Holiday Home Investments #1 Introduction

  Next: Leisure Industry

Video Transcription: 

Hi guys. So I wanna welcome you to this series for holiday home investments. And I think, you know, I'm really quite excited about this, because any time you can create a new product or identify a new product that services a need in your portfolio, and right now the need is income. So, you know, we're really focused on income and we're really focused on re-balancing it, because obviously, we've been up, you know, with between regulations and tax changes and mortgage restrictions and all these sort of things, what they've done is they've driven down the returns from an income perspective, okay? And also with Brexit and things like that, they've also affected the capital values. So effectively we've been hit from all angles.

So what holiday home investments do is they re-balance that, because they're very heavily weighted on the income side of things. And I think, now for me it's a really good product because it's very much an established product, most people understand it, you know. If you no-buy to let the same rules apply, the trick is you gotta add a management company. If you looked into hotels and you wanna stay in that product, then actually this is exactly the same product. It's just a slightly different take on the exit class, okay? So it's really, you know, not much for change.

So in this video series what I'm gonna be covering is, I'm gonna look at, you know, introduction now. We're gonna look at the leisure industry in the next video. Then we'll look at tax benefits, the lending. We're looking at a management company. We're looking at risks. We're gonna look at how to actually assess a deal, okay? And then we'll look at cash flow. And finally, we're gonna go through a whole heap of frequently asked questions that I've had in from people as I've been sort of talking to people and that sort of thing.

So, you know, we've got a lot to cover over this video series, but I think what you'll find is by the end of it, if you follow it all the way through, you know, they're not too long, you'll actually come out the other end thinking, "You know what? I'm pretty confident that this could be something that I'm actually, you know, really interested in."

Look, so let me just talk through and introduce you the reason behind moving to holiday homes. The reality's the income side, that's pretty much the sole reason why, because we needed to re-balance that. And in re-balancing it what I didn't wanna take on is all this risk. You know, I see so much salesmanship around a lot of this stuff and, you know, anywhere where you can get a big commission tends to attract people. Or anywhere where you can get a non-standard asset class, you know, so hotels would be an example. You know, land banking.

So there are hundreds of different alternate investments that we can talk about. And the thing with those alternative investments, some of them are packaged up and sold incorrectly. So there's a whole heap of risk attached because you don't know the rules of the game. So the whole idea behind this video series is by the end of it you'll know the rules of the game that apply to holiday home investments, okay?

Then it's a case of going out, doing a bit of research and seeing just how big an opportunity it is. The leisure industry is massive, okay? Absolutely massive, you know. And this particular, the niche that we're in is the holiday homes or the leisure accommodation industry, okay? So it's, you know, it's a massive, massive part. It employs about 10%, or just shy of 10% of the entire workforce of the UK are employed in the leisure industry. It's, you know, something that you don't really consider. But you think about all these hotels, guesthouses, all those sorts of things, you know, there's a huge opportunity there. And you know, the opportunity to make money, which is fantastic.

You know, there are also risks, so that's why I wanna cover the risks a little bit later on in the series. But look, guys, I know, the focus on the income, that's the big thing. But what I didn't wanna do is take on a whole lot of risk and get, you know, selling a whole heap of crappy products, and you know, that's one of the things really why I sort of, I go into products very slowly and I do lots of research into them. And so I've done all that now. I'm pretty confident, you know. I have to say, you know, I'm probably more confident in the holiday home proposition than I was when I started in the hotel product.

You know, hotels have done very well for us and done very well for our investors, but you know, this holiday homes for me is an extension of that, with very similar principles and very simple, you know, we haven't changed the rules of the game too much. What we've done is we've changed the style of asset. The rules that apply to hotels also apply here, because what you have is you've got an asset, which is the land or the buildings. Then you also have, in this case, you've got the business, which is a hotel you have a business as well. So you gotta look at the P&L balance sheet, all these sorts of things, you know. Which, you know, we'll cover that later on when we go to cash flow.

Okay, so you know, the key here is what we're looking at, you know, is the leisure accommodation industry. So if you were actually searching, don't get confused, because when you do searching, if you just look at the leisure industry, it is massive. It covers all sorts of things like parks, and it covers, you know, leisure parks in terms of, you know, your Alton Towers and things like that. So all that is included in leisure as well as restaurants and bars and... So if you look at those figures you think, "Wow, this is massive." Well no, we're a niche within that particular thing.

So, guys, we're gonna get into it now. You know, I'm really excited about this and I think, you know when you come through this video series you'll really start to see that this is a bloody good opportunity and, you know, something I think you should really take seriously for moving forward for your property investment or your portfolio. All right guys, have a great day, live with passion, and we'll see you in the next video.