I'm thinking about buying a holiday home!

paul1964_2

wotsthat wrote: »

That's not quite 75% and not quite towns but I take the point. I know Port Isaac fairly well - at the top of the hill there are loads of holiday homes which I've never seen occupied and look ripe for being burgled. However, if you go into the village there is a pub which seems to do ok out of season and very well in season. There's a primary school in the village, a busy shop and good (for Cornwall and the size of the village) bus services and a nice community atmosphere. This isn't a place that has been raped by holiday home owners.

I think you may (understandably) have a slightly "rose-tinted" view of the village. The old part of the village is already predominantly holiday homes and this phenomenon has spread up the hill and outwards.

From the local tourism site:

During the twentieth century the pilchard shoals declined and Port Isaac’s way of life began to change. Its isolation became the attraction to an ‘upwardly mobile society’ and 70% of the old village has been bought by second home owners.

silvercar

I have personally known a lot of people that are living just like this. A lot. Lots of illegal HMOs and my neighbour even had 3 people living in his shed, sharing one extension lead... not a nice shed either. My neighbour had 24 people in his house at one point, fire brigade would turn up and chuck out those in the roof space, but they'd be back the next day. He charged £50/week to sleep in a room with 4-6 bunk beds.

I thought LHA would give enough housing benefit to afford the average rent.

Many don't pay council tax though - they converted to business rates so they paid less under the "small business" rates rules.

I can't explain the rest/tax as I'd end up writing a volume trying to explain what I mean. I am not good at some types of explaining. Others will put it more succinctly and into the correct words. My only clues are: capital gains, offsetting income against paid employment.

Urban myths. You can't claim business rates just by declaring a resi property is a business. Anyway business rates are higher than resi rates. And you can only consider rental income against earned income if the holiday let qualifies, which means it has to be let out for rent for a minimum time.

Graham_Devon

silvercar wrote: »

I thought LHA would give enough housing benefit to afford the average rent.



Urban myths. You can't claim business rates just by declaring a resi property is a business. Anyway business rates are higher than resi rates. And you can only consider rental income against earned income if the holiday let qualifies, which means it has to be let out for rent for a minimum time.

Urban Myth? Even estate agents in the area, who make a living through these sales, are stating this is the case.

PasturesNew

silvercar wrote: »

I thought LHA would give enough housing benefit to afford the average rent.

There aren't the places to rent. At best, in spring/summer, there used to be 2-3 overpriced places to rent.... and 200 people looking for somewhere. So people start by putting you up on their floor, and you get talking to people and if you're lucky enough you get to find a room or garage that's not 'legal'. Landlords taking cash in hand and chucking you out if you sign on. Not one or two instances, but it's a major way of life for many.

silvercar wrote: »

Urban myths. You can't claim business rates just by declaring a resi property is a business. Anyway business rates are higher than resi rates. And you can only consider rental income against earned income if the holiday let qualifies, which means it has to be let out for rent for a minimum time.

To be a business you have to make it available for rent X days/year and rent it for Y days. And you claim the small business rate because you didn't make much money and that's less than council tax.

It is happening down in Cornwall, don't make me search for links....

PasturesNew

Some links re small business rates/2nd homes:

"to provide for small business rate relief not to apply to second home owners" - http://www.danrogerson.org/2010/03/29/mp-rogerson-to-introduce-second-homes-control-bill/

"Owners of second homes can avoid paying council tax, by claiming the property is ‘available to let’ for seventy days a year. This classes them as a small business, and leaves them entitled to small business rate relief. By defining their second home in this way, second homeowners can also get out of paying capital gains tax, by claiming ‘rollover relief’ when they sell the property." - http://www.danrogerson.org/2010/02/09/mps-call-for-end-to-second-home-tax-breaks/

PasturesNew

wotsthat wrote: »

Well I hardly dare say but that was pretty much the idea.

The plan in embryo is to buy an apartment in a rather unfashionable town as that's where friends and family are. The town is generally owner occupied and is currently receiving some much needed investment as part of a regeneration scheme. The apartment will potentially become the main home in retirement in some 20 odd years.

The irony is that a two bedroomed apartment with very distant sea view has a higher value than my 'proper' house in the East Midlands.

I'm down soon (I'll try not to block your parking space) and certainly have a few more things to look out for. Although I'm an Emmett I do have some Cornish friends and will ask what they think.

Unfashionable = dire.

Regeneration = shiny places for toffs, at exorbitant prices.

If you want good sea views, affordably, then Newquay or St Ives can provide some hidden gems.

Penzance can be quite cheap for sea views, including a couple of stunners I've spotted.... but it's really rough/with a drugs problem.

Or Looe.... it's never taken off because it's a b4st4rd to get to, it floods and there's little parking, often not even roads to the old places. It's cheaper, but also watch for mundic.

PasturesNew

wotsthat wrote: »

St. Austell. I'll be a holiday home pioneer!

I know the area well. That's a ferkin big hill .....

You're right, it's unfashionable as a holiday destination. Carlyon Bay developers ended up in deep doo doo when they tried to develop the beach down there, opposition fought them all the way.

Prices are dropping round that way, lack of jobs, low pay - and recently the floods. Places are unfashionable for a reason ... there are better places.

One buys in St Austell to live there, not to speculate. And it's a "road by road" area, have to really know your way around. Even the 'affordable housing' isn't shifting... and some of those new developments have high repossession rates and high levels of scally dwellers they won't tell you about.

Blobby8_2

wotsthat wrote: »

The irony is that a two bedroomed apartment with very distant sea view has a higher value than my 'proper' house in the East Midlands.

Thats not irony its market forces, I'm in the East mids & can only dream of moving to Cornwall. No one moving up here to buy holiday cottages is there ? Just shedloads of sheds.

silvercar

PasturesNew wrote: »

Some links re small business rates/2nd homes:

"to provide for small business rate relief not to apply to second home owners" - http://www.danrogerson.org/2010/03/29/mp-rogerson-to-introduce-second-homes-control-bill/

"Owners of second homes can avoid paying council tax, by claiming the property is ‘available to let’ for seventy days a year. This classes them as a small business, and leaves them entitled to small business rate relief. By defining their second home in this way, second homeowners can also get out of paying capital gains tax, by claiming ‘rollover relief’ when they sell the property." - http://www.danrogerson.org/2010/02/09/mps-call-for-end-to-second-home-tax-breaks/

To actually get the rollover relief it has to actually be let atmarket rent for 70+ days. In which case you should be making some profit and paying tax on the profit.

Link from government rather than some MP:

http://www.direct.gov.uk/en/MoneyTaxAndBenefits/Taxes/TaxOnPropertyAndRentalIncome/DG_4017930

ultrawomble

wotsthat wrote: »

St. Awful. I'll be a holiday home pioneer!

Corrected for you