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giggler000

Holiday rentals?

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Just looking around, a bit late for a holiday let, at the moment its a toss up between Isle of Wight and Penzance.  Anyhow more to the point, some questions I have that you people maybe able to answer:

1).  Are Holiday homes often BTL?

2). Is it hard to get a mortgage on a holiday home?  If so are they more often cash purchased

3). Do you think there are many funds, pension or otherwise that are invested in these places, it seems looking around bunches are operated by the same provider when you try and book.  I will get a link

4). Looking at the price in peak season, will these places be affected much by a crash?  People will still want to go some place, if Porchugal is to expensive, might they choose some place in the uk?

5). Will these holiday places be part of a sell off during a crash?  I thought perhaps they'd go first before someone's primary residence and so might be a good indicator of a change in tide or do you think places like Brighton & Pool holiday lets will hold there value?

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44 minutes ago, giggler000 said:

Just looking around, a bit late for a holiday let, at the moment its a toss up between Isle of Wight and Penzance.  Anyhow more to the point, some questions I have that you people maybe able to answer:

1).  Are Holiday homes often BTL?

2). Is it hard to get a mortgage on a holiday home?  If so are they more often cash purchased

3). Do you think there are many funds, pension or otherwise that are invested in these places, it seems looking around bunches are operated by the same provider when you try and book.  I will get a link

4). Looking at the price in peak season, will these places be affected much by a crash?  People will still want to go some place, if Porchugal is to expensive, might they choose some place in the uk?

5). Will these holiday places be part of a sell off during a crash?  I thought perhaps they'd go first before someone's primary residence and so might be a good indicator of a change in tide or do you think places like Brighton & Pool holiday lets will hold there value?

1) No.

2) Yes. Line all slack lending, banks swing between easy and impossible. They are pretty much impossible to get a mortgage on at the mo,

3) No. Any large scale fund will not touch individuals houses and the like with a barge pole. Pnesion funds are after regular, idex linked incomes. Holdaiy homes just do not offer that.

4). Yes. Everybody rushes to buy holiday homes. Then everyone rushes to sell them. As far as expense goes its cheap to go for an out of season all inc hotel in spain or Portugal than go for 2 weeks in a self catering house inthe UK. UK holidays are not compettive.

5) Yes. They always do. Poole's a shithole. Borghton is not a self catering holiday destination.

As someone from an parish that is blighted by 2nd homes + holiday lets, Im agains tthem. A quick look at te finances shows that 2nd homes + holiday lets are a massive money sink.

Holiday lets are pure mumsnet fantasy. In reality, if you have any fiannce on them, they can be a leveraged hell.

banks will not offer mortgages on them. However, I do know of some people, who can only be described as lunatics, who have clubbed together to extra ~200k (I think thats about 60k between 3 plus 40k + the cost of the refurb) to buy an over priced house in my home village. Insane. Providing you rpice competitively then the bets you can hoe for is school holidays - about 12 weeks let.

The regulation ha changed n furnished lets. To benefit from the small business breaks places need to be let has increased frm 10 weeks to 15. That alone will cause a huge deal of problems. Also the whole 'its free holiday cottage has been hammered as rules have changed from  140 days to 210 days.

A lot of people think they can holiday for free and get the lettings to pay the mortgage _ upkeep. Its wrong - the UK holiday season is short and, to get the income, you cannot holiday in summer.

http://www.rossmartin.co.uk/land-a-property/700-furnished-holiday-lettings-new-rules

 

 

 

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One of my friends is a holiday letter. She sees it as primarily somewhere for herself and family to go on holiday and a way to retain a personal connection with the country from which she originates. She has no mortgage and has family local to the let who can help out with admin. It works pretty well for her as you might expect but I really can't see how you could make it work without all those factors in your favour. Every now and then she gets BTL fever and starts thinking of mortgaging against the equity for another one, but I always talk her out of it.

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3 hours ago, Funn3r said:

One of my friends is a holiday letter. She sees it as primarily somewhere for herself and family to go on holiday and a way to retain a personal connection with the country from which she originates. She has no mortgage and has family local to the let who can help out with admin. It works pretty well for her as you might expect but I really can't see how you could make it work without all those factors in your favour. Every now and then she gets BTL fever and starts thinking of mortgaging against the equity for another one, but I always talk her out of it.

She will have to declare income overseas to HMRC as she is a UK resident - hope she is

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1).  Are Holiday homes often BTL?

Yes but financed by equity withdrawal

2). Is it hard to get a mortgage on a holiday home?  If so are they more often cash purchased

see above

3). Do you think there are many funds, pension or otherwise that are invested in these places, it seems looking around bunches are operated by the same provider when you try and book.  I will get a link

no 

4). Looking at the price in peak season, will these places be affected much by a crash?  People will still want to go some place, if Porchugal is to expensive, might they choose some place in the uk?

I work in the Norfolk Broads even considering the prices it does not justify 300k for a prefab aweful small bungalow.

5). Will these holiday places be part of a sell off during a crash?  I thought perhaps they'd go first before someone's primary residence and so might be a good indicator of a change in tide or do you think places like Brighton & Pool holiday lets will hold there value?

It has already started there are loads of little rental places only suitable for summer occupation (either via restriction or due to being cement board walls etc) listed at family home prices.

The prices for these will collapse along with boat ownership when the going gets tough.

eg

http://www.rightmove.co.uk/property-for-sale/property-63242444.html

http://www.rightmove.co.uk/property-for-sale/property-48281544.html

http://www.rightmove.co.uk/property-for-sale/property-58583347.html

http://www.rightmove.co.uk/property-for-sale/property-65426906.html

Its all fun when its a little bolt hole to save on hotel fees with a little extra on the side.

When its the best part of 400k for a building that would be considered unfit if it where located in a non touristic area i dont see the attraction.

Like I say to the wife when she wants me to buy a house in her home country (average salary sub 10k a year) no problem under 40K (still 4 x earnings) ....... except they are 250k

 

Edited by Fromage Frais

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1 hour ago, Gribble said:

She will have to declare income overseas to HMRC as she is a UK resident - hope she is

Yes to meet HMRC rules she has to let it at least so many days per year. It's popular so that's not a problem.  Haven't really asked her but she seems to be able to claim "actuals" against tax on wear and tear, or at least she is obsessive about collecting receipts for any cost that happens for it. Interesting what someone else said about it counting as a second property for stamp duty I didn't know that.

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47 minutes ago, Fromage Frais said:

Like I say to the wife when she wants me to buy a house in her home country (average salary sub 10k a year) no problem under 40K (still 4 x earnings) ....... except they are 250k

 

The locals must be fecked then. It's typical of some backward banana republic country to let house prices get totally out of proportion with salary multiples. Oh wait...

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