Friends and family members are coming together to invest in a holiday home
Carol Peett, the managing director at West Wales Property Finders, has seen an increase in this arrangement in Pembrokeshire. Last year 12 multigenerational families sought to buy together, in 2016 it was three. Before 2016, when the 3 per cent surcharge hit, she had no such inquiries.
“People are clubbing together to buy something nicer and share the running costs,” she says. “Usually these families want to rent the property out and, with the increased attraction of staycationing, you can make good money doing this. If you get somewhere nicer, close to the beach, your letting potential is increased, compared with getting a smaller place or one that is inland.”
Often it’s the grandparents paying the most, with parents making up the rest, although Peett has had a City-banker couple pay three quarters of the value, with the grandparents making up the rest.
These families look for two cottages next to each other, or a home with an annexe. This way everyone can holiday together and everyone has their space, or they can holiday separately, or the grandparents can holiday in the annexe while renting out the rest of the house.
The traditional staycation locations work best — where there is strong demand for rental and managing agents to oversee the rental process. As a rule of thumb, Peett suggests the yield for Pembrokeshire holiday homes is between 7 and 9 per cent, though it depends on how long the home is let for during school holidays. If the families have school-age children the yield tends to be lower; university student children, who can holiday at different times, make for a more profitable holiday home.
If you are looking to purchase a holiday home in Pembrokeshire, Carmarthenshire, Ceredigion or Gower, or indeed move here, do call West Wales Property Finders on 01834 862816. We can help you find and secure your perfect property, plus carry out the negotiations and micro-manage your purchase for you; thus saving you time, money and stress. You also gain access to our “little black book” of recommended surveyors, solicitors, tradesmen, letting agents, etc. which our clients all find is invaluable when buying in a new area. http://www.westwalespropertyfinders.co.uk
https://www.thetimes.co.uk/article/join-the-sharing-economy-v5htvhgld – The Times Bricks & Mortar – Friday, 16th February 2018