string(20) "what-you-should-know"
string(16) "costs-and-income"
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Costs and Income
Here you will find details on the costs of purchasing and fitting out a holiday home, what the running costs may be and how much income you might expect to make.
What is a rateable value?
Every non-domestic property has a rateable value, apart from those properties that are exempt from rates
The rateable value broadly represents the annual rent the property could have been let for on the open market on a particular date, on full repairing and insuring terms. For the current rating list, this date was set as ...
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Below is a list of the likely costs that a self-catering property will attract as running costs, though the list is not exhaustive and specific costs will obviously depend on the individual property.
Costs may attract VAT at the relevant rate.
Annual Bills
Buildings & Contents Insurance
Varies according to property size, location, history of previous claims etc - ...
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Below are the likely costs that will be incurred when using an agency or marketing the property yourself.
Costs may attract VAT at the relevant rate.
Cost of marketing through an agency
Charging structure varies by agency but they may charge some or all of the following:
Registration fee
£100-£200
Annual Fee
£100-£200
Brochure Cost
£100-£200
Commission per booking
20-30%
Cost ...
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Your return on your property will obviously depend on a number of factors:
The income generated through
The number of bookings achieved across the year
The price you are able to charge in season and out of season
The costs you have to pay out eg
Set up and ongoing costs
Mortgage costs
Your income will also be affected if you are VAT ...
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Below are the main items of cost that will potentially be incurred when purchasing a holiday home.
Costs may attract VAT at the relevant rate.
Item
Indicative Cost
Tax advice
£200-400 plus VAT
Conveyancing (the legal work)
£400-800 plus VAT
Local Authority & Environmental Searches
Depending on searches undertaken but likely to be around £200
Valuation
Depends on value of ...
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Investment in residential property has grown at a tremendous rate over the last few years; mainly due to the Buy to Let investment. Growth in Buy to Let investment has been nothing short of phenomenal, fuelled by the combination of easily available finance, the advent of the AST and the British love affair with property ownership. Buy to Let has ...
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Decoration
Depending on the size of the property it can cost £2,000-£5,000 to redecorate a 2-4 bedroom property, including carpets and curtains etc. Obviously if there are major works required such as fitting a new kitchen or bathroom then the costs will be higher.
If you use external design and decoration contactors the costs (including many of the furnishing costs ...
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Furnishings can make or break the appeal of rented accommodation - and have a bearing on rent. But as well as style and durability, landlords have to think about safety and other regulations which apply, says Joanna May.
Even unfurnished rented accommodation is likely to need flooring. But whatever the level of furnishing, the choice is important. Landlords will ...
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A holiday rental property is like any other property, things wear out and things go wrong.
Clearly the property you own will affect the likely bills - a new build property will likely require less ongoing maintenance than an older property, for example - but you should never assume there will be no costs involved over time.
Repairs and Renewals
All ...
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Investment in residential property has grown at a tremendous rate over
the last few years, mainly due to buy to let investment. Growth in this
sector has been nothing short of phenomenal, fuelled by the combination
of easily available finance, the advent of the AST and the British love affair
with property ownership. Multiple property ownership is now within the ...
read more
