An optimum lifestyle investment opportunity has just opened in the UK’s favourite and most popular staycation destination, Cornwall, thanks to the UK’s fastest growing holiday company, Aria Resorts. This week Aria launches its first-in-the-UK luxury two, three and four bedroomed boutique barns set within the lush, green, lake-filled landscape at the 5-star Retallack Resort & Spa in Cornwall, and with a range of compelling earn-back options and packages.
Situated close to the UK’s fastest growing airport, Cornwall Airport Newquay, the culinary delights of Padstow and the botanic wonders of the Eden Project, the timelessly stylish boutique-barns masterminded by Notting Hill-based House Nine Design have a new world luxurious sophistication, blending architectural design and unique interiors styling.
Complete with burnt black larch wood and floor to ceiling glass frontages, and some with rooftop hot tubs, the new boutique barns at Retallack Resort and Spa will provide an elevated level of holiday retreats for guest, holiday homeowners and investors alike. A lead-in investment price of £275k for a two bedroomed model including a furniture and fittings pack offers significant value for money for this level of luxury and hot-spot location.
Aria Resorts is pioneering the way in holiday and resort experiences with investment and ownership benefits. The highly lucrative Cornish staycation market is at the core of its fast-growth business strategy, given its leadership role in the UK tourism economy. Year-on-year, Cornwall continually adds to its trophy display, this year being crowned the Best UK Holiday County/Region at the coveted British Travel Awards in November, proving that it is undoubtedly one of the ‘hottest’ UK holiday destinations.
All of the boutique barns are mortgageable and under Aria’s ‘investment product’ option, the properties are the perfect armchair investment. Services included in this programme include; the annual ground rent payment, the appropriate insurance for a holiday buy-to-let property, a full lettings inventory, maintenance and cleaning and advertising. The net annual return that is payable to qualifying investors through this investment product option, for either the three or the five-year term option is 7% which is paid quarterly, subject to approval and terms and conditions apply. At the end of the chosen term, the investor has the option of switching to a variable annual return, expected to be a minimum of 7% per annum.
Holiday home owners also have the option of entering the Aria Resorts’ Managed Lettings Scheme which allows participating owners to control how many weeks they let their property. This plan operates with a 30% + VAT commission fee, with this fee covering all marketing and cleaning fees (although there is an additional charge for linen). To give an indication of earning potential under this scheme, the average gross income on Retallack’s currently existing two-bedroomed premium lodge is £38,140, and the income for the new barns in 2020 is anticipated to be higher at £42,612. The average gross annual income on the existing four-bedroomed premium lodge (of which there are nine units) is £51,957, with the new barns set to offer an income of £54,216 in 2020*. The projected 2020 figures show an overachievement against the current performance examples for the new, unique, detached luxury barns based on research and forecasting around the staycation and UK tourism market trends.
Aria has already invested over £100 million in Cornwall and is set to invest another £50m in the complete redevelopment programme of Retallack Resort & Spa. The demand for UK holiday properties shows no sign of slowing down, with investors attracted to the growing staycation trend and the tax benefits associated with holiday lets. In addition, Aria Resort investors will benefit from the tax conditions surrounding the ‘furnished holiday properties.’ Furnished holiday let (FHL) is the tax term which covers a whole host of different types of activities linked to short-term letting of residential property.
Recent surveys on the UK staycation market from leading bookings company Sykes Holiday Cottages, Mintel and Barclays Corporate Banking reveals that the Brexit factor is having a positive influence on people choosing more holidays ‘at home’ in the UK. The ‘Sykes Staycation Index’, which uses booking figures, consumer research and data to reveal trends in the UK holiday market, shows that 66% of Brits enjoyed a staycation last year, which is a 10% rise compared to 2017, benefitting holiday home owners significantly.
This coupled with the reduction in investors purchasing buy-to-let residential properties as a result of Government changes to tax allowances around these types of properties, means that the Aria Resorts mortgageable, fully managed, luxury letting properties could be the ideal opportunity for both ‘armchair’ and lifestyle investors who are looking to use the property as a holiday home for themselves, friends and family.
Paul Nicol, sales director for Aria Resorts, said, “We are absolutely delighted to bring these beautiful boutique barns to the market for all manner of buyers and investors. An investment in one of our boutique barns at our five-star Retallack Resort & Spa, can offer a fixed return of 7% and we take care of all the marketing and management requirements so there is never a worry. All of the research from highly credible sources is showing that the UK holiday property sector is performing very well and has been resistant to the cloud of Brexit. So for those who choose to make a positive and secure a coveted luxury Cornish investment at this time, this is a fantastic financial opportunity.”