Buy-to-let deal looking safe in uncertain times

By Leah Simpson
Posted: 2009/06/12

A BUY-TO-LET property scheme, which includes a development in Perthshire, is capturing the attention of investors wanting to sidestep the uncertainties of the current housing market.

CLC Estates, the property arm of Club La Costa which is currently celebrating its 25th anniversary, is one of Europe's largest timeshare companies. And for property investors the big attraction is the firm's guarantee of a rental income for ten years with a return of up to around six per cent.

As well as having developments in destinations such as Spain and Turkey, CLC Estates operate within the UK where their programme includes Duchally at Gleneagles.

The Duchally Country Estate dates back to early Victorian times with its magnificent mansion eventually becoming a small country hotel. CLC Estates were quick to spot the appeal of the hotel and its glorious surroundings, but they were also keen to share its location and amenities with others.

This they have done by adding a state-of-the-art spa, fi tness centre and an award-winning restaurant.

This alone has to be a formula for success within the leisure world.

But CLC Estates have taken this appeal a step further by creating private homes within the 27 acre estate, for sale to investors. Featuring 65 properties with a further 30 at planning stage, the development takes in a mix of house types including semis and terraceds.

Carrying a high specification level they include luxurious finishing touches such as spa baths and flat screen TVs. And CLC Estate provide a full furnishings package.

Keenly priced, the last release was in the £285,000 to £325,000 price bracket, with an annual sum of around £2,000 community fee to cover the costs of aspects such as upkeep and gardening costs.

Investors own the properties outright with the vast majority leasing them back to the company for a ten-year period, and achieving, say the company, an investment return of up to 6 or 6.5 per cent through year-round lettings.

Investors gain an additional advantage. They can spend up to four weeks a year living in the property or at one of the company's related developments. After three years owners can take out a new letting contract or sell up. Or they can keep it is a second home or go on to live in it permanently.

Paul Smith of CLC Estates' explained: "CLC has 55,000 families on their books which means we are able to guarantee rentals.

"The beauty of this scheme is that people can invest in stunning properties without the worry of finding tenants to fi ll them.

"We also look after the upkeep of the properties, easing the burden that is normally associated with buy-to-let."

While the general housing market has been experiencing tough times CLC Estates have been enjoying good times. They say they have sold more properties in the past year than they have in the past three.

For would-be property investors that has to be good news.

Information:

0208-358-4106; www.duchallyhomes.com; www.clcestates.com