16:19 PM, 27th February 2019, About 2 years ago
This furnished holiday let investment opportunity is based on an operational holiday resort based in Cornwall – a popular tourist destination for British and overseas holidaymakers alike. As the site is successfully trading, the developer is looking to expand and therefore investors will have the opportunity to purchase the additional homes that will be built on site.
Onsite facilities include shops, a restaurant, arcade, spa, water park and a swimming pool.
The benefits of investing in holiday homes
Capital allowances are available on furnished holiday lets, which means that investors can further maximise their income, something which is unavailable for traditional buy to let properties. Capital allowances are available on furnished holiday lets, which means that investors can further maximise their income, something which is unavailable for traditional buy to let properties. There is also mortgage interest tax relief that is applicable. This means that investors will virtually pay no tax for the first four years of the investment.
For example, someone who invests in a £225,000 furnished holiday let may claim £63,113 in capital allowance.
The holiday homes are also run by a management company, meaning the investor does not have to constantly oversee the day-to-day running of the room or organise guest stays. These factors make holiday home investments ideal for those overseas or the busy individual who cannot afford time to constantly manage the unit.
How can Brexit positively affect the UK’s tourist industry
The threat of a hard Brexit has caused the pound to plummet relative to other currencies. This has made holidaying in the UK more attractive to those from overseas and has made holidaying elsewhere less attractive to the British who will have to spend more money. After Brexit, holidaymakers looking to travel to EU countries will have to pay a £6 fee to buy the relevant documentation to gain access to countries within the EU. Coupled with the concern that once Britain leaves the EU, UK citizens will no longer have access to free healthcare has meant that holidaymakers are increasingly looking to spend some time within the island’s borders.
The popularity of Cornwall as a tourist destination
The holiday home investment opportunity is in Cornwall, one of the most popular holiday destinations in the UK for domestic and overseas travellers.
With a temperate climate, sandy beaches and rugged coastlines, Cornwall is the most popular place for British people to visit if they are holidaying within the UK. The county’s popularity will lead to a good occupancy level of the holiday homes.
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