Buying your own holiday lodge brings with it a whole host of benefits, not only financially, but in terms of lifestyle.
If you fancy getting away from the trappings of modern life to your own scenic hideaway, all while possibly making a little bit of money on the side too, then investing in a holiday lodge might just be right for you.
Return on investment
Obviously one of the most important things to consider is what kind of return you’re going to get on your investment.
The good news is that it’s estimated that holiday lodges could earn you around three times more income than a standard buy-to-let.
Tourism is a significant part of the UK economy and this only looks set to continue now with the decision to leave the European Union.
This means that there is great demand for properties such as holiday lodges, and during peak periods such as summer and school holidays, holiday lodges can command extremely high rents.
No hidden fees
Usually, when buying a property such as a buy-to-let, you have to pay a host of extra fees such as stamp duty and surveyors fees and before you know it a lot of your investment gets lost in paperwork and fees which you might not even understand!
However, because holiday lodges are sold as holiday homes as opposed to residential properties, you are exempt from all of these charges.
It’s a very straightforward process as well, so you shouldn’t need to employ a solicitor (although you can if you’d rather), and this can save you even more money.
The simplicity of purchasing a holiday home compared to buy-to-let is partly what attracts so many people to do so.
Affordable
Generally speaking, holiday lodges are a lot more affordable than buy-to-let properties. According to this article from The Independent, you could purchase a holiday lodge in a popular area such as Dorset for around £50,000, when a traditional bricks and mortar property could cost as much as ten times that amount.
Holiday lodge prices vary greatly, and a quick check on lodge estate agents, Sell My Lodge shows that they range from as little as £15,000 to as much as £290,000, showing that there truly is something for every budget.
Tax benefits
Another appealing feature of holiday lodges is that they’re exempt from recent rules which limited the amount of tax relief available to buy-to-let owners.
The new rules could significantly affect how much buy-to-let owners will make from their properties, but with a holiday lodge, you know that more of your income will be coming into your own pocket, rather than to the tax man.
Your own to use as you please
While holiday lodges certainly are a great way to earn some extra income, don’t forget that it’s yours to do with as you please, and it can make a fantastic holiday retreat when you fancy the odd weekend away yourself.
Holiday lodges are situated on quiet parks in scenic parts of the UK, and are built to modern housing standard, kitted out with modern luxurious furnishings often including en-suite bathrooms and hot tubs.
So make sure that you don’t just purchase a holiday lodge to rent out and let other people enjoy, make sure that you and your family get some enjoyment out of it!
