I was surprised not to find a forum on Newquay so have added this to get things started.

With the growth of Newquay's new holiday apartments along with its established holiday property lettings and second homes i invite investors/owners and local residents to discuss current off plan/new developments and forecasted investment into the area.

What developments look a mile apart from the others?

Will rental demand out strip the bed space?

Is Newquay to become the new 'Sands'

Are prices at there true value?

Is off plan a good investment?

Will the aquired clientel actually visit Newquay?

What good or bad experiences have people had?

Any insider knowledge or factually based evidence to assist in investing?

Property for me has been off plan in The Rocklands and Tolcarne when i originally went looking in 2006 for a small holiday house.

As for Newquay, nothing but sweet childhood memories into my teens and adult life. Enjoying the local beaches right around the coves up into the national trust. Surfing,camping,golf and warm summer nights.

Im looking forward to the low cost hen/stag parties being costed out and Newquay loving frequent visitors not being embarressed when recommending the location and then seeing it on 'Booze Britain' or 'Crime night'.

It is better and deserves better, i hope it was just a blip whilst developers filled run down hotels awaiting planning permission for the new renovations.

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Newquay - great place to live and holiday.
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My personal opinion is that with the UK market at the moment, the best and safest option is
to buy Below Market value Properties (BMV) from motivated sellers.

New builds are often high in price and the rental yields are not much better than the standard 2bed terrace. Plus real market discounts of anymore than 10% are very hard to come by.

Just my opinion.

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Robert Gavin
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i'm another possible Newquay investor & have been surprised at the little amount of info i've been able to find. we're in a slightly different position though as we are hoping to eventually move down to Cornwall within 10 years & this would just be our 1st step into the market.

there are a few people on MoneySavingExpert that are prepared to offer their insight (just be prepared for a few flames if BTL is mentioned at all!). i've found useful info on home dot co dot uk & propertysnake

we've been looking at the developments overlooking Fistral, stunning location & surely only ever going to be a limited number of properties built there.

as we're curently thinking of letting out as holiday home to try & cover some costs, we know it will probably run as a loss but seeing as it's a long term goal & not a money making scheme, we've come to terms with this.

i've been very worried at the information i've found up to now that the market there just seems saturated. even the 4-5 star market we're looking at is getting poor bookings. some of the 2 bed properties have had a few weeks booked for july-aug, but apart from that things are looking sparse.

lots of the new-builds are now coming on to the market from the flippers (sorry Sharkboy!) but nothing seems to be selling. i know the market can be slow under normal circumstances, but with the crunch, total standstill seems here.

i found some figures from around 18 mths ago that estimated a third each of new builds were going to 2nd home owners, Holiday BTL's & flippers.

2nd home people that seem to be awash with money & able to only visit 1-2 times a year aren't really affected. but BTL & flippers, there seems far too many properties for the current number of interested people in a very seasonal market.

we're holding on for the next few months & will watch the market in general (& the local movement in Cornwall with great interest), i suspect a lot more for sale come september & very little movement...

I totally agree with you.
Thankfully i invest 18+ months ago.
The number of beds to the demand is yet tested with the development from dated hotels to new 4/5 star apartments which replaced them are perhaps over priced.
Movement of property is slow but being competitive will always attract a buyer.
Im looking to be down there in 5-7 years myself or definately the south east.
I never intended to be a flipper in Newquay as per my initial quest to buy and perhaps wont be.
The next year or so will be interesting,only looking back in when we are in the future will tell us if we were right to hold,sell or buy.
Good Luck, Maybe see you on Fistral.....

Hi Sharkboy

i just wondered if you'd had any more interest in your studio in Newquay? (Rocklands was it?)

we're going down there for a week end Sept/Oct have a look see whats happening - there's been a few items in the local press about very poor sales recently. Bradleys agents had a special promotion on last weekend (i think) where they were 'giving away' range rovers, mercs etc!! another agent has just dropped some new builds by around £40k as nothng was selling.

we definitely WON'T be buying just yet, but will be interesting to see what's being said as the summer rush will be over when we go.

Honestly interest is slow but it has been there. It was expected to be and if its not sold im more then happy to keep it having seen the quality of the development. Its quality out weighs all other developments so if it remains at a competitive price it will remain at the top of the pile to be sold.
Big cuts have been made by over priced developers.
40K slasing is 25% + on the average build which is far higher then the national average so can only be good for the investor,show a true reflection of price and undoubtable low quality of the project which takes me back to always buying quality.
Rental demand has been good so im more then happy to see the development through its first year. Where would you like to stay when its built?
Good luck with your hunt,i think the market has bounced off the bottom and be making a very very slow recovery which is only for the better in the future.
Let me know how you get on in Newquay and what the vibe is or sales pata.
Hopefully be down myself soon to enjoy whats left of summer.

Smart careful investors I find invest based on strict business models;

1) The property should yield after costs (dont forget the costs of the interest lost on deposit, accountancy, insurance, ongoing repairs etc) at least 7%

2) It should certainly be let for 12 months pa and not seasonal

3) Currently you should expect to get about 20%+ off the summer 2007 price

4) Newbuild often leads to an over supply, so reduced ren yield which is why so many lenders wont touch it

5) Capital growth is merely a by product and not to be factored into the business as it's unpredictable and if you sell you lose 40% in Tax anyway



Anything that does not meet this criteria is not an 'investment', it's merely a lifestyle purchase.


Having said all this, if you can locate a truly exceptional location with limited futute supply you might want to look at capital growth prospects, but dont be fooled by the many that say they bought for £100 and sold for £300 as they nearly always dont factor in the costs and Tax to include selling and buying costs and loss of interest on depoit. Thier true profit is almost always way less than they think

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Been investing abroad a few years. Always amazed people invest in places that produce just a few months rent per year

Having said that if you have the right prop - you can certainly market and set it up as a holiday let. Obviously do you rdue Dililgence but i think that certain deals can be done in Newquay - i know there are deveopers desperate to get rid of old stock there - so a bargain could be snapped up pretty certainly. And with the right discounted price you shoul dbe able to get good cash flow out of a holiday let there..

Check out 4wallsandaceiling dot com - Vanessa Warwick did a fantastic presentation on UK holiday lets as the best strategy in the current market..