Investment Potential

We firmly believe that a home at The Bay, Talland will prove to be a very good investment in addition to being an idyllic location to enjoy family holidays.

Cornwall has been one of the strongest property markets in the country over the past decade, as people rediscover the joys of holidays here.  Well located coastal property is always particularly in demand while supply is constrained by the extreme difficulty of obtaining planning permission, especially in "Areas of Outstanding Natural Beauty".  A study by Savills of all sales in Cornwall in 2008 showed that properties located like ours, within 250m of the coast, commanded a premium of 52% over the county average.

The many factors driving the Cornish second home market: rising affluence, more active retirees, foreign travel delays, and the improved quality of local accomodation and restaurants are all trends that are likely to continue. More recently, the collapse of sterling versus the Euro and Dollar has made a typical overseas purchase up to 25% more expensive.

The south east coast of Cornwall, while just as beautiful as the north, offers much better value as it remains relatively undiscovered. Prices in Padstow, for example, have risen by an astonishing 500% over the past decade (Savills/Daily Telegraph July 11th 2009).  We believe that this discrepancy will correct over time.  A recent article "Polperro pips Polzeath" in the Daily Telegraph endorses this view 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 built to order at "off-plan" discounted prices. Those who bought in the first phase have already benefited from an estimated 30% valuation uplift upon completion of their homes. The opening of the Clubhouse this spring is expected to have further boosted values.

We are pleased to have made sales steadily, even during the worst periods of economic gloom, and the pace has accelerated sharply as the economy has started to improve. This reinforces our confidence that we have a very attractive product, at a reasonable price, and expect to see a significant rise in the value of our properties as the cycle turns.

Holiday Home CGT and IHT Benefits

The June 22nd 2010 budget brought CGT tax up to 28% on all "non-business" assets, including second homes. However, "holiday homes", if they are let for the required 70 days in a year, remain classed as "business assets".  As a result, they are subject to CGT of only 10% after 2 years ownership, and can be passed to heirs free of IHT if the donor lives two more years, rather than the usual seven.

Buyers should, of course, seek their own tax advice and we are happy to recommend an accounting firm who specialise in taxation of holiday accomodation.

Rental and Management Service

Owners who wish to rent out their property, may do so through the The Bay's comprehensive on-site letting and management service. This includes: active marketing through advertising and our website, reservations, key-holding/change-over, cleaning, laundry, and the arranging of essential repairs and maintenance. This will make it very straightforward for the owner to rent out his or her holiday home and to achieve the highest possible occupancy. Rental yields, once the development is fully open, have been independantly estimated at  7-8%.