Holidays & Investment In Scotland - Monday 08 June 2009
By Suzanne Farmer
Why do so many of us fly off overseas for our holidays when Scotland can offer pretty much any type of holiday we could ever want? From short breaks in bustling cities to a week spent combating the stress and strains of modern living in a remote croft in the Highlands or chilling out in a cottage on the western isles where the peace and quiet envelops you, the sea is a brilliant blue and the scenery and wildlife are beyond spectacular.
Investing In Holiday Homes - Why & Where
If you're considering purchasing a property as a holiday home for yourself, as well as for renting out, then, with all that Scotland has to offer the holidaymaker, investing here makes perfect sense. There's even more good news with an increase in demand for British holidays in 2009, thanks to green issues as well as the omnipresent credit crunch.
Among the reasons cited as influencing prospective buyers to select second homes in the UK rather than overseas are convenient to travel to, better investment opportunities, a preference for the British culture and climate and the fact that there's
no language barrier to worry about.
Of course, one of the major advantages of choosing to invest in a holiday home instead of a conventional buy-to-let is that you get to enjoy the property too - set aside your chosen times to visit and then look to rent the property out for the other weeks to help recoup your investment.
Whatever your budget and tastes you should be able to find something that ticks all the boxes - from log cabin to caravan, from waterfront apartment to remote country cottage.
Probably the first decisions to make when purchasing a holiday home are the amount you want to spend and where and on what you want to spend it.
Some areas of Scotland are very much all year round visitor destinations so if you're thinking of investing in property to rent out then it makes sense to choose just such an area to maximise your rental opportunities. With this in mind somewhere like the Scottish Highlands is a great place to buy - prices offer great value, the scenery is breathtaking and there's a large potential holiday market. The Highlands are Scotland's all year round playground - walking, climbing, skiing, fishing, bird watching, hunting, mountain biking, whisky and castle trails and much, much more.
When choosing the area that's right for you, search out pockets of opportunity within the market by tapping into local expertise, visiting attractions and chatting to staff and holidaymakers. In general, try to get as much advice on where to buy, the type and amount of holiday demand there is and how much it's affected by seasonality.
What To Buy - Choosing A Property
So, where do you start? After you've sorted out your budget and pinpointed the area you want to buy in, you need to put your business hat on and think in terms of what visitors will be looking for. It's easy to get swept away in the excitement of it all but you still need to remember:
Approach the market from a holidaymakers point of view rather than just your own. Has a property got character and appeal? Is it in a great location? Location is all-important when it comes to holiday homes - waterside properties and those with easy access to key attractions or amenities such as spas, golf or great restaurants are particularly popular. Can the garden be easily managed? What's the parking like? Thinking like this will help you to make the right decisions every time.
When working out the finances and attempting to balance your outgoings against incomings remember to factor in any holiday cottage agency fees, taxes and insurance as well money you'll have to pay for a regular cleaning and maintenance service.
Always allow logic to override emotions when considering an investment!
Sorting out the finances, complying with legislation and getting appropriate insurance cover in place are all important things to add to your to-do list, as is deciding how to promote the property to potential holiday makers. Draw up those checklists and start doing your research now!
Caravans
Static caravans are a great way to dip your toe in the market and get your very own holiday bolthole on a small budget. You just choose whether to go for a pre-owned but lovingly cared-for caravan that offers incredible value at around £10,000 or a brand new top-of-the range model that could set you back around £45,000. There's a huge range of holiday parks, with great facilities, to choose from so you're bound to be able to find the right place on the right budget.
Lodges
The log cabin is a particluarly popular choice of holiday accommodation in Scotland and many country estates have, in recent years, invested in a whole new generation of five star lodges that come furnished and fully equipped with all mod cons, from top of the range fitted kitchens, to satellite TV and even private saunas or hot tubs.
If you like the sound of the new style of timber lodge, the flexibility and freedom of having your own space and peace and quiet in a detached lodge, then you may be interested to discover that many of the estates and holiday parks have lodges for sale outright or on seasonal ownership packages at very reasonable prices.
There are many resorts, ranging from the small and intimate where the emphasis is very much on the scenery and the peace and quiet, through to five star resorts with a wider selection of amenities such as restaurants, bars and swimming pools.
Buying a timber lodge gives you the chance to own your very own rural escape, designed, furnished and equipped to top modern standards, sometimes for less than £100,000.
Spa & Sporting Resorts
The famous country house hotel Gleneagles, enjoying some 800 acres of stunning Perthshire countryside, offer the luxurious amenities, golf, spa and dining of a five star resort combined with affordable seasonal ownership at Glenmor.
Buying a seasonal ownership package for one of these ultra luxurious properties opens up the amazing and highly exclusive facilities of Gleneagles whenever you stay. The packages mean that you choose one week each year when you enjoy a holiday in this spectacular place, with a lease for the next fifty years or so - brilliant value and a top investment opportunity - from around £20,000.
Equipping & Preparing
In general, if you've bought a new property then there's a good chance it will be in excellent decorative order and well equipped. Some options even allow for the property to be furnished for you. If it's an older property you've decided upon then wield the paintbrush and create a bright, fresh, clean and neutral backdrop - no radical paint schemes or strange décor please as these often put people off!
Next you'll need to check with your local council and tourist board, as well as your cottage agency if you're using one, as to what the legal requirements are regarding everything from fire alarms and extinguishers to health and safety. Make sure you've got details on all the latest holiday home legislation and that you've achieved everything you need to in order to rent your property out safely and legally.
Making it Work
Once you've purchased your property you'll be looking to market it to potential holidaymakers. Some people prefer to handle all of this themselves, setting up a user friendly website with internal and external pictures to really sell the property and the complete experience of holidaying there. If you can arrange for online availability and booking through your website then that makes it easier and quicker for people to reserve their holiday and means you don't have to deal with loads of phone calls and emails enquiring about which weeks still have space.
When choosing a company to market your property consider:
Speak to several agencies before making a decision. Many agency websites have special sections where you can access information about registering and renting your property through them. Some agencies specify if they're looking for properties in certain areas on their sites, e.g. Rural Retreats is currently looking to take on properties located in the Scottish Highlands.
Fees and services offered can vary considerably so do your research carefully.
Try to find out how much specialist knowledge an agent has of your chosen area in order to really sell your property to potential holidaymakers.
If possible seek references or the chance to chat with others who have been renting their properties with the agency for a while.
Some agencies offer free pre-market advice designed to help you get your property into the best possible shape before you start to rent it. In some cases cottage/lodge agencies can even help you out with business planning and income forecasts.
Ensure that there will be clear understandings, or contracts in place, when it comes to cleaning, emergency repairs, the key point of contact for guests, general maintenance, looking after gardens etc.
If you're looking to register your new holiday property with an agency or tourist board then you might want to visit these websites for useful ideas and information:
Scottish Country Cottages - www.scottish-country-cottages.co.uk
Unique Scotland - www.uniquescotland.co.uk
Rural Retreats - www.ruralretreats.co.uk
Mackay Cottages - www.mackays-self-catering.co.uk
Blakes Cottages - www.blakes-cottages.co.uk
Visit Scotland - www.visitscotland.com
