The Golden Rules For Investing In Luxury Lodges

20th March 2017

The demand for self-catering holidays in the UK is on the rise, contributing around £4.5 billion to the country’s economy every year. One of the biggest growth areas is luxury self-catering in bespoke lodges that offer much more than a simple kitchenette and fold-out sofa bed. Luxury Lodges, such as the collections you will find at The Dream Lodge Group’s enchanting Lazy Otter Meadows park, are in high demand. So if you are planning to add one of these Lodges to your investment portfolio, what should you bear in mind before you buy? Here are a few golden rules.

Location, location, location

As with any property purchase, the right location is crucial. Popular holiday areas will give you a year-round return with consistently high levels of occupancy, even during the off-peak periods. East Anglia, including Cambridge, is a perennial favourite for both UK and international visitors, and a tranquil haven close to the ancient city of Cambridge is bound to draw visitors throughout the year. So Lazy Otter Meadows definitely ticks the location box.

The right property with those essential extras

If guests are paying for a self-catering option that offers a little extra in the way of luxuries, then it is important to ensure your Lodge does not disappoint. Because every one of The Dream Lodge Group’s Luxury Lodges is built to the customer’s specifications, you can add those essential finishing touches such as bathroom hot tubs, four-poster beds and walk-in wardrobes that guests expect from a 5-star self-catering option.

Treat it as a business, not a hobby

If you want to see a higher return on your investment, then you will need to ensure that it is fully furnished and available for let for at least 210 days per year, and occupied for at least 105 days per year. This will entitle you to certain tax breaks as the property is then considered to be a Furnished Holiday Letting. It will also mean that your Lodge generates maximum return.

A higher return than other investment opportunities

At The Dream Lodge Group, we guarantee an 8% return for a minimum of three years, making a Luxury Lodge one of the highest yield returns in any property portfolio. That is considerably higher than any schemes offered by banks or building societies. You also have the added advantage of using the Lodge yourself for at several weeks of the year if you so wish.

A hassle-free rentals programme

The Dream Lodge Group not only supply bespoke, 5-star Luxury Lodges, but they can also act as your letting agent as well, taking the hassle out of details such as advertising, taking bookings and ensuring the Lodge meets Health and Safety standards. Remember that fees paid to a letting agent are also tax-deductible, making it a cost-effective venture with high-yielding returns all year round.