Southwold home owner
SHOULD I INVEST IN A HOLIDAY HOME IN SOUTHWOLD?
Updated: Dec 26, 2022
Airbnb is the most popular online hosting marketplace today. It provides sellers a safe space to offer short term accommodation for a price. It provides buyers complete visibility to a wide range of short-term accommodation.
Number 5 Southwold
The owners of this home were seeking peace and tranquillity and followed their dream to have a bolthole to escape to next to the sea. They entered a difficult property market, a very competitive sellers’ market where the property they selected was no longer available (the sellers pulled it off the market on the day of exchange). They were subsequently introduced to something very different and the potential was on another level.
Cinque cottage as it was known is located in an idyllic spot of the Suffolk coast. The property is an original 2 bed cottage that sleeps 4 in Southwold, on the cusp of a conservation area, in an Area of Outstanding Natural Beauty. This was an original home to the area and that was incredibly special. It was loved by its previous owners for over 40 years, and changed hands during lockdown in April 2021.
Was it a good investment?
Good question - this how I would describe it.
My holiday home is a blessing to have, a rewarding treat to have in the background for my family but investment wise - not straightforward. It has the potential to earn both income and capital growth however, I have not realised any as yet! I have reinvested every penny to ensure that I keep delivering that consumer experience. Every penny generated from Airbnb/ Holiday letting has been returned to the property. This is also very typical in this market. The actual starting point is very key - was the purchase was a former holiday let or a residential property? If the latter the upfront investment and profitability will be disproportionate. I pride myself in providing quality fittings and fixtures and consumables - no skimping on costs.
I would say, there is no income return immediately in my experience, this may take a couple of years to happen (maybe 3-5). But in the meanwhile, I am ENJOYING some of the fruits of the labour - especially now, having the outdoor tub :-)