23/12/2024
“Farewell to the Jacobean Era: A Financial Breakdown of Our Holiday Let Investment”
We recently said goodbye to our stunning Jacobean holiday let. Owning a property from the 1500s was an incredible journey—full of challenges, historical charm, and valuable lessons. Here’s how the numbers stacked up:
Financial Breakdown
• Purchase Price: £205,000
• Restoration Spend: £110,000
• Total Invested: £315,000
• Sale Price: £405,000
• Net Proceeds (Sale Price - Total Invested): £90,000
• Mortgage (on £450,000 valuation): £337,000
• Equity Released from Mortgage: £66,000 more than invested.
Capital Allowances
We also claimed £200,000 in capital allowances, which were retained within the company. These allowances will offset profits from this and future projects, significantly reducing taxable income for years to come.
Why We Sold
Although the property was valued at £450,000, we chose to sell at £405,000 to free up equity quickly for our next investment. The sale allows us to focus on three Georgian townhouses in Chichester—spacious, younger properties with modern appeal.
This project wasn’t just about numbers. It was about learning, adapting, and strategically positioning ourselves for the next step.
Follow Our Journey
What do you think of these numbers and the decision to sell? Would you have done the same? Let us know in the comments! And stay tuned as we dive into our next project, moving from Jacobean charm to Georgian grandeur.
Here’s a financial chart to visualize the journey:
Feel free to reach out if you’d like to learn more about property investments or the power of capital allowances for commercial properties and holiday lets. We’re always happy to share insights!