners, who take care of all changeover work etc etc.
Thus far they are approx £10k in profit after all the annual charges have been paid, though part of the reason for it being this high is that they don't go there during school holidays and those are the highest rental return weeks.
Although it wasn't ever intended to be such, it's turned into a nice little earner and I'd say the only downsides are that they can't just "up and go" if it's been booked by a customer and they get charged the changeover fee every time they use it themselves.
YMMV of course, but the short answer is that it's perfectly possible to own a holiday home and not get involved at all with the cleaning etc.
They use it for about 12 weeks of the year, the rest of the year it's rented out by the park owners, who take care of all changeover work etc etc.
Thus far they are approx £10k in profit after all the annual charges have been paid, though part of the reason for it being this high is that they don't go there during school holidays and those are the highest rental return weeks.
Although it wasn't ever intended to be such, it's turned into a nice little earner and I'd say the only downsides are that they can't just "up and go" if it's been booked by a customer and they get charged the changeover fee every time they use it themselves.
YMMV of course, but the short answer is that it's perfectly possible to own a holiday home and not get involved at all with the cleaning etc.
We have a nice holiday cottage on the IOW (hey: msg me for rental details if interested 
)
I would say it wipes it's face in terms of costs - we make a couple of thousand each year, but every few years we can have major costs (repairs to slate roof hit almost £15k this summer, which wiped out all of the past few years profits!).
In our defence...I'm from the Island, and we didn't get it to run as a business.
We have the advantage of using family for changeovers & some gardening. Which (again, in our defence) means we probably pay the staff more than we need to
Pals who have a flat in Poole I think have had their costs increased to £125+ for a weekly changeover. That can eat a chunk out of a long weekend break!
Given your description, sounds to me like a garage with power and a porta-potty might work better, just for your own use!
That said, I've helped facilitate a few Gold DofE expeditions in Wales...& there are many clearly English folk running pubs/cafes etc.
I'd pick that area (Llanwrtyd Wells is lovely!) as a possibility....although I've not been a biker for *many* years, so not sure of the possibilities for you.
)I would say it wipes it's face in terms of costs - we make a couple of thousand each year, but every few years we can have major costs (repairs to slate roof hit almost £15k this summer, which wiped out all of the past few years profits!).
In our defence...I'm from the Island, and we didn't get it to run as a business.
We have the advantage of using family for changeovers & some gardening. Which (again, in our defence) means we probably pay the staff more than we need to
Pals who have a flat in Poole I think have had their costs increased to £125+ for a weekly changeover. That can eat a chunk out of a long weekend break!
Given your description, sounds to me like a garage with power and a porta-potty might work better, just for your own use!
That said, I've helped facilitate a few Gold DofE expeditions in Wales...& there are many clearly English folk running pubs/cafes etc.
I'd pick that area (Llanwrtyd Wells is lovely!) as a possibility....although I've not been a biker for *many* years, so not sure of the possibilities for you.
Helpful posts thanks
I've been having a look on Rightmove - there are some interesting projects from £30k, googling shows several have sold and re sold at auction many times, which doesn't bode well
Whilst I love a project I know I'd be better buying one locally, sell it for a profit and just buy something with the proceeds
I've seen a few sets of barns - tempting to chop a barn off and sell on and a few church halls which make no sense to convert but would be interesting just to "camp" in them as they are
Logically I think finding something with a detached garage / outbuilding / annex makes the most sense - then rent the house on a long term lease which should hopefully avoid any Welsh attack on holiday homes, or maybe buy one on the English side of the border
I've been having a look on Rightmove - there are some interesting projects from £30k, googling shows several have sold and re sold at auction many times, which doesn't bode well
Whilst I love a project I know I'd be better buying one locally, sell it for a profit and just buy something with the proceeds
I've seen a few sets of barns - tempting to chop a barn off and sell on and a few church halls which make no sense to convert but would be interesting just to "camp" in them as they are
Logically I think finding something with a detached garage / outbuilding / annex makes the most sense - then rent the house on a long term lease which should hopefully avoid any Welsh attack on holiday homes, or maybe buy one on the English side of the border
bennno said:
We bought two properties to holiday let in Pembrokeshire this year, a 2 bed flat and a 4 bed house. Since going live in mid July we’ve taken £43k in rentals across the two properties (which cost a total of £390k). We re almost 2/3 booked for next year on the 4 bed property.
Costs 18% to have it marketed by one of the big agencies, cleaning / laundry etc works out around £100 week for both, both have just moved on to business rates (strict rules around this in wales) so no council tax. Water, gas, electric to come from profits etc.
At the moment it’s more tax efficient to provide furnished short term let’s than any form of btl - you can offset mortgage interest costs, furnishing, cleaning etc from profits before tax.
Post Brexit, there’s going to be far more people looking for houses around the uk coastline in more affordable areas for their retirement imho.
All good and accurate advice which pretty much mirrors my own experience in South Devon.Costs 18% to have it marketed by one of the big agencies, cleaning / laundry etc works out around £100 week for both, both have just moved on to business rates (strict rules around this in wales) so no council tax. Water, gas, electric to come from profits etc.
At the moment it’s more tax efficient to provide furnished short term let’s than any form of btl - you can offset mortgage interest costs, furnishing, cleaning etc from profits before tax.
Post Brexit, there’s going to be far more people looking for houses around the uk coastline in more affordable areas for their retirement imho.
Edited by bennno on Sunday 28th November 08:23
Which agency do you use bennno, if you don't mind me asking? I pay 19% atm but they're a large specialise SW England outfit, not a national agency...
If you’re planning renting out long term take a close look at the ins and outs of tenancy agreements. I believe they’re due to change in Wales in 2022.
Getting a tenant may not be a problem but getting rid of a tenant at a later date may be.
In Scotland the law seems to side very much with the tenant and you need valid reason to ask them to leave. Even putting a property up for sale means they can refuse to leave. Don’t ask me how I know this …
I’d never be a private landlord again.
Getting a tenant may not be a problem but getting rid of a tenant at a later date may be.
In Scotland the law seems to side very much with the tenant and you need valid reason to ask them to leave. Even putting a property up for sale means they can refuse to leave. Don’t ask me how I know this …
I’d never be a private landlord again.
bennno said:
both have just moved on to business rates (strict rules around this in wales) so no council tax.
Does small business rates relief not apply? I have a place in Cornwall that is on business rates as a holiday letting "business" so no council tax but no rates either as it's under the threshold. Even the 4 bed inn/restaurant in the village was assessed at < business rates relief threshold last time they revalued. Landlord couldn't believe his luck.
jonsp said:
bennno said:
both have just moved on to business rates (strict rules around this in wales) so no council tax.
Does small business rates relief not apply? I have a place in Cornwall that is on business rates as a holiday letting "business" so no council tax but no rates either as it's under the threshold. Even the 4 bed inn/restaurant in the village was assessed at < business rates relief threshold last time they revalued. Landlord couldn't believe his luck.
theres a hospitality business rate exemption this year also.
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