Buy to let developer offers guaranteed return

Added 30.06.09

Buy to let developer offers guaranteed return
Property developers are placing high stakes on more Brits holidaying at home this recession with buy to let holiday home deals guaranteeing good rates of return.

Developer Trevor Osborne, past president of the British Property Federation, is so confident of the booming British tourism industry that he’s pledging to pay 6 percent return on his Cornish seaside apartments if buy to let doesn’t prove fruitful for purchasers.

The Trevor Osborne Property Group recently completed The Monterey, a development of 15 luxury apartments close to the harbour in Porthleven on the south Cornwall coast.

As the credit crunch bit, the firm feared the newest addition to its property portfolio could be badly hit, but news of a boom in the UK travel industry with more cash-strapped Brits choosing to holiday in the UK, provided what the company saw as an unusual opportunity.

Trevor Osborne said: “The low value of the pound overseas means more people are staying in the UK. Buying property for holiday lets can yield better returns that currently offered by the banks and building societies.”

Online travel agent Lastminuite.com report UK bookings are up 16 percent this year, with Cornwall high on holidaymakers’ lists.

Osborne continued: “Our own holiday lets ‘Porthleven Holiday Cottages’ are doing well with bookings up 10 percent on last year. I’m so confident of the demand for holiday apartment lettings in Cornwall that, if our purchasers don’t make up to 6 percent on their investment in the first two years, we’ll cover the difference. It is a big commitment from us – it’s one we can afford but, if holiday lettings stay as strong as they currently are, we won’t have to.”

Described as ‘The Pearl of the Cornish Riviera’, Porthleven is the most southerly port in the UK, with the South Coast coastal path offering walks to The Lizard and Lands End. Prices at The Monterey start from £170,000 for a one-bedroom apartment.

News feed courtesy of Residential Landlord