Property News: Holidays Lets vs Buy-To-Lets

Join your host Kevin as he discusses everything that’s been happening in the property industry this week as well as news from the progressive property community. Today Kevin discusses how the rise in staycation popularity  is likely to see an influx of holiday let investments, how low interest rates have further proven why property is a great investment choice and why diversity within a property portfolio can lower the investment risks.    KEY TAKEAWAYS  Property News: Landlord Today described six reasons why the staycation sector may be a good bet for property investors, despite recent lockdowns restricting tourist travel and hitting owners' income. The growth of staycations means the holiday let sector is now a potentially long term investment opportunity.    For holiday let properties considered a furnished holiday let that is let 105 days or more a year, there are allowances and tax reliefs. You can deduct costs such as mortgage interest and letting agency fees from pre tax profit and there may also be tax advantages for kitting out a property.    As a furnished holiday let owner, you will need to register for business rates which are generally cheaper than council tax. Holiday lets are a low risk strategy, with payments upfront there is no financial risk of non payments compared to long lets because the guest pays before they stay.    There are several reasons why investing in property this year is a good idea. Firstly, in a bid to restore the economy interest rates have dropped as low as 0.1% to encourage both consumer borrowing and spending. Secondly, if 2020 has taught us anything it is the resilience of certain investment assets over others that has delivered the returns, and nothing is better than property for that.    Having a variety of assets means investment risk is significantly lowered. We have consistently seen that single assets do not match the performance of a diverse and well balanced portfolio. In property, diversification can be achieved with a single asset. One portfolio could include different types of property or include the same property in different areas, or both.     Progressive Community: If you get a builder to do a job, agree upfront when he is going to get paid. Speak to the builders before they carry out the work for you and ask them when they would like to get paid. Ensure that you deliver on that time so that you continue to work in harmony together.    BEST MOMENTS  “An investment you can enjoy. Owners can stay in their property as well as letting them at other times.”   “Owners are seeing returns of between 4%-6% after costs.”   “Property will be the best investment for 2021” SUBSCRIBE TO THE A NEW INVESTMENT SERIES Episode One: How to Perfectly Invest £10,000 | The Best Stocks | Property | Gold & Classic Cars Watch Live On The Progressive Property YouTube Channel Every Monday At 7 PM Tiny.cc/PPTV Listen To Audio Recordings On The Money Podcast bit.ly/moneypodcastitunes ABOUT THE HOST Kevin McDonnell is a Speaker, Author, Mentor & Professional Property Investor. He is an expert when it comes to creative property investment strategies. His book No Money Down: Property Invest talks about how to control and cash flow other people’s property to create financial freedom.   CONTACT METHOD https://www.facebook.com/kevinMcDonnellProperty/ https://kevinmcdonnell.co.uk/   See omnystudio.com/listener for privacy information.