What could be better than having spectacular scenery, seaside towns and award-winning beaches on your doorstep? Choosing to invest in a holiday home near the Dorset coast can be rewarding personally and financially.
With the obvious benefits of escaping city life and connecting with loved ones, property investment can generate income, supplement savings in retirement and provide a legacy for your family.
"We're proud to be involved in a community that gives so much back to the local area"
Smart savings on stamp duty and VAT
Choosing to invest in a property freehold at Silverlake comes with a tidy tax saving. Silverlake owners are purchasing a freehold plot, leading to a far lower tax bill compared with buying a ready-made holiday home.
The tax saving can be considerable. For example on a £250,000 plot, the stamp duty payable is just £2,500; there is no 3 percent surcharge to pay.
All holiday homes at Silverlake are self-build, meaning VAT is zero-rated on the construction of the holiday home, saving thousands on the cost.
An ethical investment
Whilst smaller villages and seaside towns are becoming increasingly overwhelmed with the rise in visitor numbers over peak dates, Silverlake is a sustainable, purpose-built development so there is minimal effect on the environment and surrounding communities. As the estate is self-contained, it avoids creating an off-peak coastal ‘ghost town’ and will not price the local population out of the housing market.
Habitat First Group’s ethos is to protect and nurture the natural environment, with Silverlake built on a former quarry which is now a flourishing nature reserve.
Investment as a holiday let
Holiday lets are an expanding market and with growing concern in the international travel industry, consumers have opted for more UK holidays, making it a great time to think about a holiday rental investment.
When choosing to invest in a holiday home, location is key; owning accommodation minutes away from the world-renowned Jurassic Coast would ensure plenty of visitors throughout the year.
Short-term holiday lets can be much more profitable than longer-term lets, given that you can charge the same for a week’s holiday as you can for a month’s long-term let. The rental yield you can obtain from a holiday let can be up to 30% greater than a standard buy-to-let annual 8% return.
Significant tax benefits
Tax benefits for holiday lets are not afforded to buy to let landlords, making a huge difference in profitability. A holiday let can be treated as a business for tax purposes, whereas a buy-to-let is regarded as an investment giving rise to investment income. Unlike the latter, owners of holiday lets can deduct the entire cost of their mortgage interest regardless of other income. Holiday lets are subject to business rates rather than council tax.
You are eligible for tax benefits if your holiday let is available for at least 210 days a year and let out for a minimum of 105 days each year. Of course, individual circumstances are unique, so professional tax and investment advice should be taken.
Choosing a trusted and reliable management agency is key to the success of any holiday let investment. Partnering with experts like Habitat Escapes, the on-site specialist for Silverlake owners, can make your property investment journey painless by providing a complete management and maintenance service.
So, whether you're looking for a personal investment, a financial gain, or looking to leave an inheritance for your children, Silverlake offers a chance to buy a luxury lakeside holiday home that ticks off everything on your property investment wish list.
