Should you Buy a Holiday Lodge in the UK?
Traditionally purchased for personal use, the impressive performance of the domestic holiday market in the UK over the last few years as holidayers begin to embrace domestic staycations as opposed to overseas holidays has seen investment in the sector increase massively. As a result, the market has transformed into an extremely strong investment class, offering investors above-average returns on their investment for lower purchase prices than alternative avenues.
Holiday Lodge Investment with Knight Knox
As the domestic UK holiday market continues to thrive, even after the COVID-19 boom, the holiday lodge investment market in the UK is proving to be one of the most profitable avenues for investors looking to diversify their property portfolio.
With this in mind, we have expanded our portfolio to offer investors the chance to purchase luxury holiday lodges in the UK’s leading domestic holiday locations. Take a look at our latest opportunity below!
Investment Opportunity: Landal Barnsoul
Introducing an exciting new opportunity for investors, our latest property investment is the purchase of luxury lodge plots at Landal Barnsoul in Scotland. Set amongst 160 acres of the stunning Scottish countryside in the heart of Shawhead Dumfries and Galloway, Landal Barnsoul is a range of new build, luxury lodge plots consisting of 1, 2, 3 and 4 bedrooms. The holiday park will feature more than 200 lodges to be completed by Q4 2023. Landal Barnsoul will therefore be an upmarket holiday resort completed to an exceptionally high standard.
Lodges at Landal Barnsoul offer a rental guarantee of 8% NET for 5 years and a 110% compulsory buy-back after those 5 years. This means that investors will receive continuous rental income throughout the rental guarantee before being guaranteed an increase in sale price upon completion of the guarantee, equating to a total guaranteed 50% increase on your initial investment.
Investment Opportunity: Sandy Lanes
Sandy Lanes Resort is situated on the clifftop of the Isle of Wight’s west coast, approximately 8.5 miles from Newport. It comprises 63 luxury lodges constructed to the highest British standards, ensuring that guests and investors receive an end-to-end professional experience from the Royale Resorts team. Sandy Lanes provides a chance for investors to capitalize on the expansion of the UK staycation market, along with the assurance of a long-standing heritage that spans over 75 years.
Lodges start from just £275,000 and offer a rental guarantee of 10% for 5 years and a 100% compulsory buy-back after those 5 years – equating to a guaranteed ROI of 50%. Investors will also benefit from 2 weeks of annual personal use included in the purchase.
Holiday Lodges for Sale – What to Consider:
Returns: As with any investment, the most important aspect you need to consider is the potential return on your investment. In the case of holiday lodges, the majority of your return will be in the form of rental income. Some lodges are even sold to investors with premium rental guarantees that ensure a set amount of rental income for a specific period of time.
Location: When investing in holiday lodges, to maximise your income you want to ensure that your lodge is consistently booked up so you receive rental income on a consistent basis. With this in mind, it is essential to invest in popular locations that record high levels of tourism.
Amenities: Another factor in ensuring that your lodge is consistently booked is the amenities of both the lodge itself and the overarching site. The wants and needs of those looking to holiday within the UK have shifted in recent times, with holiday homes featuring amenities such as hot tubs, smart TVs, games rooms and bar areas extremely sought-after nowadays.
Build-specification: To ensure your investment not only holds its value but actually appreciates over time, it is important to invest in lodges with high-quality build specifications as opposed to traditional holiday homes like caravans.
Are holiday lodges good investments?
Holiday lodges are an excellent investment option for property investors looking to diversify their portfolios. The domestic UK holiday market is set to see a largescale boom over the next 5 years with the UK staycation a strong alternative to an overseas vacation – resulting in luxury holiday lodges being let for a premium and offering higher returns.
Do holiday lodges go up in value?
Typically, your traditional caravans and lodges may depreciate in value from the moment they are purchased, however high-quality, new-build investments must meet the same requirements as traditional new-build properties. This higher quality can result in these kinds of assets appreciating in value in the coming years.
Can you make money from owning a lodge?
Yes, you can make a lot of money from owning a lodge. Holiday lodges for sale are predominantly aimed at people who are looking to purchase a lodge with the intention of using it themselves during the holidays, however, investing in a lodge with the sole intention of renting it out throughout the year can result in extremely high returns as many holidayers continue to choose a UK staycation as opposed to abroad trips.