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  • Writer's pictureRobin Lawson

7 Reasons Why Serviced Accommodation is the Top Choice for Property Investment in Newcastle

Updated: 2 days ago

Property Investment in Newcastle and the North East


Investing in property is a significant decision, and choosing the right type of property can make all the difference. In Newcastle and the North East, serviced accommodation has emerged as a top choice for investors. Here’s why property investment in Newcastle, particularly in serviced accommodation, is a smart move.


Tyne Bridge and Gateshead Quays in Newcastle, highlighting property investment in Newcastle
The iconic Tyne Bridge and vibrant Gateshead Quays, showcasing prime areas for serviced accommodation property investment in Newcastle.

1. High Demand from Tourists and Business Travellers


Newcastle is a bustling city that attracts both tourists and business travellers year-round. This steady influx of visitors creates a consistent demand for serviced accommodation.


  • Occupancy Rates: Higher occupancy rates compared to traditional rentals ensure steady cash flow.

  • Short-term Stays: Flexible booking options attract a broader audience, increasing your rental income potential.

  • Peak Season Benefits: Higher prices during peak seasons, such as festivals and business conferences, boost your profits.


2. Premium Rental Income


Serviced accommodation typically commands higher rental rates than standard long-term rentals due to the added services and amenities provided.


  • Luxury Amenities: Modern facilities and high-end amenities justify premium pricing.

  • Frequent Turnover: With short-term stays, you can adjust prices regularly to reflect demand, optimizing revenue.

  • Diverse Clientele: Attracts a mix of tourists, corporate clients, and event attendees, ensuring constant occupancy.


3. Flexible Usage


As an investor, serviced accommodation offers the flexibility to use the property personally during periods of low occupancy.


  • Personal Use: Enjoy the property yourself, offering a cost-effective vacation solution.

  • Easy Management: With professional property management services, maintaining the property remains hassle-free.

  • Seasonal Adjustments: Adapt your rental strategy based on seasonal demand and personal requirements.


4. Professional Management


Investing in serviced accommodation allows you to leverage professional management services, ensuring your property remains in top condition and continues to generate income.


  • Maintenance and Repairs: Regular upkeep and repairs are managed by experts, maintaining property value.

  • Guest Services: Professional management ensures high guest satisfaction through excellent service.

  • Marketing and Bookings: Efficient marketing strategies and booking systems increase visibility and occupancy.


5. Tax Benefits

There are attractive tax advantages associated with serviced accommodation that can enhance your overall return on investment.


  • Furnished Holiday Lettings: Eligible for various tax reliefs, including capital allowances on furnishings.

  • Income Tax Relief: Potentially lower income tax liability compared to other rental income.

  • Expense Deductions: Deductible expenses, such as management fees and maintenance costs, reduce taxable income.


6. Capital Appreciation


Newcastle’s property market is experiencing growth, and serviced accommodation is at the forefront of this appreciation.


  • Prime Locations: Serviced accommodation is often located in high-demand areas, leading to higher property value.

  • Market Growth: Newcastle's expanding economy and infrastructure improvements contribute to property value increases.

  • Investment Security: Real estate remains a solid investment, providing a hedge against inflation.


7. Diversification of Investment Portfolio


Adding serviced accommodation to your investment portfolio diversifies your income streams and mitigates risk.


  • Income Stability: Diverse income sources provide financial stability, reducing dependency on any single investment.

  • Market Resilience: Short-term rentals often fare better during economic downturns compared to long-term leases.

  • Future-proof Investment: The growing trend of serviced accommodation ensures your investment remains relevant and profitable.


Choose Property Investment in Newcastle


Property investment in Newcastle and the North East, particularly in serviced accommodation, offers numerous advantages, from high rental income and flexible usage to professional management and tax benefits. The city’s thriving tourism and business sectors ensure a steady demand, while capital appreciation and investment diversification further enhance the appeal. By choosing serviced accommodation, investors can enjoy a lucrative and secure investment in one of the UK’s most dynamic cities.


Want to know more? Check out our website or get in touch.

 

Frequently Asked Questions


Why is serviced accommodation a good choice for property investment in Newcastle?

How does professional management enhance property investment in Newcastle?

How does professional management enhance property investment in Newcastle?

Are there tax benefits associated with serviced accommodation investments in Newcastle?

What makes property investment in Newcastle and the North East secure and profitable?


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