Holiday Lettings In The UK

Hi Everyone,

I hope you have had a great week.

For the last couple of days, 20 and 21 April 23, I attended some intensive VIP property training being given by a top UK property guru, Aran Curry, who is himself the owner of around 200 properties in the UK.

Aran Curry is the only one of many UK property gurus who proposes this strategy which is the preparation of large, usually 8+ bedroom houses for letting as multi-generational holiday lets.

The particular attraction of this strategy is that there is very high profitability and a high return on investment, in excess of $30k per annum from each property, just in terms of cash flow.

Apart from Cashflow, there are other property levers that apply to property, which we will discuss separately, but which are:

Discount on the purchase price.

Capital appreciation, increased equity in the building.

The ability to refinance the property.

The capital required to invest in such a money making machine is ideally less than $500k, but sometimes more, up to around $700k, so as to secure a property of the right capacity in the right area.

The location is important and needs to be a known holiday destination, with the possibilty to emulate the success of other holiday let properties already in that area. So this is not pioneering, it is following an established profitable business model.

Aran suggests certain locations or areas that are acceptable, and what you need to do is find the right post or zip codes where these sort of properties are available to buy at the right price.

Sometimes the most suitable buildings are already being operated using another business model which is that of the Bed and Breakfast hotel, where the owner resides and services all the rooms and guests, which may be an onerous way of making a living.

This model would involve re-purposing the Bed and Breakfast establishment to be offered as a single dwelling for multi generational holiday lets, where the family rents the building as a whole for the required time period.

Such multi generational holiday lets are popular in the UK and the key is to find the building in the right location where it will be a popular booking destination. There probably will be similar properties already operating successfully within 3 miles of your proposed site.

So this is a business model I am seriously looking into as the profitability is proven and there is a sweet spot between 16 and 20 persons to be accommodated.

Not all of the bedrooms need to be ensuite bathrooms, but there needs to be adequate provision of bathrooms and toilets for the size of the building and the planned number of guests 16-20.

Ideally, the dining room must be capable to seat up to 20 persons at a family meal, and there must be 1 large lounge or 2 smaller lounges that can also seat up to 20 persons.

If you are looking for high returns on your property investments, then contact me to discuss how we may be able to help you to achieve your goals for returns on investment.

Alternatively, if you are a property owner with a large building suitable for such holiday lettings, and you dont have the money to carry out the necessary conversions and refurbishment, then contact Alan at Alpus Group to find out how we may be able to help you.

We love to find WIN WIN solutions for property owners who have a problem and property investors who would like great returns on their investment funds.

I hope you found this unusual property investment strategy of interest.

Enjoy your weekend, wherever in the world you are .

Cheers

Alan