Are Buy to Let Hotel Rooms a Safer Bet? They Could be ..
The recent economic woes and collapse of the housing market is leading some investors to consider non-traditional property investments – specifically buy to let hotel rooms – as safer bets compared to traditional buy to let and renovation projects.
Under normal circumstances the phrase ‘non-traditional investment’ would not be associated with playing it safe, but the investment market at present is far from ‘normal’. The uncertainty in the financial markets and the collapse of both property prices and mortgage lending, have hit property investors hard. For those investors looking for a good place to park their retirement funds, safety and diversification are key factors.
The idea that you can buy hotel rooms might seem like a strange concept but its growing appeal is down to these very same motivators. Experienced hotel and resort development companies invite individual investors to buy hotel rooms within high-end hotel developments. Investors who buy hotel rooms see returns from both capital growth and regular income from rooms let.
Buy to let properties have always offered savvy investors a keen return, but as mortgage rates climb faster than rents can go up, many have been left out of pocket. Moreover any time the property stands empty means hefty monthly mortgage repayments and no income.
Buy to let hotel rooms offset these risks by basing the investors’ income on the performance of the hotel as a whole, not their individual suite, and so provide a regular income level. Even a half full hotel can provide a solid return on investment for private investors who buy hotel rooms.
Of course, having all your eggs in one investment basket is still a risky move, which is one of the reasons why buying hotel rooms is often viewed as a way to diversify an existing portfolio. Buying a hotel room is much more of an investment in tourism than a straight property play.
It’s a fact that particularly appeals to those planning for retirement as, provided you don’t need the free stays on offer, you can even buy hotel rooms via your self-invested personal pension (SIPP) scheme.
Case in point, a recent development in the upmarket tourist town of Sesimbra is offering freehold luxury suites on a buy to let basis.
Keen to attract secure investments the developer is also offering to cover all closing costs and paying cash back to early investors.
Of course, for those not buying via a SIPP, investors also get the perk of free stays in the hotel as well – a little bit of luxury to part the dreary economic clouds.
Adrian Warriner / Owner Invest are the UK-based specialists. For more information on how to buy hotel rooms and current developments in Portugal visit >>
McMenamins hotel and rooftop bar for Elks project
Python found in Neb. hotel’s potty was lost pet
The Nebraska Humane Society has tracked down the owner of a python found in a toilet of a La Vista hotel room. They said the owner panicked after losing the pet snake while staying at the Hampton Inn in late March and left without alerting management. The python was found Thursday morning by another guest.
Read more on
Hotel Room Wiped Out
From the bed to the paintings on the wall, everything was taken from a South Abilene motel room. KRBC’s Tim Johnston shows us one bizarre crime that left the Royal Inn wondering how it was pulled off.
Read more on
McMenamins hotel and rooftop bar for Elks project
Add a 100-room McMenamins hotel and a rooftop bar, and possibly a Whole Foods grocery store to the new building being planned for the lot next to the downtown Elks entertainment complex.
Read more on