Keep The Cost Of Investment Down With Dream Lodge

6th March 2017

When it comes to choosing the perfect home, it is all about location, location, location. Not only should a property be in a desirable area, but it should have access to all essential amenities, and a few luxuries as well. Every little thing can push the value of an investment property up, providing the shrewd entrepreneur with a valuable long-term asset.

However, highly desirable locations can also push the initial cost of your investment up too, reducing the overall return on your outlay. This does not just mean the actual buy-in price, either, but all the additional costs too, such as stamp duty. Fortunately, Luxury Lodges at Elm Farm Country Park represent a wise investment with guaranteed returns and small initial outlay.

Stamp duty – a sizeable cost for property investors

Depending on where in the UK you buy a second home, stamp duty can account for a considerable chunk of your investment sum. That is essentially ‘dead’ money that will not deliver any return. While every investor expects to pay some costs to secure a good addition to their portfolio, the aim is to keep those costs down to an absolute minimum.

New legislation brought in by the then-Chancellor George Osborne in April 2016 added an extra 3% to the amount of stamp duty levied on anyone buying a second property, whether it was purchased as a retirement or holiday home, buy-to-let, or as a property investment. That additional 3% equates to around £6,000 on a £200,000 purchase or a hefty £15,000 on a £500,000 property.

Avoiding stamp duty altogether

There is a way of avoiding stamp duty on a property purchase, though, and that is by buying a Lodge from The Dream Lodge Group. Because they typically come in under the current threshold for stamp duty, our Luxury Lodges incur no stamp duty. And as they do not fall into the same category as average bricks and mortar ‘buy-to-let’ second property purchase, they are not eligible for the new stamp duty levy, either. This means that investors can save around £6,000 on each investment, as well as seeing an estimated 8% return on each property, guaranteed for three years.

Making every pound count

By making that considerable saving on stamp duty, investors purchasing The Dream Lodge Group holiday homes can then spend a little more on customising each property. It has been shown that extras such as hot tubs and saunas can considerably increase the rental value of a holiday let, boosting returns by as much as 89% for top end Luxury Lodges. Fortunately, at Elm Farm Country Park there are opportunities for smart investors to include premium quality holiday lets in their property portfolio, delivering exceptional returns year on year, and saving on those initial purchase costs as well. There has never been a better time to invest with The Dream Lodge Group.