We're considering investing in a holiday let in Cornwall. Around £150k and we'd ideally be cash buyers although we might use a mortgage around 60-70% LTV.
Rental prices peak at nearly £800pw but only for a few weeks and it looks like ballpark we'd net 5% after fees but before tax on the income. Clearly less if a mortgage was involved.
Is this a decent proposition or for pure investment return would something else be better? This location has emotional attachment to us and is somewhere we'd likely visit ourselves but I don't want to cloud my judgement on what is meant to be a long term investment. It is a desirable area where demand is unlikely to diminish and supply is pretty limited.
I know lots of you own BTLs, do many of you have holiday let properties? What would you consider a reasonable minimum ROI?
Rental prices peak at nearly £800pw but only for a few weeks and it looks like ballpark we'd net 5% after fees but before tax on the income. Clearly less if a mortgage was involved.
Is this a decent proposition or for pure investment return would something else be better? This location has emotional attachment to us and is somewhere we'd likely visit ourselves but I don't want to cloud my judgement on what is meant to be a long term investment. It is a desirable area where demand is unlikely to diminish and supply is pretty limited.
I know lots of you own BTLs, do many of you have holiday let properties? What would you consider a reasonable minimum ROI?
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