Could buying a holiday home in Norfolk be a good investment?
With a weak pound, an upturn in the stay-cation and financial uncertainty, buying a holiday home is apparently the answer. It's exempt from stamp duty and you get to enjoy a few weeks break by the sea too!
Incredibly it's almost a year since I visited Mundesley Holiday Village, a former holiday park currently being transformed into a new site offering a variety of pastel coloured holiday homes behind smart white picket fences. The former park was hugely popular in the 1940s and 1950s but after this type of holiday dwindled in recent years, the site was bought by Timothy Hay of the Beeston Group and work started on four phases to create about 180 holiday homes including refurbished chalets, new builds and large luxury lodges. There are even plans to create a small selection of luxury penthouses with sea views. The homes are there to rent for holidays but on my revisit, what has become apparent is the increased demand to buy the properties as an investment. Joe Szomolanyi, general manager, has helped create a new investment scheme with a standard return whereby you take a one to four year term which provides a lump sum at the end of each year or a guaranteed 8% net return per annum over 10 years (paid annually.) Mr Szomolanyi said: 'With holiday home buy to let purchases there are no start up costs, solicitors fees or stamp duty, All our holiday buy to let purchases confirm to all legal requirements upon handover. They even come with the furniture pack ready to let. We think there is strong growth potential in the tourism industry in the UK, with Norfolk showing a 10% increase this year thanks in part to the A11 dualling, the exposure of Norfolk on TV due to Prince William and Kate moving to the county and the rise of the staycation.'
Certainly at Mundesley, the aim
is to give people what they want. The properties, which years ago would
have been extremely basic, are now very plush with fabulous interiors and en suites and gone are the communal entertainment facilities and canteen although as the site grows it is hoped if people want a leisure facility it could be provided. Since my last visit, 15 owners have bought and 12 buy to let investments have sold out of a total of 40 available. Planning permission has been granted for the first phase of luxury lodges, which really take this type of accommodation to a new standard and there is a newly designed website with everything from holidays to holiday homes and the buy to let available. When purchasing, you pay a £10,000 deposit and can choose the decor of your home interior and then the balance is due within six weeks. Properties under the buy to let scheme include the semi detached Anmer, with views to the windmill and boasting a gadget kitchen and open plan living area for £89,995 to the Felbrigg three bedroom end terrace for sale for £119,995.