England's St Mellion Resort Debuts New Golf Homes

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Unlike America, finding a home on a golf course is not as commonplace in England. Or the rest of Great Britain for that matter.

Fans of St Mellion International Golf Resort, however, now have a rare opportunity to purchase residential overlooking the resort's Jack Nicklaus Signature Golf Course. According to the developer's of this new "Esprit" enclave of homes in the heart of St Mellion, the development comes with an "investment guarantee scheme" offering an 8 percent return for three years to investors.

St Mellion, located near Plymouth in Cornwall, is noted for playing host to 12 PGA European Tour events. The attractive "investment guarantee" offer is available only to purchasers of the first 27 of the 66 proposed properties. The homes situated in the heart of the St. Mellion overlooking both the Nicklaus golf course and Kernow Golf Course.

The first properties are planned for completion by Easter 2013. The properties range in size from 2-bedroom, 2-bathroom apartments (641 square feet) and go up to 4-bedroom detached homes (1,410 square feet). Prices are $328,000 to $720,000.

Built with an energy efficient timber frame the homes feature high quality fixtures and fittings, under floor heating throughout, bespoke modern kitchens, bathrooms and oak staircases. All rooms on the upper floors are characterized with high vaulted ceilings.

The built-in rental revenue scheme runs for three years from the date of purchase, according to the developers.  During this period the developer will cover all other running and servicing costs with no other costs payable by the purchaser. Owners can utilize their property for three weeks within any one year, in low and medium seasons, with the option to have a reduced rental payment if using it for longer periods.

Though England overhauled its tax code on rental properties, the developer says there are still favorable tax breaks for savvy purchasers looking to make an investment in a furnished holiday rental property. For example when the property is sold, the rate of capital gains tax charged on any rise in the value of the property is less than half the usual 28% rate at just 10%.

Early purchasers will benefit from free membership for three years to the resort's two golf courses and other leisure facilities on site such as their health club and spa with three separate indoor swimming pools, a large gymnasium, an Elemis spa, crèche, kids club, tennis courts and bowling greens.

The resort also has its own four-star 80-room hotel featuring an onsite brasserie, fine dining restaurant, bars, and golf clubhouse. All early purchasers will receive discounts on food and beverages within the Resort.

The developer are anticipating the properties will be popular with investors looking to rent them out as holiday lets and the golfing and leisure facilities onsite will give owners a much longer rental or "letting" season.

The demand for self catering holiday lets has soared by 20% since before the financial crisis, according to a recent Knight Frank report on second homes. The trend is expected to continue with Deloitte and Oxford economic forecasting that spending by Britons holidaying at home will rise by a cumulative 30% by 2020. The southwest region dominates the domestic tourism market accounting for one in every five trips taken by holiday makers last year.

"Whilst investors will get a guaranteed return for the first three years, most investors will want to be assured of the long term potential for renting their property and of capital appreciation," said developer Shaun Fox. "St Mellion is already a mature resort destination with all of the resort facilities in place and fully functional, unlike some other UK and European resorts. Cornwall has an enduring popularity both within the UK and further afield. We are confident that the facilities on site, and all the regional attractions, will be sufficient to keep any family or visiting guests entertained across all seasons."