Holiday homes will be the next buy-to-let boom. Why?

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• Income from holiday lets can be significantly higher than returns from other property investments such as buy to let.

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• Entry into lodge investment is very low (we start at £99,000) in comparison to entry into the buy to let market. With Lodge investments there are no startup costs, solicitor’s fees or stamp duty. All lodge investments conform to all legal requirements upon handover.

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• No time consumption - no problem tenants - no hassle - any rare problems are managed for you by our on site management who regularly inspect and maintain the lodges. Bookings and marketing are all done for you!

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• Desirable tax breaks add to the appeal of holiday-home ownership – at a time when the Government is slashing tax reliefs associated with other property investments, such as buy-to-let.

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• Mortgage brokers say demand for holiday homes is growing. David Hollingworth, a mortgage broker at London & Country, said: “People know they will need to provide their own pension in the future, and this can be one option for delivering that income while also providing holidays for the family.”

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• If you operate under the “furnished holiday letting” rules, you can offset all expenses including full mortgage interest against the rental income. This compares with the scaling back of tax relief on buy-to-let from 2017.

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• Running a holiday let is treated by HM Revenue & Customs (HMRC) in the same way as any trading business, so losses can be carried forward and offset against future profits.

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• Furnished holiday lets also qualify for entrepreneurs’ relief, cutting any potential capital gains tax take to 10pc. Otherwise any taxable gain will be hit by an 18pc deduction below the higher rate threshold or 28pc above.

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