Possible business

[lovemyboys25]

Friend has asked my opinion on a property we viewed

It's a holiday complex of 5 cottages & owners accommodation

£1.1m with a return of 6.75% £74,000 income

It would provide accommodation & her partner could work

Is it a good investment?

My mum has a couple of holiday cottages she's rented out for over 15 years now one my Grandad lives in and the other she's just rented out long term as she couldn't be bothered with holiday rentals anymore plus she still got a good return of £800 pcm.
Where are the cottages at?
Yes you can make a great income from holiday let's but now there is airbnb you have more options/competition so you have to stand out from the crowd and market them more with websites/Facebook pages. My Mum used to rent hers out through a cottage company and would have the cottages rented 48 weeks of the year but the last 3 years it's been more like 35 weeks of the year which I think is due to more and more using Airbnb.
Another thing to consider is getting good cleaners my mum really struggled to get anyone to clean 1 but as your friend has more she may have better luck as can offer more hours.

Oh meant to say the value of my Mums place has gone up nearly 100% over the time she's owned it so even without the rent it's been a very good investment for her.

Wow that's great thanks for the reply!
These are in Norfolk

Location is everything. There is a difference between Brancaster Staithe and say Bacton.

If the 6.75% return is gross, this will be enjoyed by friend if they manage the advertising and properties themselves. It would be at least halved if that work is contracted out. I think that turnover for five units is a bit low to be honest.

That's a fairly low yield on the capital. I don't think holiday lets are a particularly lucrative part of the property market. They require a lot of work, standards need to be high. Add in refurb costs every few years and you're relying on capital gains.