Income from holiday cottage

pineapple

Thinking of investing in a property to let out as a holiday cottage. Has anyone done this? What sort of return did you get and was it worth it?

jimjames

Not done it but I'd only think it's worthwhile if you own directly. Avoid ones that sell you stake in a place as you've not guarantees.

If you're not local to it you might find costs outweigh income and will have limited season.

racing_blue

I have not done this. Would be interested to hear if anyone has successfully offset their operating loss (from a single holiday let) against tax?

pineapple

racing_blue wrote: »

I have not done this. Would be interested to hear if anyone has successfully offset their operating loss (from a single holiday let) against tax?

I sold my house recently and have enough capital to invest in a cheap property - a total investment of around £110,000 - which of course is doing nothing in the bank. I'm renting at the moment so my options are either move there myself, let it long term or do holiday lets. It's in a lovely tourist location and it would probably fetch around £400 per week high season. Ordinary residential let would be around £450 a month.
However I'm well aware of the hassles and expense of holiday lets, not to mention the tax rules which might as well be double dutch to me - so I might have to employ an accountant. As for residential lets, not everyone is a perfect tenant like me!:rotfl:Of course it would be simplest just to occupy it myself except I love where I am and would prefer just to fund my life here

traineepensioner

"I'm renting at the moment....... I love where I am and would prefer just to fund my life here"
Why not just buy a property where you are? It's more efficient from a tax point of view and certainly less hassle :cool:

chucknorris

pineapple wrote: »

Thinking of investing in a property to let out as a holiday cottage. Has anyone done this? What sort of return did you get and was it worth it?

I considered it, but I came to the conclusion that distance owning would be too much hassle. Better if you live near the property, but I still think that it demands a lot more input than BTL.

atush

I own a holiday property and it is only worth it as your own vacation home. Srue I rent it out when not there, but I dont realy make any money. I use that money to cover costs.

the best investment is the property where you live esp if you are currently renting

pineapple

traineepensioner wrote: »

"I'm renting at the moment....... I love where I am and would prefer just to fund my life here"
Why not just buy a property where you are? It's more efficient from a tax point of view and certainly less hassle :cool:

If only....

I am in the Yorkshire Dales and can't afford to buy anything in this location. Rents however are not much higher (if at all) than in an average Yorkshire town.. So though it might seem a bit strange I do know people who own and let a house elsewhere to fund their renting/living here.

sheramber

pineapple wrote: »

If only....

I am in the Yorkshire Dales and can't afford to buy anything in this location. Rents however are not much higher (if at all) than in an average Yorkshire town.. So though it might seem a bit strange I do know people who own and let a house elsewhere to fund their renting/living here.

Have you discussed the pros and cons with them?

As they are already doing it they would be the best source of information.

pineapple

sheramber wrote: »

Have you discussed the pros and cons with them?

As they are already doing it they would be the best source of information.

It's a massive pro for them - exchanging their house in a built up town for this location at little or no extra cost.
I already know I could do that.
But they don't have the holiday rental option whereas the property I am buying is in a tourist area and does have that possibility. Hence this thread and my initial question.

richbeth

racing_blue wrote: »

I have not done this. Would be interested to hear if anyone has successfully offset their operating loss (from a single holiday let) against tax?

Hi,
If you mean offset the loss against other income in that tax year that option was taken away a couple of years ago.
R