When the initial appeal of hotels becomes tiring, business travelers may consider purchasing a property. Here is what to take into account.
When the initial appeal of hotel living becomes tiring, some business travelers may begin to consider purchasing a property in the city they're visiting often for work (also known as a pied-à-terre). Purchasing a property for business travel outright can be cheaper than paying for long-term hotel stays, and it offers a solid sense of permanence that those on the go may appreciate.
Before taking the plunge though, it’s important to weigh the pros and cons of such a decision. Below are some key points to keep in mind when looking at buying a property specifically for business travel.
If you frequently travel for work and stay in hotels, the accumulated costs can add up quickly. The average cost for a hotel room in London during the month of December has risen from , and those costs do not include the cost of premium services like valet parking.
When you own a property in the city you visit often, you’ll have a guaranteed place to stay whenever business brings you to town – and you won’t have to worry about racking up hotel bills.
If you've ever spent an extended period of time staying at a hotel, you'll know any perceived conveniences quickly fade when you are missing your home comforts. When you own a property in the city you frequently visit for business, it can feel more like coming home than checking into a hotel.
You’ll have your own space to relax in and to conduct business, rather than being confined to a single hotel room. That sort of familiarity will literally help you feel at home, and that cannot be underestimated when dealing with the stresses of business travel.
Depending on your location, you may be able to get a tax break on the pied-à-terre that you purchase for business travel purposes. In some cases, you can write off a percentage of your mortgage or rent payments as a business expense.
The kind of tax write-offs you'll receive will vary according to your specific use case, so it’s important to speak with a tax advisor to determine if you are eligible for any tax breaks before making a purchase.
One of the benefits of purchasing a property for business travel purposes is that over time, the capital gains on the future sale of the property can be quite lucrative.
If you hold onto the property for a number of years and then decide to sell, you could stand to make a significant profit — especially if you purchased the property at a time when the market was down.
Of course, there are no guarantees when it comes to real estate, but if you do your homework and purchase a property in a prime location, the chances of seeing a healthy return on investment are quite good.
If the idea of long-term capital gains sounds great, but you’re not sure if you can afford to buy a whole new property, companies like Flyway offer a fractional ownership model, which means you can get into the property investment market at a much lower price of entry.
When it comes to finding a property for business travel, you have to be realistic about what you can afford and the space you need.
Not every city has a wide variety of properties available for purchase, so if your ideal scenario doesn’t align with what’s currently on the market, you may have to wait until the right opportunity comes up.
In the case of Flyway, we have hand-selected properties in prime locations, like London, which makes the search process much easier. To make things easier still, Flyway’s homes are at a level of luxury that you might consider the property for dual-use — for both business stays and self-indulgent holidays.
If you purchase an older property, it may need some work to bring it up to your standards. You may need to renovate the kitchen or bathrooms, install new windows or doors, or make other cosmetic changes.
All of these things will cost money and take time to complete, so be sure to factor those elements into your overall budget and timeline.
One way to negate this is to go through a company like Flyway, which only offers superior properties that pass a rigorous process to ensure the utmost quality from the moment you put the key in your door. When you co-own a Flyway property, all maintenance, repairs, home upgrades, interior design, etc. are taken care of for you, so that you simply land and enjoy. This sort of convenience is one of the many benefits of owning a fully-managed property.
The city you visit for business may change over time, and with it, your need for a pied-à-terre. If your company decides to open up a new office in a different city, for example, you may no longer have a need for the property you purchased in the previous location.
There is no doubt about it, a change in location is the most unavoidable downside of buying a property for business travel, and so you will require a large degree of certainty to negate it.
In the case of Flyway, our properties are owned in fractional shares of 12, so when it comes to selling, our owners find that selling one share can be faster and more convenient than listing an entire property. In fact, in some cases, the other existing fractional owners are more than happy to take advantage by buying another share as soon as possible.
If you have the budget to buy an entire property outright for business use, more power to you! However, for most people, this simply isn’t realistic. The average price of a flat in London is over , and for many businesses, that is simply too much capital outlay for a property that will only get occasional use.
The good news is that there is a way to get around this, by purchasing a fractional interest in a property through a company like Flyway. In Flyway's innovative model, for example, you can co-own a property in your favored business destination for a fraction of the cost. A share of 1/12 allows you to stay in your city house for up to 30 nights each year, which is perfect for most business travelers. If you require more days, simply purchase more shares.
All of Flyway's prime properties are in sought-after metropolitan centres and are set up with first-class furnishings and the latest in home automation technology. It also offers a complete turnkey experience, meaning all you have to do is enjoy your stay, and Flyway will take care of all expenses and maintenance. The best part is that you also own a share of tangible real estate, which stands a good chance of yielding capital gains for years to come.
When it comes to business travel, purchasing a property in the city you visit often can have many benefits. Not only is it more convenient and overall affordable than staying in a hotel, but you also get the added bonus of having a place to call your own.
There are certainly many things to consider before jumping into fully-managed second home co-ownership in the city you visit often. Your situation will be entirely unique, and so you'll no doubt have more than a few questions. If that's the case, please send us a message by filling out the form below or just book a call with us, and a member of the friendly Flyway Concierge team will personally help you.
Send us your questions, comments or simply declare your interest to buy shares. A member of our team will reach out to arrange a call