Investment Potential

Cornwall has experienced strong home price appreciation as people rediscover the joys of holidays here. A recent study by Halifax cited Cornwall as one of the strongest markets in Britain over the last 10 years, with a 266% average gain across the whole County. Prices in some coastal areas, such as Rock and Padstow, have risen much more.

Many factors are driving this. Rising affluence, baby-boomers approaching retirement, foreign travel delays, the improving quality of local restaurants and accommodation, and even the warmer weather, are all trends that are likely to continue.

Coastal property remains in strong demand despite the recent "credit-crunch", while supply is constrained by the extreme difficulty of obtaining planning permission for new construction. The South East Coast of Cornwall, while just as beautiful as the North, has not participated in the price boom to the same extent and so offers much better value. We believe that this discrepancy will correct over time and that investing in a holiday home here will give a strong return. A recent article "Polperro pips Polzeath" in the Daily Telegraph endorses this view and describes the area as "bucking the trend" as buyers seek better value.

http://www.telegraph.co.uk/property/main.jhtml?xml=/property/2008/09/20/psoutheast120.xml

The homes at The Bay are being sold at "off-plan" discounted prices, no stamp duty is payable and rental yields are projected to cover mortgage costs. Yields on short term holiday lets are much higher than in the traditional buy to let market. Further, the letting of furnished holiday homes attracts several important tax benefits. As they are considered business assets, these include: CGT reduction to 10% under "entrepreneurs relief", inheritance tax avoidance after two years from gift, and any losses reduce the owner's overall tax bill as they are offset against "other" income. Owners should of course seek independant tax advice on holiday letting.

We are able to introduce buyers to mortgage lenders who are familiar with The Bay development and currently are prepared to lend at 75% of the valuation.

Rental and Management Service

Owners at The Bay who wish to rent out their property, may do so through our comprehensive on-site letting and management service. This will include: active marketing through advertising and our website, reservations, key-holding/change-over, cleaning, laundry, and the arranging of essential repairs and maintenance. We will make it as easy as possible for the owner to rent out his or her holiday home and to achieve the highest possible rental yields.

We expect a very strong rental market as our development will be attractive to holidaymakers year-round. Occupancy rates for holiday lets in Cornwall are very strong, with High Season usually sold out throughout the county. This does not just comprise the summer months, but also includes Christmas, New Year and Easter. In low and mid-season, we expect much better than usual occupancy rates due to the beautiful location, the quality of the homes, and the range of facilities provided. Special events will be organised to help fill the quieter months of the year.