6 Reasons to invest in a furnished holiday lodge

In a time where people are exploring additional avenues to secure their financial future, we’ve listed six reasons why investing in a furnished holiday lodge to let out is a smart opportunity and one that you should definitely consider… 

It’s an exciting way to plan for your retirement, giving you an additional income boost towards your pension pot
By purchasing a fully furnished holiday lodge, you’re making an investment in your future. Your capital is protected, allowing you to sell up and cash in that potential surplus investment.

You’ll become the proud owner of a second holiday home
Purchasing a holiday lodge allows you to escape from your usual 9-5 and everyday surroundings. Head off on a trip to your home away from home, ready for you to take advantage of during those quieter booking periods. 

Hands-off management and tenancy
Holiday lodges operating on holiday resorts will have an onsite maintenance and management team. This enables the resort team to not only attend to urgent onsite requirements but manage the upkeep and operation of your lodge and guests. This means you can sit back, relax and enjoy hassle-free residual income.

High yeld and consistent rental income
Unlike long-term tenants, holiday lodges operate on high turnover, and with the right location and accommodation, holiday resorts can achieve occupancy rates of over 80% per year. This will ensure you are generating a high yield on your return on investment. It’s not unusual for yields to achieve 14% more than double the average residential rental property.

Sounds expensive? Not with your entitled capital allowance…
Not only are lodges generally cheaper than a second home, did you know that as the owner of a fully furnished holiday let, you have the ability to claim Capital Allowance on your property’s fixtures, furnishings, and any essential equipment? Yes, these are all tax deductible on your pre-tax profits, helping you save on those essential expenses to maxismise your income.

…plus the other tax benefits!
Furnished Holiday Lodges are not applicable to stamp duty (SDLT) and you do not pay council tax when the property is operated as a holiday let. Applicable for all owners who are able to rent their property for more than 210 days per annum. 

Of course, that’s not all the reasons to take the plunge, but hopefully a few to help sway your considerations. Our expert-led team are on-hand Monday-Saturday and they’d love to hear from you.

Contact us today to find out how we can help create a personal and assured investment, tailored for you.

T: (+44) 0113 833 0780

E:  info@holmeshaw.com

Holmeshaw, providing confidence in your investment since 2019.