Would you consider a seaside BTL atm? Pros & cons?

[ravenAK]

Dh & I would really like to buy a small cottage in the seaside town where we regularly take holidays.

We'd use it ourselves for a couple of booked weekends per year (bi-annual festival which we always attend), fit our summer holiday round voids & use it regularly for impromptu weekends throughout the year.

Looking at the figures, we could buy the sort of property we'd like for £150-200k & let it for £300-700 a week. No idea how often it'd be booked throughout the year - that's the sort of anecdotal advice I need, really.

Anyone got any advice?

We're not looking to make an income, just break even & save ourselves shelling out rental.

I think unless it is a very popular seaside town with lots going on all through the year (such as Brighton or Aldeburgh) then you should prepare for a lot of voids during the off-season. During the times when it is being used, you will have to factor in costs such as someone to clean and make up the beds between lets and wash all the dirty linen - that sort of thing really adds up and agency fees can be much higher than with a normal let. Tbh, if you only want to have very occasional use, it would be much more cost-effective to book yourself into the nearest 5* hotel and invest your money elsewhere.

I would love one but dh "who knows about these things" tells me that the yield is appalling.

Also if you want to use it a couple of times a year for festivals they will be the biggest money making weeks.

Imo it's best to use it off peak and reap the money from the tourists when they're around.

Thanks, that's helpful.

Tbh we'd probably use it quite a bit! We're only a couple of hours' drive away, & the kids are at the bucket & spade age.

As for the festivals being the money-makers - yes, that's why we have to shell out a four-figure sum twice a year! . It'd be nice not to have to, not to mention avoiding the bi-annual hours of searching online for somewhere that hasn't already been booked for every WGW until the crack of doom...

It's Whitby, & we go for the Goth Weekends - so there are various other seasonal festivals (60s, folkies, etc) on which we could hopefully claw a bit back.

Thanks again - useful cautionary notes.

I've been angling to buy in Bamburgh for ages and have been looking at cottages there and talking to rental agents etc.

FWIW the figures just don't add up at the moment - factoring in increased mortgage costs (either on our main home or the holiday let) 15% management/rental agent fees, cleaning, insurance, maintainance etc. And this is in Bamburgh which is very popular and most cottages there can rely on being let for 45 weeks a year.

And actually, my biggest worry would always been finding someone reliable to clean every week between guests. Agencies do this, but the costs are steep, plus laundry.

Still, it just seems like such a lovely thing to have, a holiday cottage somewhere that the family could use for years to come.... no doubt I shall keep looking!