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Watersmeet promises all of the benefits of Leaseback
A nice lady rang me up this week and asked if I was interested in an investment scheme which paid back a 6.5% return (not guaranteed) on apartments being built in the grounds of a rural Cotswold hotel. Things got even more interesting when she explained I could use the property as a holiday place for myself for up to 90 days a year.
"A bit like a French leaseback scheme then?" I asked. This drew a blank, but it transpires that the idea is exactly like a French leaseback scheme, with the exception that you don't get the VAT back.
Watersmeet is a new property development forming part of the Cotswold Water Park Resort; a four star hotel, leisure and conference complex that is a joint development by Four Pillars Hotels and Builders Ede.
It's being marketed as an ideal buy-to-let investment opportunity: "luxury studios, 2, 3 and 4 room apartments and penthouses, enjoying an unsurpassed setting of lakes, rivers, wetlands and grassland in the Cotswold Water Park. Stunning views, open spaces and a wealth of leisure and active pursuits make this the perfect place for rest and relaxation all year round."
With multiple outdoor activities (watersports, cycling, angling, horse-riding) and access to the hotel's indoor amenities (spa, gym, swimming pool, bars, restaurant) these holiday apartments are being designed to appeal to families, weary executives and active retirees.
The development appears to make an excellent base from which to explore the Cotswold countryside and nearby cities and towns including Gloucester, Bath, Bristol, Cirencester, Oxford, Cheltenham & Stow on the Wold.
31 units are being released in Phase I with another 30 to follow - all to be completed by Summer 2008.
Apartment users will be able to enjoy all the amenities of the nearby Cotswold Water Park Four Pillars Hotel, including a restaurant, bar, pub and the world class SPA 6. (So that sounds ok then!)
But on a note of caution, read the downloadable pdf pack and you'll notice that the service charges would eat into that 6.5% ROI. A £220k apartment is estimated to bring in an annual rent of £12,650 but little mention of void periods is made. (Let alone what would happen if rural tourism met the disaster of another BSE crisis. But perhaps my penchant for seeing the worst case scenario in everything is coming out here!)
Having said this, I like the look of the development and the French leaseback idea (novel in the UK) could work well. If you view the Watersmeet website you might be equally entranced. Reach the Marketing Suite on 01285 862 - 541
