Can anyone offer investment certainty in uncertain times
/In this article, we are going to take a closer look at the reasons why Holmeshaw Property Investments offer investment certainty in uncertain times.
We all know that everything has been going on during the last 12-18 months.
You can see the difference in your outgoings – mortgage payments, food bills, energy prices.
In times of uncertainty, where external factors such as inflation put more and more pressure on household budgets, those with cash to invest are searching for a certain return on their investment.
So why choose a Holmeshaw Property Investment?
The rise of the UK staycation
Investment funds have known about the benefits of holiday lodge investments for many years through searching investment markets for opportunities where their money will generate great returns and also be safe from economic and market fluctuations.
Following the pandemic, the UK staycation became even more popular as people wanted to experience the great outdoors without the hassle of travelling abroad.
The UK staycation has continued to grow, with many holiday park operators announcing multi-million-pound investments in upgrading and new facilities during the last couple of years. A decline in the demand for overseas holidays has led to increased demand on home soil.
The impact of Brexit and COVID-19 on travel requirements, the rising costs of flights following fuel increases the need for airlines to recoup their pandemic losses, and the travel chaos following union disputes and staff shortages have all resulted in UK holidaymakers opting for a holiday here in the UK.
At Holmeshaw, we want our clients to have certainty when they invest their money with us.
We choose investment locations where there is a consistently high demand for holiday rentals, such as our furnished holiday lodge investments so that they can benefit from a high yield along with good prospects for capital growth.
You can read more about what we found when we examined why the UK staycation market continues to provide a sound investment opportunity for our clients in the article ‘Why the UK staycation market is a sound investment’.
Due diligence
At Holmeshaw, our promise to all our clients is that we wouldn’t recommend property investment opportunities we would not invest in ourselves.
Our hands-on approach means that we undertake thorough research into the developer, the holiday lodge operator, and site management - whatever it takes to give our clients peace of mind when investing with us.
We won’t offer a project until our research is complete and we are satisfied with the track record of our partners and the investment opportunity on offer.
We provide a tailored service, so the financials must present certainty for our clients in yield and capital growth.
You can learn more about our research behind the scenes before a property investment opportunity even makes it onto our shortlist in our blog titled ‘Due diligence for property investments’. We tell you about the research we undertake as well as offer recommendations for your own research to make sure that property investment is the right choice for you and your circumstances.
Investment certainty in uncertain times
As inflation has gone up during the last year and a half (reaching a high of 11.1% October 2022), the buying power of money has been reduced, and no savings account can offer an equivalent amount of interest to make sure that your original investment can keep pace with inflation.
Even as the inflation rate has started to fall (according to the Office for National Statistics, the Consumer Prices Index (CPU) rose by 6.7% in the year to August 2023), interest rates on savings accounts are even lower.
According to the Which? Money newsletter October 2023, the top five-year fixed-rate savings account was offering a rate of 5.8%, below the current inflation rate.
Property investments can prove beneficial during times of financial uncertainty.
Although there may be a short-term effect through rising interest rates on mortgages, as a long-term investment, property will eventually return to the level of its relative value in proportion to other goods within the economy.
If you are considering property investments, at Holmeshaw, we can provide even more certainty than the property market in general.
This is because our furnished holiday lodge investment opportunities have fixed maintenance costs and ground rent for the duration of the contract, meaning that the high yield of 8% net rental is a certainty, even during financial and economic uncertainty.
Our holiday lodge investments are for the medium term, generally over five years, with buy-back options included, so again, they offer more certainty for investors than property investments where buyers have to be found in the local market.
An example of the financials
For example, if we take a look at the financials for our holiday lodge investment opportunity at Woodlakes Retreat @ Norfolk, you can ride the inflation wave safely, with an annual return of 8% for five years, which is higher than the current interest available on five-year savings accounts.
Initial cash investment of £179,000 for a Sky lodge, sleeping six·
Offering investors from 8% NET rental income (£14,320 p.a.)
Total return on investment over five year period of £76.022
No stamp duty
Buyback option at 110%
We have worked with this park developer for more than three years, so have completed our due diligence for rental income and to ensure that all contractual obligations have been fulfilled on behalf of our clients.
Each furnished holiday lodge investment generates £35-45,000 at 80% occupancy, and ground fees are FIXED while all operational costs such as the management and advertising of the rental are managed for you by the site management team.
This gives our investors a completely hassle-free property investment, returning 8% yield or between £14,320-£16,000 p.a., depending on the type of lodge.
Unlike, general property investment or savings accounts, the annual income is a sure thing, offering more than the rate of inflation over a sustained period of time, to ensure that your money is growing and worth more in buying terms than when the initial investment began!
If you would like to profit from investment certainty in uncertain times, why not get in touch with us at Holmeshaw today, so we can discuss the Woodlakes Retreat @ Norfolk resort cited in the example above, along with our other holiday lodge investment opportunities?
Holmeshaw encourages investors to seek advice from a financial advisor before deciding to invest their capital into property or any other form of investment.
