Selling Your Holiday Home

Chartsedge has a reputation as being the “go to” agent for selling Holiday Homes. With both Caroline and Miles having owned Second Homes in the past they have the experience and knowledge of ownership and letting of these types of properties. With the majority of our sales having been in Cornwall in the past we really want to offer our expertise to the sales of Devon Holiday Homes as we are based in the lovely South Hams. (Click on pics for info. on these properties)

The second home buyers are still very active wanting to secure a holiday home to use themselves and for their family and friends. The type of buyers that we are seeing looking for holiday homes has changed recently with younger purchasers emerging. These buyers are often a young family with children who wish to have more quality time with their family recreating their own fond memories of their time in Devon when they were young. The most demand is for properties with their own gardens quite close to amenities especially pubs and restaurants.

The vast majority of second home owners rent their property to holiday makers for most of the year and these people spend a huge amount of money in the local communities where they stay. With tourism being one of the main income generating sector of the economy it is incredibly important for the population, even though they may resent it at times. The people that are employed by this sector such as cleaners, local holiday management companies, tradesmen, tourist attractions all employ local people.

What Type of property Holiday Home Buyers are looking for

The desire for apartments has waned due to Covid and the bad press of cladding problems with many new build apartments. The most popular choices are coastal houses with their own gardens close to amenities, high on the list would be a 3 bedroom house with large open plan living space. This gives the flexibility of 2 couples with children staying or the ability for grandparents to accompany their children on holiday, and it is important to note that many of the buyers have help with the purchase from their parents. This is also popular with holiday let clients and 3 bedrooms plus is becoming one of the more searched for criteria now, whereas it was historically it was 2 bedrooms.

The majority of these buyers are time poor with busy careers and we are often asked how the management of the properties work as they live so far away. Buyers have to consider when things go wrong when they have guests, which of course they inevitably do, like ovens not working, lost keys, broken cots etc. so having a reliable team that handles all these niggly problems is worth its weight in gold. The properties we have which already have a lettings company and a management company that deals with changeovers and the day to day running of the property are proving very popular.

The Income

When we first talk to potential buyers generally their only experience of holiday letting is the amount they paid for their week in a holiday let last year. For a family house in a good area of Devon this could easily be £1,600 to £2,000 per week. So when they sit down and do their first figures they immediately think they are going to make a fortune from their new purchase but don’t take into consideration the letting fees, changeover costs and running costs of a holiday home. As a rule of thumb we tell potential buyers that they should halve the gross income to get an estimate of what their net figure could be. Taking into consideration that holiday letting companies take 20% of the letting amount and that changeover costs are approx. 5% of the letting amount you have already lost 25% of your income before you start.

However on a more positive note you should be able to achieve about 5% net income from a  holiday let and you must always remember that you benefit from the use of your holiday home as well, with your own home from home for wonderful holidays and the ability to make many happy memories.

As a buyer please get in contact so we can go through the costs and income with you.

Demand for Self Catering accommodation

It is fair to say the demand for self contained accommodation has exploded over the past 2 years with record bookings and rental figures being achieved across the market.

We have been talking with our contacts in the holiday letting companies this year and they have see a decrease in enquiries from last year. This is only to be expected with the COVID restrictions lifting and many people choosing a holiday abroad this year. However they tell us the bookings are more in line with 2019, which was a fantastic year for self catering holidays. So if you take away the last 2 years, which I think we can all agree were extremely unusual and hopefully never to be repeated, the market is still extremely strong.

If you take the last 5 years the income you can achieve by letting your holiday home is increasing whilst the number of weeks let is also rising. Buying a holiday home at the moment seems like a great investment in the long term.

Chartsedge

The vast majority of the sale of second homes we deal with are bought with cash and are chain free and we are able to weed out the dreamers and focus on the serious buyers for our clients. Believe me this saves our clients a lot of time. With our experience and advice to clients we get more sales of these types of property through to completion than most other agents.

If you are looking for advice on buying or selling your holiday home please give the team at Chartsedge a call. With both Caroline and Miles having owned holiday homes that they successfully let we are well placed to give great advice.

Contact us on info@chartsedge.co.uk or 01803 505115