Holiday Home

smurfy75

You should all have a look at https://www.justlodges.com There is loads of useful info there about buying holiday homes and buy to lets.

SouthCoast

A friend picks up cheap caravan rentals here:


http://tickets.shop.ebay.co.uk/items/Caravan__W0QQ_sacatZ14423

dopester

Pennywise wrote: »

With the utmost respect I'd disagree. Holiday homes rent for an average £500 per week - that's around £250 per week low season and upto £1000 per week high season. If you rent it for just half the year at £500 per week, that's £13,000 income, less say £3k or £4k for overheads gives say £9k per year profit.

Do you live on planet-boom?

I will concede there should remain a viable market for luxury lets, but a lot of people will have their expectations hammered with what is to come.

dopester

PasturesNew wrote: »

I'd be interested in buying one, but for me. Just me. Strangers can s0d off. It'd be mine. My bolthole.

Apart from anything else.. like £4000 pa ground-rents, extra council-tax, and a property-crash that will melt minds - I'd keep an open mind to the possibility of tax changes for second homes and holiday homes.

The power of this land is HM Revenue & Customs, and there is a near bottomless chasm to be filled. Maybe not this year or next, but I'd be wary of getting in to anything which is a juicy target for a revenue hit. The budget has been delayed.. I wonder if it may holds any really big surprises.

Also I'm against it anyway, for that fact I just want a home. Then I want to concentrate addition capital on investment and productive measures - instead of the ridiculous obsession people have with massively over-valued property.

In fact.. googling "tax changes holiday homes".. and we find that Ireland recently took steps to hit owners of holiday homes. Perhaps not a heavy hit, but if implemented over here say at £400 or £500, would be nice for the Revenue - or help free up property for locals.

Tax changes for owners of holiday homes in Ireland

15 October 2008

Second home owners in Ireland are to be affected by a new annual property tax from next year. Capital Gains Tax for second homes is also being increased.

Announced in Ireland's budget, the new annual property tax for holiday homes in Ireland could generate €80m per year for local authorities, according to The Irish Times.

Owners of holiday homes, second homes and investment properties in Ireland will have to pay €200 for each additional property they own.

The additional income will be used to compensate the authorities for a €25m reduction in exchequer funding in 2009. The €200 property tax will go into a central fund, rather than directly to the local authority where the property is located.

As well as the new property tax, owners of such properties will also face a two per cent increase in capital gains tax when selling their property, writes The Independent. From 2009, this will stand at 22 per cent on the profits of the sale of non-principal private residences.

There are approximately 200,000 second homes in Ireland, 50,000 of which are listed as holiday homes, according to the country's Central Statistics Office (CSO). A further 200,000 people own buy-to-let properties in Ireland.

http://www.holidaylettings.co.uk/resources/property-news/miscellaneous-and-celebrity-news/tax-changes-for-owners-of-holiday-homes-in-ireland/a-2-58-1410/

stevetodd

dopester wrote: »

Do you live on planet-boom?

I will concede there should remain a viable market for luxury lets, but a lot of people will have their expectations hammered with what is to come.

I don't know where he got £4k from, we estimated £10,500 annual costs for a 2 bed cottage in Devon (assuming 100k mortgage). Although the figures did stack up and provided a yield of about 6%, PLUS some personal use, we thought it wasn't high enough to compensate for the exta risk and effort for owning a property some distance away. I must admit though I tend to be cautious when entering a new venture, I would rather miss out than risk taking on something more problematic that I first envisaged.

On top of the £10.5k annual cost there was about £43k capital required.

lagoslife

Some great advice from Pennywise and jhobson.

At the end of the day its a business and thorough research into the area, letting potential, tax issues etc should be resarched.

If you work hard at running and marketing your holiday let, bookings should follow.

Location, location, location.

Conrad

dopester wrote: »

Also I'm against it anyway, for that fact I just want a home. Then I want to concentrate addition capital on investment and productive measures - instead of the ridiculous obsession people have with massively over-valued property.

Whilst I agree with this sentiment, I am 99.9% certain when you one day come to sell, you will squeze every penny from the deal as your obsession will take on a shape that you claim today is ugly. People are such awful hippocrites - remember this in 30 years time.

dopester

This forum still ruled by the inflation-dreamers? :rotfl:

Anyway. Take your medicine like you were warned.

dopester wrote: »

Apart from anything else.. like £4000 pa ground-rents, extra council-tax, and a property-crash that will melt minds - I'd keep an open mind to the possibility of tax changes for second homes and holiday homes.

The power of this land is HM Revenue & Customs, and there is a near bottomless chasm to be filled. Maybe not this year or next, but I'd be wary of getting in to anything which is a juicy target for a revenue hit. The budget has been delayed.. I wonder if it may holds any really big surprises.

Also I'm against it anyway, for that fact I just want a home. Then I want to concentrate addition capital on investment and productive measures - instead of the ridiculous obsession people have with massively over-valued property.

In fact.. googling "tax changes holiday homes".. and we find that Ireland recently took steps to hit owners of holiday homes. Perhaps not a heavy hit, but if implemented over here say at £400 or £500, would be nice for the Revenue - or help free up property for locals.

Tax changes for owners of holiday homes in Ireland

15 October 2008

Second home owners in Ireland are to be affected by a new annual property tax from next year. Capital Gains Tax for second homes is also being increased.

Announced in Ireland's budget, the new annual property tax for holiday homes in Ireland could generate €80m per year for local authorities, according to The Irish Times.

Owners of holiday homes, second homes and investment properties in Ireland will have to pay €200 for each additional property they own.

The additional income will be used to compensate the authorities for a €25m reduction in exchequer funding in 2009. The €200 property tax will go into a central fund, rather than directly to the local authority where the property is located.

As well as the new property tax, owners of such properties will also face a two per cent increase in capital gains tax when selling their property, writes The Independent. From 2009, this will stand at 22 per cent on the profits of the sale of non-principal private residences.

There are approximately 200,000 second homes in Ireland, 50,000 of which are listed as holiday homes, according to the country's Central Statistics Office (CSO). A further 200,000 people own buy-to-let properties in Ireland.