What is a short-term investment?

What is a short-term investment?

Investing is all about choosing the right path for you and your money, and one lucrative opportunity is short-term investments. These investments have shorter holding periods, lasting from a few months to a few years, and they can offer favourable returns with less risk. In this article, we’ll explore the concept of short-term investments, the benefits of a short-term investment such as with a fixed-income buy-to-let lodge and we’ll also explore the differences between short-term and long-term property investments.

Short-Term Investment Explained

Short-term investments are financial products or assets that are acquired with the expectation of generating profits over a relatively brief period. These investments are typically characterised by higher liquidity (meaning how easily or quickly a security can be bought or sold in a secondary market) and lower risk compared to long-term investments. People opt for short-term investments for various reasons, including preserving capital, quick returns, or taking advantage of emerging opportunities.

GladePark Investments’ opportunity to invest in buy-to-let lodges at Landal Barnsoul or Landal Belvedere are prime examples of a short-term investment. This involves investing in a holiday lodge within a park which Landal GreenParks will manage, maintain and rent out to vacationers, at no extra cost to the investor. The key highlight is that it can yield an impressive 8% NET yearly income for up to 5 years. Let’s break down how this works.

How does a Buy-to-Let Holiday Lodge Park Investment work?

Lodge on a sunny day

1. Investment Mechanism:

  • Clients invest in one or more new-build luxury 1, 2, 3 or 4-bed lodge plots within one of our well-managed holiday parks, Landal Barnsoul or Landal Belvedere.
  • These lodges are fully furnished, equipped, and maintained by the park management company, Landal GreenParks.

2. Income Generation:

  • Up to 8% NET yearly income is achieved by renting out the lodge, which is fully-managed by Landal GreenParks.
  • GladePark Investments guarantee a five-year period.
  • All GladePark Investments are fully asset-backed investments.

3. Short-Term Duration:

  • This investment is short-term because income and profits come in a limited time frame, generally up to 5 years.
  • GladePark Investments offer a 110% buyback in year 5.
Lodge Plot Blueprint

Short-Term vs. Long-Term Property Investment

Short-term property investments, like investing in holiday lodges, differ significantly from long-term property investments, such as owning traditional rental properties or real estate holdings. Here’s how they contrast:

Duration:

  • Short-term investments have a shorter holding period, usually a few months to a few years.
  • Long-term investments are held for extended periods, often decades.

Income Focus:

  • Short-term investments prioritise generating regular income quickly.
  • Long-term investments emphasise property value appreciation and wealth accumulation over time.

Liquidity:

  • Short-term investments are typically more liquid, allowing for quicker exits.
  • Long-term investments may require a longer time frame to realize profits and are less liquid.

Risk Profile:

  • Short-term investments often have lower risks due to the shorter holding period.
  • Long-term investments can be subject to market fluctuations and economic conditions over a longer time.

Management:

  • Short-term investments often involve professional property management, reducing the investor’s active involvement.
  • Long-term investments may require more active management, including property maintenance and tenant relations.

Short-term investments, exemplified by GladePark’s buy-to-let holiday lodge park investment with its 8% NET yearly income for up to 5 years, offer investors an attractive opportunity to generate income and realise profits over a relatively brief period. These investments are characterized by their liquidity, lower risk profile, and focus on regular income generation. It’s important for investors to understand the distinctions between short-term and long-term property investments to make informed decisions that align with their financial goals and risk tolerance. Ultimately, short-term investments can be a practical addition to a diversified investment portfolio, offering income and flexibility for those with shorter investment horizons.

Interested in a short-term investment?

If you are looking for a short-term investment then a holiday lodge investment, such as Landal Belvedere and Landal Barnsoul, reaps all the rewards of a short-term investment through a more hands-off approach, which is why they are becoming increasingly popular.

Finding an investment with a reputable management company is important when looking for a well-managed, short-term investment. At GladePark Investments, we work closely with our management company Landal GreenParks to ensure your lodge plot investment is well maintained and all customer-facing admin is taken care of, so you can oversee your investment without sacrificing time and resource into maintenance and management of the property.

Our holiday resorts offer hassle-free short-term investment opportunities from the plot of land, right through to the finished product, producing a reliable income without the need for consistent customer admin and property maintenance.

Get in touch today to find out how you can start your short-term investment journey.

Complete our Investor Questionnaire

Unsure if short-term investing with GladePark Investments is right for you? Complete our short questionnaire to find out if investing in GladePark’s buy-to-let holiday lodges is an option. Complete investor questionnaire.

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