Holiday Property Bond

eddyinfreehold · 9 October 2017 at 8:27PM

Does anyone have any experiences of investing in the Holiday Property Bond company. It's a sort of timeshare/debenture company. The advantage to us is that they are up on wheelchair/disabled facilities and access and their places are pretty well located in the UK with a select few in the Med. Normally going on holiday is a complete pain because of things like beach access or wheelchair access etc. but our family experience with this company in Anglesey was great. Any thoughts?

isplumm · 30 October 2017 at 9:58PM

have a read of https://www.tripadvisor.co.uk/ShowTopic-g1-i10700-k3283956-o340-Holiday_Property_Bond-Timeshares_Vacation_Rentals.html

Go to the post by slandheaghey Belfast N ireland at 17 October 2017, 20:18 - that seems to explain it quite well.

Mark

Seronera · 20 June 2018 at 4:24PM

If you already have a family experience with HPB in Anglesey why not ask them. Its not timeshare or debenture. Anyone who thinks it is has misled you. You put money into what is technically an offshore insurance based investment bond. They pinch quite a bit of that money in charges (roughly 25%), and the rest is divided between buying property and investments whose return helps to maintain the properties. That is how the property portfolio is built and expanded. There is also an annual fixed charge of £25 a quarter which you pay regardless of whether you use a property or not. Then if you book a property there is a weekly user charge that is around the £400 mark but can vary. This is to pay for the services during your stay...gas/elec/ bedlinen changes/cleaning etc.

There is a points system where each year you are allocated points in line with what you invested. You use those points to book properties. Out of season there are "points free" opportunities that come and go. This is to encourage low season occupancy. You still have to pay the use charge.

Will you make money on what you put in ? Absolutely not. In fact you will take a hit in view of the charges. Will your holiday entitlement increase or decrease ? It will only increase if you add money, but your existing points are indexed so do not erode in value if points requirements increase (they are indexed too, so they will).

Is it good value ? That depends. In the short term its a pretty expensive venture, but as time goes on it becomes better value the more usage you get out of it You can also pass the bond on to children/grandchildren by adding them as lives assured. This means they don't have to pay the initial charges again (The ones YOU paid !!!)

Are the properties good ? Without a doubt and the service from the staff on site and at head office is exemplary. Some of the property restorations are little short of spectacular and do the bond great credit (see Tigh Mor Trossachs, St Brides Castle and currently in build...The Coo Palace in Dumfrieshire)

Is it a Scam........? I flipping well hope not as I've had my money in since 1987. I've never had a bad holiday. We use the Bond twice a year on average as my 'investment' was comparatively small. My kids have grown up with it and love it and I've just got back from a lovely week at one of the smaller hidden away properties, Lower Knapp Farm in Devon.

You will find a few naysayers on these forums. Mostly they havn't a clue what they are talking about. I would emphasize that its not a 'cheap' holiday in any sense of the word. Is it for everybody ? Nope....but there are remarkably few dissatisfied Bondholders. If there is a criticism it is that the financial structure of the HPB company is somewhat opaque and difficult to pin down, and the portfolio valuations are low in my opinion as they are "a matter of opinion" as property is difficult to value. This means that encashment values are poor, but if that is important to you you should not become a bond holder. The HPB works best by putting in your stake and just leaving it for you and your family to enjoy, hopefully in perpetuity if all goes to plan. I've never regretted it, but I was 33 when I put my money in and I'm 64 now, so I have had my money's worth.

fred246 · 21 June 2018 at 6:38PM

I looked at it a few years ago. I would have invested a large amount for free access to holiday property. However, the user charge for ? cleaning was similar to what I would have expected to rent a place. The combination of large initial investment plus large user charge meant it wasn't for me. It seemed the best idea was to keep the money and just rent from a larger pool of rental properties rather than the limited number owned by HPB.

Seronera · 8 July 2018 at 5:21PM

To answer one of your perceived objections. You are not limited to the properties owned by HPB if you are an HPB member, so the choice is actually far wider than you suggest. There is a broad range of what are called "Tenancy" properties owned by private individuals who have contracted with HPB to let bondholders rent. This was initially to take up any difference in demand over availability at popular times, and it also meant the HPB could offer properties without incurring capital outlay.
Its been going a long time as I took my first tenancy holiday in Crete in 2004 and that property is still listed so it has obviously worked out for the Greek owner.

I do however appreciate your other points and if HPB is not for you, its not for you.

fred246 · 16 July 2018 at 7:37AM

There does seem to be a lack of clarity with the HPB. It seems to target people:
1)Do you like holidays?
2)Is investing in property a good idea?
Most people say yes to both.
Is investing in HPB a good property investment? I have never invested in property (except my own house) but the investment that tempts me is the Legal & General UK property trust PAIF. That made 51% in the last 5 years. Commercial property not holiday property. The HPB doesn't seem a good property investment.
So you spend a lot and get nice holidays. If you spend a lot of money you can always rent nice places. Airbnb has really changed the market and we have rented some great places without spending a lot.
Most investments can be passed on to children. I inherited stocks and shares that my father had invested in.

Archergirl · 16 July 2018 at 7:54AM

But the OP requires disabled friendly property, I expect they are harder to find to rent, but I would investigate a lot more, are there disabled groups or something that would rent places out?

onomatopoeia99 · 16 July 2018 at 9:27AM

My parents bought into HPB in the 1980s, they've had a lot of holidays at their properties over the last 30 years as a consequence and they've never been unhappy with the quality of the accomodations. The service charges are considerable but compared to just renting an equivalent property they aren't. All in they've had much nicer places to stay on holiday than they would otherwise be able to afford, but you have to bear in mind that they've been in for 30+ years.

It is not a scheme to make money for those buying in so comparing with OEICs is pointless, it's for having holidays.

fred246 · 16 July 2018 at 9:41AM

There are over 4 million properties on airbnb. HPB have 1400. Approx 3000 times more properties to choose from. Why invest thousands to limit yourself? And it's not a good investment. Nobody has said the holidays are bad. I just don't see the point.

fred246 · 16 July 2018 at 10:05AM

onomatopoeia99 wrote: »

All in they've had much nicer places to stay on holiday than they would otherwise be able to afford.

I really don't believe this but it's one of those statements that is impossible to prove.

Archergirl · 16 July 2018 at 10:17AM

fred246 wrote: »

I really don't believe this but it's one of those statements that is impossible to prove.

This was true of us when we had our timeshare, we stayed in some wonderful places all over the world, which we wouldn't have been able to afford otherwise.

Holiday Property Bond

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