Syndicate
) February 18, 2009 -- With growing evidence of the strong Euro giving an upsurge to the UK holiday industry many experts are predicting this to be one of the few positive stories in the current economic gloom and advising second home owners, and investors with funds in low interest rate saving vehicles, to invest in properties as ‘furnished holiday lettings’. Equally, many holiday letting companies are seeing a rise in investors putting capital back into UK holiday property.
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One shining success story in the gloom of recession has been Liam Gavin, Managing Director of luxury self-catering holiday company, Blue Chip Vacations, which represents over 500 handpicked 4 & 5 star rated properties across Devon and Cornwall (and has just signed the new development from Peter de Savary), each property chosen for its stunning location, amazing coastal or rural views or hi-spec interior.
Initially involved as a shareholder and advisor to the business when he and his family relocated from Dublin to Devon in 2002, he was soon invited to oversee the business’s marketing activities. Despite the relocation he initially maintained his business interests in Dublin, making regular trips back to oversee the Café Togo Group a concept chain of 7 cafes/restaurants which he had set up in 1997, (the first unit opening in Heuston Station, Dublin in July 1998), until a management buy out in 2006. In 2004 he became Managing Director of Blue Chip Vacations and began to restructure the company and grow its property portfolio. From 50 properties with sales of £500,000 the company now has a projected turnover of £8,000,000 in 2009 from over 500 properties.
Over the years the firm has won numerous tourism awards and is tipped to be one of the few businesses that expand in the current economic crisis. Currently bookings are up almost 60% year on year, in part due to a rapidly expanding portfolio particularly from new investors.
Liam Gavin comments, “Many investors have had their fingers burnt by the global stock markets and decreased level of interest offered by banks and building societies. Monies invested in bricks and mortar can actually offer a better return than other investments at the moment.”
“For an investment of £250,000 at a generous fixed interest rate of 5% you would net a return of £12,500 interest per annum. Whereas we would expect a property available for holiday letting to generate upwards of £20,000 rental income a year. Compare that to the FTSE 100 share index, currently down by 29% and you can see why investors are putting their money into property.”
This is certainly the thinking of Bob Higginson who owns holiday apartment, 57 Moorings Reach, in Brixham and has just invested in a second property at Pump Street Mews, Brixham, who comments “I see my investment in holiday properties as a way to put my money into solid assets. They are investments I can utilise to bring me a steady income through holiday letting. Stocks and shares are more volatile than ever and banks are collapsing across the world, the only growth area appears to be the UK holiday market and since property is a tangible asset I feel it is a low risk investment with the potential of a high level gain.”
Liam Gavin comments, “The property market took a bit of a pounding last year but then so did peoples shares and savings. Many investors are returning to property now that prices have tumbled, especially to growth sectors such as the UK holiday market. Premium properties can generate over £30,000 a year, a far better investment than stocks and bonds in the short and medium term and one that in general holds its value in the long term. Investors are spreading the risk again and the UK holiday market is seen as a sound long term investment.”
“I was concerned that the volatile economy, might mean growth would slow this year. However the public are booking in record numbers, so I would encourage anyone looking to invest capital, or struggling to keep a second home they don’t want to sell, to look to the ‘furnished holiday letting’ market. So long as a property is available to let for 140 days in the year, let for a minimum of 70 days and not to the same person for more than 31 days, owners will receive favourable tax treatment and qualify for ‘entrepeneur’s relief too. They’ll also make a healthy profit.”
For further details, contact:
Simon Whittam on 01752 823414
07802 416 420 or 01803 855282
enquiries@swpr.org.uk www.bluechipvacations.com
NOTES TO EDITORS:
Blue Chip Vacations has over 500 4 and 5 star rated properties on its books across the West Country.
The company is the largest provider of 4 and 5 star holiday accommodation across South West UK and the fastest growing self-catering holiday company in the UK.
Blue Chip Vacations recently won a silver award at the prestigious South West Tourism Excellence Awards in the category of Tourism Website of the Year, and was awarded the silver award from the Green Tourism Business Scheme (GTBS) earlier this year.
COMPARISONS Savings plan Interest rate Interest paid Yearly return on £250,000 investment
Anglo Irish Bank, Euro Privilege Fixed Interest Account. 4.75% 12 months £11,875
Hanley Economic Building Society, Child Trust Fund 5.5% anniversary £13,750
Typical property rented through Blue Chip Vacations N/A income paid monthly approx £20,000 +
FTSE100 As of Feb 17 2009 08:04 GMT
4,100 -35.11 -0.85% 8.83m 3,665-6,377 -1,687.96 -29.17%
Last Today's Change Volume 52 Week Range 52 Week Change
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See the original story at: http://www.prweb.com/releases/2009/02/prweb2106604.htm
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