How Your Luxury Home Can Become The Source Of Multiple Income Streams
Malcolm Prescott, Managing Director of Webbers, estate agent for Bovisand Harbour, gives his thoughts on luxury home investment opportunities from a property expert’s point of view. Malcolm and his team are working closely with James Clarke, Director of local South Devon estate agent Lang Town and Country – Land & New Homes.
Holiday letting is certainly big business at the moment and we’re fortunate enough to live in a fabulous part of the world where people want to come and visit. Covid has undoubtedly impacted the UK holiday market – but in a very positive way – as the usual holiday jet-setters have taken the opportunity to stay in the UK for their annual break more so over the past 2 years. What that’s done is allow people to fall back in love with the country and rediscover the fantastic coastlines, countryside, and the quirky and charming towns and villages we have.
Coastal homes are very much top of the pops at the moment and to get away from the stresses and strains of busy urban life and relax in your own holiday home down by the sea, soaking up those magnificent views and enjoying different surroundings, is what a lot of our buyers aspire to.
Palmerston Court at Bovisand Harbour is perfectly placed to meet this demand and is an ideal match for those buyers with its exceptional quality throughout and its breathtaking waterside location. The draw of a brand new, purpose-built contemporary home with all mod cons is what buyers want and it’s our experience that it’s quality and comfort our buyers are seeking from their holiday getaway.
High-end finish and facilities
The number one draw tends to be the view. Does the home have that awe-inspiring vista, that uninterrupted outlook from the main living areas? Sea views are always most sought after and, of course, they don’t come much better than what you’ll see when you draw back the curtains of a morning at Palmerston Court.
The home will also need to be finished and presented to a high standard. Buyers want luxury and many buyers are eminently happy and prepared to pay a premium for the right product. Sleek and stylish, well-equipped kitchens and bathrooms, and generous light-filled open plan living spaces where the family can all congregate together and enjoy, are very high on the wish-list.
Two, three, and four-bedroom properties tend to be the most sought after, with the three and four-bedroom homes always a big plus in accommodating multi-generations of family or groups of friends who want to holiday together.
Of course, we all love to be outdoors when the weather allows us, so a good-sized balcony, terrace, or low maintenance garden is another key factor that holiday home buyers will search for. After a long day on the beach, what can be better than sitting on your terrace, watching the sunset over the sea with a glass of your favourite tipple on the go?
Storage, perhaps in the form of a garage, and, of course, parking, and with provision for an electric car charging point, are also big influencers in a buyer’s decision. Again, Palmerston Court will deliver on all of those elements of course.
New-build investment opportunities
A holiday home is also generally seen as a great investment for buyers too. Not only do you have your own home-from-home by the sea, but it does actually give you the opportunity for a great return and, in most cases these days, a very healthy income stream, as holiday letting in the UK is big business now and tariffs throughout the year are at excellent levels.
We’ve seen the letting season stretch considerably in recent years with many holiday lets now achieving well in excess of 30 weeks of bookings. Shorter 3 and 4-night stays are also popular outside the peak weeks, yet those shorter bookings still return a fantastic price. The income from a holiday let helps to pay for the running cost of the building of course and, with the really high-end lets, the financial return can be very significant indeed, providing a strong supplementary annual family income.
It’s our experience that most holiday home buyers will buy to use the property for themselves to enjoy at different times of the year. But then most, but not all, will want to see a return from holiday letting for the times they’re not there.
A tax-deductible asset
There are also some excellent tax-saving incentives with furnished holiday letting with the best being Capital Allowance. Capital Allowance is becoming far more known about now and, essentially, it gives an allowance you can use against the income you derive from the property (under certain criteria) which will save an owner a significant amount on their income tax.
Typically, on a new build property, the allowances are in the region of 30% of the transactional value. So, in the case of Palmerston Court, at £1,500,000 plus buying costs, that would mean £450,000 or so could be earned from the holiday let income before the owner has to pay any income tax.
Why wouldn’t you be interested in learning more about that? If you’re using the property as a furnished holiday let, making the most of Capital Allowance really is a no-brainer.
So, with Palmerston Court providing the ultimate in luxury, low maintenance, contemporary waterside living and with the ability to derive a serious income from lucrative holiday letting, why not invest here now?
For further information contact Webbers or Lang Town and Country on 01752 422460 or email email@example.com