Lodge Ownership vs Buy-to-Let
The information provided here is intended for investment customers only. If you wish to purchase a holiday home as a lifestyle choice primarily for your own use, please see our separate Lifestyle pages. The Dream Lodge Group is not authorised to provide financial advice. You should seek independent legal, financial and taxation advice as appropriate in connection with any planned investment.
Property has been considered one of the more attractive investment options. The first choice of many people investing in property has traditionally been a buy-to-let. However, we believe there are elements of owning a lodge which makes it an attractive option which far exceed the income generation potential of buy-to-lets whilst removing all of the foreseeable risks which eat away at the bottom line.
At the time of going to press, the average price of a house in Britain was £272,000 following three consecutive months of double-digit price increases (Source: Guardian Sept 2014). The price of entry into the buy-to-let market is very high.
Entry into Lodge investments start with as little as £50,000 for an 8% return on investment.
In a buy-to-let property you may well have problem tenants which can be a nightmare if they fail to pay the rent or cause damage to the property.
With a Lodge there are no problem tenants and no anomalys.
In a buy-to-let you property will almost certainly have “void” periods. Most experienced landlords assume about four weeks a year, which cuts your rent by about 7%. This is one reason why many landlords own several properties, spreading the risk across several buy-to-let homes.
With Lodge investments we eradicate the uncertainty through booking virtually all available weeks. This is due to the high demand for luxury holiday Lodges and the shortage of this type of property within the tourism sector.
Entry costs can be high. These are between 5% and 10% of a property’s actual purchase once you factor in stamp duty, solicitors’ expenses, maintenance and decorating costs and conforming to all legal requirements.
With Lodge investments there are no start up costs, solicitor’s fees or stamp duty. All our Lodge investments conform to all legal requirements upon handover.
Looking after a property can be a full-time job especially if you have demanding tenants. You can always ask a letting agent to manage on your behalf but will a letting agent be close enough to the tenants to see how they are treating your property?
With Lodge investments we are on hand 24 hours a day, 7 days a week, 365 days a year with permanent qualified staff on hand caring for your investment.
We feel that our marketing skills and high maintenance standards are second to none. Your Lodge is cleaned and inspected by our Operations Team every week so we are always close at hand.