Making Money From Your Second Home
With the Olympics causing a surge in demand for holiday cottages, we find out from Mat Faraday if the trend for “staycations” is a flash in the pan or a good long-term investment plan. Are holiday cottages in the North Cotswolds benefitting from the 2012 Olympic Games being held in the UK?
So is now a good time for owners in the North Cotswolds to think about letting out their second homes as holiday cottages?
Yes, we think so. The government has used the Olympic Games as the basis for a global advertising campaign, encouraging tourism to all regions of Britain. We have always marketed our cottages internationally and we are seeing a noticeable increase in the level of foreign bookings this year.
Definitely. Well managed, premium holiday cottages in the Cotswolds will make money in all economic climates. With the cost of running second homes constantly increasing, now is a good time to turn an under-utilised liability into a profitable asset, which owners can still use when they wish.
So is the North Cotswolds always a popular destination for overseas tourists? How do exchange rates affect these visitors?
What is it that makes you believe you have found the key to long-term success for your clients?
The Cotswolds region has always attracted large numbers of overseas tourists, who love the quintessentially English countryside and villages. The relative weakness of the pound against other major currencies is a positive factor at the moment; however, the Cotswolds will always be popular with affluent overseas visitors.
Put simply, we view each property as an individual business, with the objective of maximising each owner’s profits. Unlike a traditional agency, we are very pro-active, constantly reviewing booking levels at every property, adjusting pricing, running bespoke promotions, setting up special featured listings and adjusting discounts, to make sure each property achieves its full potential. We also work with owners to identify opportunities to maximise their profits and we only charge a fixed commission percentage on the revenues we generate – no administration fees, charges for photographs or hidden booking fees. By offering an optional suite of management services, our owners are free to leave the management of their properties entirely in our hands, if they wish. A number of our owners live abroad, happy in the knowledge that their prized
What about “staycations”? In these tough economic times, are more people staying in the UK for their holidays? We think there has been an increase in people staying here, in particular for second holidays. The Cotswolds is an all year round market for holiday cottages, driven by events, such as birthdays or reunions, as well as main family holidays. That has made the holiday cottage market in the Cotswolds very resilient to the economic downturn.
asset is being looked after and earning them money, whilst also generating long-term capital growth and a “pension pot” to come home to one day. If money was no object and you were going to purchase a property for holiday letting, what would you go for? All other things being equal, the more guests a property can accommodate, the better the economics work for holiday letting. This is primarily due to scarcity value, as there are far fewer holiday cottages that sleep 10+ guests than sleep 4-6 guests. We would also look for an abundance of character, a good location and a layout that is practical for a variety of guests. Something like Rivendell House, for example, featured in this magazine and offered for sale at £650,0000, would be a great choice for a holiday let property.
Andy Soye Character Cottages
Mat Faraday Character Cottages Visit Character Cottages website: www.character-cottages.com, or talk to them on 0844 870 8532 or e-mail them enquiries@character-cottages.com
www.cotswold-homes.com
57