Part of many peoples retirement plan has been to become a landlord. Enable’s IFAs have had many conversations about how the UK Government has made it harder for buy-to-let landlords. This means that people are looking to find other sources of income to help boost their retirement income.
Some people have been turning to holiday lets to see if they can generate the income they want in retirement. Buying into a holiday let is an ideal investment as the kind of income that can be generated from letting can be significant and the capital is protected as it could always be sold if needed.
Alongside the financial benefits of a holiday let it can also offer a focus of interest, many who run retirement lets enjoy meeting guests and running a small business they often say the activity helps keeps the family on their feet.
But there are downsides there are of course the monthly cost of running a holiday let as well as replacing stuff and repairs. While you won’t need to pay Council Tax, you will probably need to pay Business Rate Property Tax, so this needs to be factored in. If you are thinking of looking at investing in a holiday let make sure you research the booking value of the local area, as some locations can be extremely popular, and consider how often you need to access the property for maintenance.
Enable’s IFAs in Bishop’s Stortford can help you make sure you have the right mortgage for a holiday let and can take advantage of any tax benefits. You also need to make sure you have got the right insurance policy for a holiday let.
As with any investment taking care of the details is important and if you are renting out a holiday let it will be the little things that count with your guests too. Make sure you are interested in the details if you are looking at a holiday let to boost your retirement income.