If you are thinking about investing in buy to let property during or after the coronavirus pandemic, have you thought about a holiday home to let instead?
We suggest that whilst plans are being made for loosening lockdown restrictions gradually over the coming months, it could be some time before countries open their borders and allow foreign travel holidays.
It may take even longer for people themselves to change habits.
It may be that many people may not be able to secure cost effective travel insurance.
We predict a boom in UK ‘staycations’. We predict a boom in people holidaying in the UK for a number of years.
Fully furnished holiday lets do have tax advantages regarding expenses, wear and tear allowances, small business rates rather than council taxes and securing a holiday let mortgage is just as easy as securing a normal buy to let mortgage.
In addition, provided the holiday home is actually let commercially for at least 105 days of the tax year and available to let for at least 210 days of the year it will qualify as a 'Furnished Holiday Let'. In other words, all the tax advantages of a holiday home business plus you can use it yourself for around 145 days a year, that’s 20 weeks a year or every single week for a 3 day long weekend.