holiday lodge/log cabin as investment

2babyboys

hello,
I would like to look into the possibility of purchasing a holiday lodge/log cabin to let out as a little business venture.
Does anyone know of any good websites that have forums where I can chat about this to existing owners?

Many thanks:beer:

theartfullodger

£10 says 5 years after purchasing this excellent "investment" you wish you'd never done so,....

Cheers!

Lodger (Call me cynical..)

SouthCoast

Wealth warning.

Investments go up and down.

This one will only go down.

maninthestreet

2babyboys wrote: »

hello,
I would like to look into the possibility of purchasing a holiday lodge/log cabin to let out as a little business venture.
Does anyone know of any good websites that have forums where I can chat about this to existing owners?

Many thanks:beer:

A glorified garden shed is not an investment.

Ian_W

maninthestreet wrote: »

A glorified garden shed is not an investment.

A bit expensive for a POTTING SHED IMHO.

Whether they will appreciate in value over a few years (or not) is fairly high risk and speculative I think. Especially when you can buy 3 and 4 bed houses that aren't restricted to "holiday use" only in the same price bracket nearby.

Whether you could break even or make a profit from holiday letting I dunno but one certain winner is the site owner - as the ground rents and site fees are usually a great earner for them!

lincroft1710

Is this the type of investment that would interest you? It's not new.

Reference - Lodge - DP 8
Viewable at - Shorefield
Price - £89,995

Situated at our Shorefield Country Park. This lodge 28 x 20 (2 bed) is within a short walking distance to all the facilities. This lodge has 24 years remaining on the licence until May 2033.

Click here to request more info

After 24 years you'd probably have to remove it from the park and its value would be minimal. You'd get a good income from hiring it out during season, but this would be partially offset by park rent, cleaning, insurance, fuel, furniture/furnishings replacement (at least once) during lifetime, income tax on profit, loss of interest on £90K/interest on loan to facilitate purchase.

It's not an "investment" but it could provide an income.

poppysarah

before 24 years you'd probably have to replace it.

The literature should state it is not something to be bought as an investment.

trumpton

I think these things are maybe okay if seen as a holiday home that you will use a lot, but not suitable as a business venture. We have friends who have one and they go every weekend (when open) and spend holidays there. Friends and family use it when they are not there.

However, the fees etc are high and there are whole months in winter when it is closed. Plus, you do not own it outright. If you are looking for a business venture, a standard BTL would make better sense. Surely a lodge can only depreciate as the lease shortens?

A few months ago on Homes Under the Hammer a couple bought one in Devon to do up and sell on - however the valuation was the same after they had done it up as they paid at auction. The EA's view was that there is a limited market for such properties.