If you’re considering an investment that blends leisure with profit, the question arises: Are holiday lodges a good investment? Here we look into the world of holiday property investments.
Captivating Returns on Investment (ROI)
Investors are drawn to holiday lodges for their impressive ROI potential. These properties offer a unique blend of rental income and personal use. With the rising trend in UK holiday rentals, your investment can become a dual-purpose asset.
Depending on the vehicle you have to rent out, you can expect anything from £400 to £850. Prices are usually charged depending on the number of people it can sleep, its location and the time of year. Generally, the Low Season runs from 1 Nov – 31 March, the Midseason is 1 April – 15 June and 22 Sept – 31 Oct and the High season is from 16 June – 21 Sept (this is where you can expect the best ROI per week rental).
Tax Advantages in the Hospitality Haven
One of the hidden gems of holiday lodge investments lies in the tax advantages. This adds a layer of financial attractiveness to holiday lodges, making them not only enjoyable retreats but also smart financial moves. In the UK, there are tax advantages such as:
- Furnished Holiday Lettings (FHL) Tax Benefits.
- Capital Gains Tax (CGT) Reliefs
- Income Tax Deductions
- Mortgage Interest Relief
- Inheritance Tax (IHT) Considerations
- VAT Considerations
- Stamp Duty Land Tax (SDLT) Considerations
- Pension Contributions:
- Entrepreneur’s Relief (now Business Asset Disposal Relief)
It is important to stay informed about changes in tax laws and seek professional advice tailored to your specific situation. Tax regulations can be complex, and a tax advisor can help ensure that you maximize available tax advantages while remaining compliant with current legislation.
Diversification: A Strategic Investment Move
Holiday lodges introduce a diversification element to any investment portfolio. Unlike traditional stocks or bonds, a holiday property acts as a tangible asset. In times of economic uncertainty, diversifying into real estate can be a stabilising force, shielding a portfolio from market volatility.
The Allure of High-Demand Tourism Spots
Choosing the right location is key to the success of any property investment. Opting for holiday lodges in high-demand tourism spots ensures a steady influx of potential renters. This demand-driven approach maximises a property’s occupancy rate, contributing significantly to your overall returns.
At Epworth Fields we are perfectly located in the head of North Lincolnshire’s beautiful countryside. There are many things to do in our local area and the area around our setting that entice people to visit and stay with us.
Flexibility for Personal Use
Beyond financial gains, holiday lodges offer the luxury of personal use. Picture yourself enjoying getaways on your holiday rental property while it appreciates. This dual utility sets holiday lodges apart from other investment options, providing a seamless blend of business and pleasure.
Conclusion
In the realm of investment opportunities, holiday lodges emerge as not just good but strategic choices. Their potential for high ROI, tax advantages, diversification benefits, and the allure of sought-after locations make them a well-rounded investment.
Make a move that resonates with both your financial goals and lifestyle aspirations. Consider the world of holiday lodges—an investment that promises returns and memorable getaways.
Buying at Epworth Fields
Homeownership at Epworth Fields can offer you a full 365 days of leisure use, meaning you can be at Epworth Fields whenever you like. We have a variety of luxury holiday lodges for sale near Lincoln on selected plots in our first phase. Please contact our team to find out more and choose your perfect holiday park home.
