According to Colliers International hotels specialist Simon Wills: “Pensions are headline news again and no wonder as there is freedom on the horizon for the entrepreneurial 55 plus looking to a different sort of retirement.
Of particular interst he says is Bath where he believes hotels and guest houses in the city represent an ideal investment opportunity for people keen to have a change of lifestyle.
“It isn’t long until April 2015 comes round and those 55 and over can get hold of their pension pot and use it as they want, rather than having to stay in work and carry on until a traditional retirement at 65, 67 or even older.”
He identifies The Kennard just off Great Pulteney Street as an ideal target for people looking for a highly profitable not to mention comfortable business.
“The Kennard is on the market at £1.7m freehold, which isn’t bad for a top-rated business generating £170,000 profit from turnover of £336,107 net of VAT.
“This is a classic Bath B&B with a dozen very smart letting bedrooms and a delightful garden. People looking for a great investment opportunity for their pension pot cash will need to hurry as I don’t imagine this property will be on the market very long.”
Wells explains that radical changes proposed on pension schemes would allow people to take their money without having to place it in an annuity.
“Come next April people can take the cash when reach 55 and spend it as they wish – and while the Lamborghini might be nice the Kennard matches it for style and will be generating good income for years to come.”
Run to a simple bed and breakfast formula which especially suits the majority of Bath’s legions of tourists, The Kennard is a short walk from the city centre meaning guests don’t have to worry about cars, parking or taxis.
“Our clients bought the business in 2006 and they have refurbished much of the property and remodelled the garden, which means that new owners can step straight into the Kennard.”
To the rear of 10 Henrietta Street (next door to the Kennard) the owners live in a three bedroom house laid out on three floors, comprising a lovely kitchen, an attractive lounge with Juliette balcony, bathroom with separate WC, and also an additional shower in the laundry room.
“Bath is always busy and the occupancy levels as a result are very high. Tariff is strong and returns from B&Bs very attractive.
“As a result as the owner of a B and B, small hotel or guest house in Bath you can live in one of the world’s most beautiful cities and make an attractive profit too. It is no surprise that there is no sign of any slackening of interest in the sector.”