Sounds like year one was a success! Congrats! 🤔...maybe Mum should get her cut AND some monthly sweets or flowers? lol And you won't catch me shaming you for owning the property! If I ever get to book my bucket list trip to Scotland I don't want to stay in a boring hotel! Your rental is the first place I'll book!
@@Suebee1988 That's what I was thinking. Steady income and no Air BnB or cleaning expenses. As long as you found good tenants who won't trash the place. :)
I know you said you didn’t really want to increase the price… but you could do it seasonally? If it’s £109 a night in the summer, make it £120 a night in the winter. That way it’s still very reasonable, but it puts a dent in the extra heating costs.
When I got it valued, that's what the real estate agent kept saying haha. I asked her if I should sell or rent it out and she was like 'holiday home for couples'.
Ok. Now I am convinced you are the loveliest person on RUclips. You saved that little house, and brought it back to life. And you're allowing others to share in that. And not depriving anyone of anything in the process. Give your business time, as soon as the mortgage is paid off you will have a very welcome earner for the long term, and like you said, you and your sweet cats can always live in it yourself.
My daughter owned a cabin that she put on AirBnB. After the first year she realized it was profitable from March through October so she started offering it only during those months. She liked doing that as it gave her profits and then a break when she wanted a rest from running it.
In some places, there's a market from September/October to May, with university students and teachers. In Ireland, the university term is from October to end May; or at least it was in the one I attended. If a place is isolated but scenic, there are many who might value living there over Winter and Spring: eg writers or people who want a retreat for some reason ....
You took this from an abandoned house to something adding value to your community by bringing people there. This is a GOOD thing. Your Airbnb is a positive thing. ❤🏡❤
Former banker here. Interest-only mortgages give me heartburn from a consumer borrower pespective and a risk perspective. Such loans are very risky, especially in a rising interest rate environment. My strong personal preference and advice is to convert when one can, to a fixed rate mortgage and pay down the principal, including earlier when one can.
Same same. My best friend has been crippled by one. The second he told me about it, I was concerned, and now he has to find an extra £950 a month, and it's REALLY going to hurt. If it was me, I simply couldn't afford that sort of increase.
that's it! just before the pandemic I took out a fixed-rate mortgage in Poland (banks currently offer a maximum of 5 years). the installments were only slightly higher, but in retrospect it was very worthwhile. first, the rates dropped to almost zero for a while, but then the madness began. when interest rates were soaring and people's loan installments were practically doubling, I could sleep peacefully. this wonderful time for me of very low interest rates compared to the current ones is over, but I decided to take another 5 years of a fixed interest rate. I prefer to know how much I will pay in the next 5 years and have peace of mind. the rates are unlikely to drop to zero again (certainly not in the next few years). even though the interest rate is higher than in 2019, I have paid off so much in these 5 years that it does not hurt me at all. this is the best decision of my life and I recommend it to everyone!
I would keep it and see how you can optimize the business. It's your beautiful first baby and it's an incredibly nice vacation home. You did a good thing with this project, you took something old and rather hopeless and made it a quality home.
I don't blame you for feeling sentimental with your tiny home, George, especially with all the love you put into it It makes sense that it would be hard to let go of it. It makes total sense to make some profit of your hard work until the time comes for you to move back in if that suits you. I think you've done great all round!
Your tiny home is the perfect property for airbnb. It was abandoned, no-one wanted it at all. It's future was as a pile of rubble. You saved it. No-one else did. Therefore you have the absolute right to choose what happens to it. As it happens, it is not suitable as a family home but even if it was, it's no-one's business but yours to decide it's future. My advice is that while it's paying for itself, keep it as an investment. Retirement is some way off for you yet but now is the time to start thinking about ensuring you have a comfortable one.
Congratulations! You have completed your first year of owning a working Air B & B A N D you made profit! Does not matter if it is one million or one pound. You made profit!!! That is really a major accomplishment for any business for the first year! Most businesses need at least 5 yrs before they start making profit. Well done!!!! Be very proud. Cheers from Florida USA. Merry Christmas to you and your family and of course the fur-babies. See you in the next one.
I have zero experience but my advice is give it another year before making a decision. On another note, I switched to a larger screen to watch the video hoping for a Junior or Tigger cameo. Your videos must always include these cameos!
I think waiting another year is a good call because then it won't be as much of a reflex decision, whatever I do. And I'm deeply sorry about the lack of Junior and Tigger. I will sort this in the future.
After all you did to restore it I can't imagine letting it go. I'm sentimental that way.🥰 You are a wise man & deep thinker so I know you'll do what's best for you in the long run. Best wishes to you & 🐈🐈🧡🧡🧡
I don't see a problem with ethics at all, George. It's definitely not a family home, so you are not taking housing from people with children who need to be close to the school. Also, if you hadn't purchased the place, it might still be abandoned and unliveable. Your profit might have been small, but at least you did have a profit and it will probably grow in the coming years. You could also rent out to a long-term tenant and have a steady income, if not a huge one. Thanks for sharing! ♥♥♥
Glad I'm not coming across like a total knobhead there then haha! Renting long term is something that a lot of people are suggesting so that's something I might look into. :)
This is true, you possibly saved a building’s life here George! It seems like what you did was very positive for the building, like it’s been mentioned, you turned it into a liveable home! It might be still sitting crumbling away if you hadn’t taken it on..
@@anitaevans2432 I am aware of that, but George seemed to be concerned about taking a home away from families who would want to be close to the nearby school.
Hi George, Junior, and Tigger !! In reading the comments, prior to posting this I agree on several points: 1. If you are constantly paying off interest, and not principle on a monthly basis, UGH that mortgage will never get paid off ... 2. Turning the Air BNB into a Long Term Rental Property, down the line might pay off. 3. Yes, I agree that you brought a derelict SHELL back to life, through the work of many good people, including yourself. And you should be very proud. 4. Ethical debate: This IS a TINY HOUSE, not a family home (yet). I don't think a village property is hurting the rental market where you are, No ?? 5. You've taken all your T.H. stays and made some of those aspects yours, there. You did your homework and put in the blood, sweat, and tears, why not make a little money ?? 6. Sentimentality, you revived that house, you are "Reviving" your current home now. One day your brother might have one site as his own, and you the other !! The possibilities are endless. 7. First Year Blues ... yup, it might have been a "blight" year, but give it another year, and then reassess, Hmmm ?? If things don't rise up, you could always go long term rental with a tenant and make steady monthly income - Thereby keeping the property "Within Reach." Your tenant would be on the hook to pay for utilities and such, so your expenditures might be much lower, No?? Have a Merry Christmas up there, and keep warm and toasty. We await the next Great Bake Off Episode !!! Merry Merry form Montreal.
For what it's worth, here's my thoughts: ETHICAL? You bought an abandoned property and brought it back to life, and unlike many developers, you got your hands dirty and did a good amount yourself and turned the shell that it was into a home for you. You've since redeveloped another place that you are now living in. Do I think having the tiny house on AirBnB is untethical? NO not at all. You made it what it is, good luck to you with it :) TO SELL OR NOT Unless you need to release the equity to fund another purchase then I would say keep it, and use the AirBnB profits to pay off what you can. I see no wrong at all in what you've done/are doing, and in fact I think you are amazing for having done it, and more so for sharing the story with us all. I don't think you should worry about what people think, there are many keyboard warriors out there who just want to moan and belittle all the time. Ignore them!
Hi. I worked as a mortgage specialist for many years. Interest-only mortgages can work if you are looking to overpay and settle the whole thing in the medium-term (although few people are) - so, if you are confident you could chip away and pay it off in 10 to 15 years, that’s great. My advice is to overpay as much as you can as early as you can. When I was in the business, it worked out that for every £100 you paid off the capital, you were saving about the same amount in future interest payments over 25 years. There are always risks with loans because who knows what will happen in the future, but I hope that helps. Good luck!
That's a bit of a relief to hear because that was my plan haha. Guess I just wondered how worthwhile it is plugging all of that money into the mortgage vs. going with something like stocks or even flipping another property. Guess they all have their downsides though.
@@Patchy Good to see! In reality, few people do overpay, or they let it slide for a few years then have problems later, or they lose the means to overpay, etc. etc. I hope it works out. Good luck!
@@Patchy Think of it as one holding in a diversified portfolio. The tiny house may not make as much of a short-term return as the stock market, but it is less risky and will still do well in the long run. You may also be able to refinance the tiny house in the next few years.
I'm not the most financially savvy person but having tracked your story and that of your Tiny House over the past while, I would say, keep it. You've put a lot of love and effort and time into it, as a project, and as your home for a while, and it would be a shame to let it go. I know that if I was in your position, I wouldn't be able to let it go. It's natural and lovely to have an attachment to a place in which you've spent a lot of time, and a place that you've brought back to life and have moulded into the gorgeous place and space that it is. As to the ethical-ness of the venture, I would agree with everyone in the comments who says that there is absolutely no problem with renting out the Tiny House. If anything, I consider it a good thing that you are encouraging and inspiring people to visit your part of the world and to spend their money at a family venture/business (rather than a property owned by some huge soulless chain or franchise). Perhaps give it another year and see how things go at that stage, it may take off yet (even more than it has!). I wish I could come and stay, but living in the Land Down Under, it would be quite a trip.. maybe one day! Thanks for the video and for sharing. :)
My husband works away from home a lot and he can rely on airbnb when he's away. Hotels can be really expensive. It is your house you put the work into it you do whats right for you. I wish you all the best for the future.
@@Patchy he travels all over the uk and I think it depends on he is at the time and how long he's going to be in one place. I live just outside of Edinburgh and it can be really expensive to go up north. However the views are definately worth it.
Have no guilt about your tiny house. You're not a corporate guy who bought 50 houses in an area and now regular people have nowhere to live. The home is charming. Give it another year and with more information you can make a solid decision of where to go next. I much prefer staying in airbnb's to hotels; far more homey, and I love meeting the hosts.
Thank you for sharing how the year has gone. The way I look at it, you improved the street by taking an abandoned home and making it into a livable dwelling, you're improving the neighbourhood. I'm in Canada, the expenses from these types of properties can be claimed against the profit. In fact, many people don't want them making much in the year so they don't have to pay a lot of extra tax. I'm mot sure how it works in Scotland. An interest only mortgage is not a bad thing if you take the profits to pay of the principle but again, in Canada, the interest can be deducted from the profit to lower the net profit. I don't blame you for wanting to keep it. You put a lot of work into the home and this was your first 😉 There is always something special about a first. Business ventures take time to grow, next year could be even more profitable as your YT channel continues to grow. Plus, the guests who enjoyed their stay will tell others 😊
@conniePretula: A property business can set expenses against profit, but they’ve phased out mortgage interest tax relief and significantly reduced capital gains allowances when the property is sold.
I find paying down the mortgage is a viable alternative. After several homes bought and sold. Having No mortgage is a blessing, I did rent a half house ( duplex ) for several years, people need a place to live and are willing to pay. No one is forcing them to rent. ( it is a pain in the arse though at times)
There you go:460 Views, and 132 Likes by the end. We love following along in the life of George story :) I think you've done a great thing by turning an empty place into a Home.People who stay shop in town,and dine out too.They wander about doing exploring stuff and that can only help spread the words about your wonderful home and area.
Keep the house George. Talk with your brother about paying off the mortgage sooner rather than later. You'll have income later when you need it. Give the babies a pat for me.
You are very smart .2 houses at your young age .stop putting yourself down ..i personally dont like hassle so i only have one home ..i am not savvy to give you financial advice but you seem successful at what you do..would like to think you are also happy with your life .
You are the furthest thing from a faceless predatory AirBnB speculator buying the heart out of communities for profit. You’re a model of what a positive short term rental can be. You’re ethical, thoughtful and you pay your mom! Pretty wholesome, I’d say.
I would be delighted to stay in your tiny house because you are so thoughtful and detailed. Keep going for at least another year with Airbnb and reassess from there.
I think you are doing great! I (personally) would switch to a fixed rate mortgage and pay it down (I am not a banker - just a regular person)…this is a wonderful way to develop a family business…how about give it another year…? Maybe switch homes, and do an Air B&B with your home you are renovating now? I am SO impressed with your business sense…you are doing great!
If the fixed costs that exceeds the management, you should just not bother booking anyone in the winter months, given the cost of heating. Or increase the price during the winter months to offset the increase in heat. Your house isn't a family home and you put in a bunch of money and time to un-abandon it. Very few people would be willing to do something like that. This kind of ranks really low on being an ethical issue imo so you shouldn't feel bad. If I were you'd I'd still keep it and make some small adjustments and pay it off ASAP so it can truly just work for you. Also the fact that your mom likes working on it is a plus for her (which means its a plus for you).
I’d definitely put something towards the mortgage otherwise it won’t decrease. Also save a bit for repairs and general wear and tear. You’ll need to repaint every 5+ years etc. I’m curious what the value of the property was 1 year ago versus now. In my area prices have been climbing so that’s a hidden profit that will come when sold. If 109 is fair I’d look at how you could increase nights. In a small town maybe you could find locals who have guests coming over the holiday. A nice rental could be a huge advantage instead of everyone in one house. Wishing you a merry Christmas and a happy new year. May 2025 be a successful year for you.
I think it's a good idea to keep and continue with AirBnB, sounds like you've got a good set up with your brother and mum and my rough calculation shows that you're getting about 5-7% ROI a year on the 170k house, which is hopefully also going up in value! Also consider that most of the house value is in the mortgage so if you sold it you'd only be left with £50kish to invest somewhere else which you'd struggle to earn 10k a year from.
I hope you can change the mortgage so you pay some of the principal, more than the 10% you're allowed. It is a lovely place and I wish you all success with it.
What you are not counting here is the value of the property. It will go up and up based on the work you’ve done to it, and the market’s natural increases. so this is a great investment. You are building equity regardless of monthly profits. Real estate, over time, is always a good investment and often beats the stock market percentage-wise. I think the best option s to keep it as a rental, and consider using it for long term tenants rather than a holiday rental. Keep it until its value doubles or triples. In the meantime buy another and flip it.
Yay! George video, though I do feel a leetle cheated at not getting any kitty cat footage! Happy holidays to you and your family, I hope you all are well. My opinion is that you need to re-invest what profit you've made back into the place by paying down the mortgage on your current terms. Interest only is a crusher, look to change that whenever possible. You've only had it a year and you are profitable, great job! Keep it, real estate is a great long term investment. Pencil out a five year plan on your property to get a better sense of how the value will grow with time.
Keep it for another year and add some value on top of just renting it (could be advertised as an Tier 1,2,3... so they have a choice), such as: - possibility of guided tours around the local area (incl. transport if they needed), to places like local pubs, - offer home made food or from the local market/shops (make some deals with local artisans, restaurants etc.), so they can order ready dinner from local people and eat it in your place - any themed local festivals, traditions or artisan classes (baking classes, pottery anything else???) - if your visitors are from outside of Scotland, offer them a souvenir pack to take back with them (a box with your fav. local food, a wool hats, scarfs or a pair of socks, a one-use film camera (so they can take their own pictures during the visit and later print them), some local liqueur, beer or non mainstream Scottish whiskey from small brewery etc. - think of cosy Scottish cottages - minimalism is good, but how is your place different in style from a modern small house in, lets say, York or Chichester in the South of England There are many ideas that can make people want to visit your place.
One year is not enough time to make a decision. If you aren't strapped for cash, keep it. You worked hard to turn something so run down into something so beautiful. It's the loan that concerns me. I never knew of a mortgage that puts a cap on the max of annual principal payment. hmm.
Yeah I agree on the loan. There weren't really any good options when I last renewed the mortgage. Maybe I'm talking nonsense but I'm pretty sure interest only loans and a cap on the repayments are fairly common in the UK.
@@Patchy I’ve had interest only mortgages that were also base rate trackers too, so the monthly repayment was low for a few years, I made monthly overpayments to help pay the capital down, they like to know if you have a plan to pay the mortgage off?
Why on earth do you think it is unethical? This building was in ruin. YOU spent YOUR hard earned money rebuilding to modern standards and beyond. I don't understand who is making you feel guilty. This could never be a family home! It is a business and you also offer a service. You are bringing visitors to your village who spend money to eat and shop at other business. Local economy is key. Try another avenue of advertisement. Are their flower or garden shows? Have a listing of local events, festivals or interest. Castle tours. Whatever?? Cat petting? IDK. Are there any business or corporations near by for a corporate lease by the week or month? It would be best if you could refinance and have a mortgage where you are at least paying down the loan!!!! Thank you George. Hugs to Junior and Tigger. Thanks for the financial update and I don't mean to rant but this is what I would say to my own children.
Absolutely agree with this. You are bringing people to the area, George, and they spend money. It is a business. I think you need to advertise a bit more, and especially in N. America. It's a lovely place.
@eveningstar1 I 100% agree, but George's house was a crumbling abandoned building in a village that could benefit from the visitors. I feel like this is different than Blackstone or Blackrock buying up entire blocks of condos.
Because it's depriving someone who needs a long term rental, a place to live. Airbnb is a luxury which mainly benefits the owner. In Aus there's a huge rental shortage. People on holidays can stay in other types of accommodation leaving rentals for those who really need them.
I love that you beautifully fixed up an abandoned house that would otherwise have crumbled. I think you are on solid ground doing the AirBNB. One other option you didn’t mention is longer term rental, which wouldn’t make as much per night, but would be steadier income. And they could pay the utilities… just a thought. I’d live there!
You could install an extra layer of windows especially in the bedroom, keeping extra heat in. Also super thick curtains and duvet. Everything to encourage holiday makers to use less heating
@@Patchy you’ve turned a profit in the first year. That’s spectacular really. The property is still establishing its reputation. Honestly I’d stick with it at least another year. Preferably longer. You’re in profit. (If you’d lost horrifically I’d still suggest another year). Theoretically your property is only going up in value.
Thank you for the lovely video! Like everyone else is saying, rescuing an abandoned house is wonderful and I see no issues with the ethics; thank you for raising awareness, but what you've done is a net positive! And you're educating all of us on RUclips about the business side of things as well, and giving us wholesome entertainment. Someone else suggested only offering it during profitable months (once it's more established with data) and I agree. Then you can get a break, and not put in work only to lose money to heating/maintenance.
As another commenter mentioned, look into putting an upper limit on the thermostat. I would look into getting a fixed rate mortgage if that’s possible, or commit to over paying a certain amount each month as part of expenses so you can pay down the principle. I would stick it out for at least another year if you and your family are enjoying run in it. You can always sell later if you need to.
Another option that wasn't mentioned is to rent it out to a long term tenant. That way you can pad the mortgage a bit, in accordance with the rental rates in your area, to account for taxes and unexpected maintenance expenses, and then the tenant is responsible for heating, internet etc. It might not bring in as much profit but will also be less work and provide affordable housing to a local resident. It's an adorable place! 🤩Also, look at your investment over the long run. Once your mortgage is paid off you will be bringing in much more cash and also rents and property prices tend to go up over time. I would hang on to it. If you decide to stick with the Airbnb route, you could up the price a bit, say 125/night to offset some of the expenses. You can also book through your own web-site or offer a discount for return guests to book directly through you thus bypassing the Airbnb fees.
A few people have mentioned that so I might consider it! I didn't think about the own website angle either. I always felt like it would be too much hassle but it's maybe worth giving a shot.
@@Patchy It can be very easy nowadays to create your own website with a service like square space or wordpress that has an interactive calender to show availability and booking forms for very little cost < £20 a year if you set it up correctly and make it yourself, which can easily be done in an afternoon with the help of youtube and google to learn how to use the website building tools.
If you stop with the B&B, have you considered a full time rental? Lots of people would love to rent a tiny home. I know I could live quite happily in that lovely cottage. It's probably too small for a family though. Whatever pay down the mortgage as much as you can and as fast as you can.
I’d hang onto it for now since you’re still making a profit, which is awesome! It’d be cool to dig deeper into the solar panel idea, though I’m not sure if it would be affordable. What do you think about renting out the house only during the peak season and shutting it down in winter when heating costs are high and bookings are low? Also, boosting the number of bookings in the warmer months could really help your profits. What are you doing to attract more guests, and do you know what's stopping people from booking? It really depends on the area-if larger groups tend to travel there, maybe adding a fold-out couch could help. Or is there something else that might be holding back bookings?
I’m not sure how you heat your house but a heat pump is probably the best way to lower your electrical bill for heating as it’s much more efficient than a regular air conditioner. Just make sure you choose one that’s good for cold climates as those can work with temperatures well below freezing. Maybe it’s a better investment than solar for now.
I think you rescued a building . After all the work you and you're family did glad to see you're making some money out of the tiny cottage. I would be tempted to close in the Winter when its costing you money. You have done a brilliant job thanks for the update. Have a great Christmas.
Hello George, thanks for the video. So glad you made a profit your first year in operation. It was interesting your choices for mortgages. I never knew that it would factor in what type you could get. Thank you for your honesty and willingness to share. All the best to you
I’m torn over Airbnb … my friends and family certainly use .. and it works great for that purpose when travelling etc. However our family cottage that we’ve had for nearly 45 years is now surrounded by them .. often by people who don’t care about disrupting peace and quiet, etc. No question they tie up homes that could well be sold to families, and has driven up the housing market pricing. The future concerns me in many ways … this is one. Our kids can’t afford to buy homes if there are even any left to buy ….
How does the repayment option compare with the interest only amount? Be very careful with solar panels You could put the price up a little bit to say £120 a night and include a cuddle with Junior! I’d definitely pay for that! Definitely hang onto the house, there’s no ethical problem as it’s not a family home so you’re not depriving anyone of anything
I think particularly during your busiest months like August, you should absolutely be raising the price in line with everyone else who does the same, tourists flock in for the fringe and go travel around. Also if you don't have one already, you could try adding a log burner to reduce heating cost (they pay for additional fuel), but also adding a cozy winter vibe
Had a great stay at your tiny house in March on the way up to the Highlands, planning for another at the end of next March. I'll echo what others have said, it is the perfect example of what I'd expect from an AirBnb and it really contributed to the quality of my holiday. As for future ideas if it doesn't pan out, I'd say turn it in to a posh nightclub. Can't imagine there's much local competition and you could really put that bouncer's skills to the test (just please wait until after my visit next March!). In all seriousness, I'd be looking at the fluctuations on the expenses because it looks like there's a lot of variation there month-to-month. Can't remember if your heating was on a schedule or manual only when I stayed, but I know other places I've been had measures in place to try and minimise accidental over-useage. ~£200 a month on a 'leccy bill would have me wincing!
I had an airbnb for a year in the US. It was a tremendous amount of work. An off season option you might consider is to house someone for 3 months at a time - traveling nurses, visiting academics or business people, etc. Those visitors have their housing costs paid by their employer and you can rely on a set rate, higher to cover FT heating, during their rental. The other thing I did, because here the expense for a turnover was $150USD, was set a minimum of 3 nights. After a year, I returned to a full time renter. I really enjoyed most of the guests but the expenses were high, it was very time consuming, someone almost burned the house down and I twice found evidence of illegal drugs on the property. Yes, all my guests were vetted. Kudos to your mom for doing the cleaning and staging, it's so much work.
Give it at least two years. You will get returning guests,"regulars" and your occupancy will increase every year you stay in business. Raise your prices! Offer weekly discounts. Good luck!
I was surprised that you didn’t fit a multi fuel stove when you were renovating it as I thought everyone in Scotland had one. Would certainly keep heating costs down as it's a tiny home which would heat up fast. Trouble with Air B&B's is the renters can go out an leave the heating on full blast all day cos they know you're paying for it not them. Unless you fit timers on your rads you can't really control that
I like your venture idea, and find have no problem with it being let out as you are. In looking for such accommodation in Scotland it does help to have choices. It takes time for the financial balance to find its spot. Keep going is my point.
Give it another year or two as it takes a while for word to spread amongst the AirBnB community and reviews to build up. Once you gain that reputation and your profit increases, you can start paying down the mortgage instead of just the interest. And in another few years, the value of the property would be increasing too so a win-win scenario.
As someone who hadn't much luck with her family(abuse and other stuff, because of this i only have cotact to my halfsister) i love how close you are with your family. It's so cute.
I don't like short term rentals as it's usually a cancer on towns but in your case it's a perfect example of something that's deserving of it. It's a unique house that you renovated yourself. It's not the same as people buying out a block of flats, changing the furniture and short term renting in the middle of a city.
You should be so proud! It sounds like you have good judgment on what you should do and how you should do it, and it seems like you’ll have support with you along the way. Your transparency is commendable as well, something you don’t have to do but I’m sure it serves people who are interested in doing the same thing. Thanks for also sharing your favorite musicals 😅 merry Christmas to you too!
It is relatable and wholesome. What’s wrong with it? You bought and saved an abandoned building, worked with your family and created a small business. It’s awesome. You’re awesome! Happy New Year, Patchy. Keep the relatable and wholesome content coming please.
Be sure you know if the solar panels would be facing the best direction for optimal efficiency. Also take into account that solar panels need to be periodically washed, so DIY or paying someone. And finally, I'd hate to see the panels damaged when you're doing your Caber Tossing.
I'm fairly sure the front faces SE so that would be OK, no? It's not too high and I have ladders so I'm sure I could wash them myself. The caber tossing is definitely still a concern though.
We have a solar gate here in California. It stops working for a couple of weeks every winter when we have more than a couple of rainy/overcast days in a row. Depending on Solar Heating when you have so much less sun than we do seems like it might not work so well...
Fragrance the house with a candle, then sell those candles from the house with an honesty cash box... Label everything good in the house with a QR code (from the bed to the, furniture to the oven, rugs , towels, hand soaps etc etc ) so if people want anything you've got there, they can have an affiliate link to buy it. For every stay that doesn't have a booking the day after, call the occupants and offer them an extra day for £45. I could probably think of more stuff, but this is already a long comment
I wonder how much electricity solar panels would generate in the winter in Scotland - not a very sunny time? I think over time happy customers will generate more business for you and you will be able to rent without going through AirB&B so your profit will go up a bit.
The interest only mortgage is really cutting you short. Start moving to a fixed rate and start paying off the mortgage sum. That way you can actually start building capital and having the Airbnb cover you mortgage pay off.
Loved the series so far, the idea of continuing with Airbnb sounds like the best option, it’s paying off the mortgage, and supporting your family and as long as it is making money then what is the real downside
I love your home, George, and I love how you resurrected it from a "deserted" space into a real home. You did your community a service, I think, by doing that. Thanks for explaining the ethical concerns you have, as I didn't understand what they could be. Your home is large enough for one or two people only (with maybe a nice pet 😃), but not a family with children. So I don't believe you are buying up family-with-kids-friendly real estate. Also, by renting your home, you are bringing visitors to the area, and hopefully they are helping to support local merchants. Perhaps getting their take on it would be useful. Thanks for another great video.
keep it and rent it out. The tenant pays the taxes; you can get a cheaper repayment mortgage and the tenant will cover the mortgage; pays the electric bills and you keep the house which grows in value over the years.
Hi George.....I hope you and your family have a wonderful Christmas and a very happy birthday to you. Looking forward to my second year of enjoying your videos and final renovation reveal!
Stick with it george, it's not a family home taken out of circulation. It's a small place for people to stay, it brings people to your area, others benefit from your endeavour and yes , there will be an emotional tie, don't let that go, it's worth more than you know.
If it’s yours, do what you want! If you want to rent it out that’s up to you! You put in the hard work before the squatters moved in! Keep going with it, it’s obvious. 👍🏼 Keep an eye on new mortgage deals as sometimes it’s possible to get a lower interest rate, and a repayment mortgage too! Good luck. Merry Christmas 🎄
Profitable in your first year is pretty good man :) solar panels are a big expense but might be a good shout - a wee log burner would be a nice touch but not sure if that would affect your insurance costs. Not sure if you would consider a long term let? Would save your mum and brother admin/cleaning time. Ethically, your house is not a family home, it's very unique, so renting is fine by me.
I'll need to look at the log burner idea! It'd definitely add to the cosy vibe I want ha. Long term let/selling are the two options I'm considering if it doesn't seem viable after this next year I reckon.
Your point about not buying an inexpensive house near a school and turning it into an AirBNB makes sense to me. On the other hand, I imagine that there are a lot of people like me, who usually prefer to rent something in/near a city, rather than a shepherd's hut, just for being close to stores. I also think that the solar panel idea is a good one, especially if you have a spot for battery storage. We have solar panels, and they have reduced our electricity bills by a lot. If your brother and mum are happy helping you run it, I think it could bring in more income as more people learn about it.
Hope you all find this little update interesting! If you have any questions or suggestions, just let me know. 🤠
Would it be possible to make it a long-term rental property?
Sounds like year one was a success! Congrats! 🤔...maybe Mum should get her cut AND some monthly sweets or flowers? lol And you won't catch me shaming you for owning the property! If I ever get to book my bucket list trip to Scotland I don't want to stay in a boring hotel! Your rental is the first place I'll book!
@@Suebee1988 That's what I was thinking. Steady income and no Air BnB or cleaning expenses. As long as you found good tenants who won't trash the place. :)
I live in USA and could see me living tiny. Now I live in 4 bedroom and never go upstairs. Hate paying $2-300 for heat or AC I like your place
I know you said you didn’t really want to increase the price… but you could do it seasonally? If it’s £109 a night in the summer, make it £120 a night in the winter. That way it’s still very reasonable, but it puts a dent in the extra heating costs.
1st year of a new business is usually the least profitable. Give it another year. You saved that house which is highly commendable.
Giving it another year seems to be the common response here, so it's looking like a good shout!
@@Patchy with all the good reviews it will only snowball from there
Your tiny house is what I would consider the perfect example of what a tourist Airbnb experience should be.
When I got it valued, that's what the real estate agent kept saying haha. I asked her if I should sell or rent it out and she was like 'holiday home for couples'.
@@Patchy
Smart agent 😉
Totally agree, compact, comfortable and supporting someone who restored it from scratch. Ethically totally sound
Lovely project and it is fabulous to see your updates ❤
Ok. Now I am convinced you are the loveliest person on RUclips. You saved that little house, and brought it back to life. And you're allowing others to share in that. And not depriving anyone of anything in the process. Give your business time, as soon as the mortgage is paid off you will have a very welcome earner for the long term, and like you said, you and your sweet cats can always live in it yourself.
Aye hes a really good lad.
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My daughter owned a cabin that she put on AirBnB. After the first year she realized it was profitable from March through October so she started offering it only during those months. She liked doing that as it gave her profits and then a break when she wanted a rest from running it.
In some places, there's a market from September/October to May, with university students and teachers. In Ireland, the university term is from October to end May; or at least it was in the one I attended.
If a place is isolated but scenic, there are many who might value living there over Winter and Spring: eg writers or people who want a retreat for some reason ....
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You took this from an abandoned house to something adding value to your community by bringing people there. This is a GOOD thing. Your Airbnb is a positive thing. ❤🏡❤
And tourists bring life to an area, and spend money!
.
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Former banker here. Interest-only mortgages give me heartburn from a consumer borrower pespective and a risk perspective. Such loans are very risky, especially in a rising interest rate environment. My strong personal preference and advice is to convert when one can, to a fixed rate mortgage and pay down the principal, including earlier when one can.
I've grabbed my sharpest crayon and noted this down. Thank you.
Agree. I would apply your profits to pay down the principal.
I didn’t know people still had interest only mortgages in the UK.
Same same. My best friend has been crippled by one. The second he told me about it, I was concerned, and now he has to find an extra £950 a month, and it's REALLY going to hurt. If it was me, I simply couldn't afford that sort of increase.
that's it! just before the pandemic I took out a fixed-rate mortgage in Poland (banks currently offer a maximum of 5 years). the installments were only slightly higher, but in retrospect it was very worthwhile. first, the rates dropped to almost zero for a while, but then the madness began. when interest rates were soaring and people's loan installments were practically doubling, I could sleep peacefully. this wonderful time for me of very low interest rates compared to the current ones is over, but I decided to take another 5 years of a fixed interest rate. I prefer to know how much I will pay in the next 5 years and have peace of mind. the rates are unlikely to drop to zero again (certainly not in the next few years). even though the interest rate is higher than in 2019, I have paid off so much in these 5 years that it does not hurt me at all. this is the best decision of my life and I recommend it to everyone!
I would keep it and see how you can optimize the business.
It's your beautiful first baby and it's an incredibly nice vacation home. You did a good thing with this project, you took something old and rather hopeless and made it a quality home.
I don't blame you for feeling sentimental with your tiny home, George, especially with all the love you put into it It makes sense that it would be hard to let go of it. It makes total sense to make some profit of your hard work until the time comes for you to move back in if that suits you. I think you've done great all round!
Your tiny home is the perfect property for airbnb. It was abandoned, no-one wanted it at all. It's future was as a pile of rubble. You saved it. No-one else did. Therefore you have the absolute right to choose what happens to it. As it happens, it is not suitable as a family home but even if it was, it's no-one's business but yours to decide it's future. My advice is that while it's paying for itself, keep it as an investment. Retirement is some way off for you yet but now is the time to start thinking about ensuring you have a comfortable one.
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Congratulations! You have completed your first year of owning a working Air B & B A N D you made profit! Does not matter if it is one million or one pound. You made profit!!! That is really a major accomplishment for any business for the first year! Most businesses need at least 5 yrs before they start making profit. Well done!!!! Be very proud. Cheers from Florida USA.
Merry Christmas to you and your family and of course the fur-babies. See you in the next one.
I have zero experience but my advice is give it another year before making a decision. On another note, I switched to a larger screen to watch the video hoping for a Junior or Tigger cameo. Your videos must always include these cameos!
I think waiting another year is a good call because then it won't be as much of a reflex decision, whatever I do. And I'm deeply sorry about the lack of Junior and Tigger. I will sort this in the future.
After all you did to restore it I can't imagine letting it go. I'm sentimental that way.🥰 You are a wise man & deep thinker so I know you'll do what's best for you in the long run. Best wishes to you & 🐈🐈🧡🧡🧡
I think that's what it comes down to, just finding it hard to let it go haha.
@@Patchy I'm sure that you'll get over it quickly if you do sell, but I really understand the feeling. I feel the same about my house.
I don't see a problem with ethics at all, George. It's definitely not a family home, so you are not taking housing from people with children who need to be close to the school. Also, if you hadn't purchased the place, it might still be abandoned and unliveable. Your profit might have been small, but at least you did have a profit and it will probably grow in the coming years. You could also rent out to a long-term tenant and have a steady income, if not a huge one.
Thanks for sharing! ♥♥♥
Glad I'm not coming across like a total knobhead there then haha! Renting long term is something that a lot of people are suggesting so that's something I might look into. :)
This is true, you possibly saved a building’s life here George! It seems like what you did was very positive for the building, like it’s been mentioned, you turned it into a liveable home! It might be still sitting crumbling away if you hadn’t taken it on..
@jemma50 - Families, with children, are not the only important people. There are single people & couples looking for a home.
@@anitaevans2432 I am aware of that, but George seemed to be concerned about taking a home away from families who would want to be close to the nearby school.
@@Patchy ♥♥♥
You created a business, helped the economy and employed local tradesman.
And you created revenue for the local restaurant, shops etc tourist spend money while vacationing.
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I think we subscribers need to do our job AND either book a stay or tell our friends/family and spread the word about this cutely adorable place! 😊
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Hi George, Junior, and Tigger !! In reading the comments, prior to posting this I agree on several points:
1. If you are constantly paying off interest, and not principle on a monthly basis, UGH that mortgage will never get paid off ...
2. Turning the Air BNB into a Long Term Rental Property, down the line might pay off.
3. Yes, I agree that you brought a derelict SHELL back to life, through the work of many good people, including yourself. And you should be very proud.
4. Ethical debate: This IS a TINY HOUSE, not a family home (yet). I don't think a village property is hurting the rental market where you are, No ??
5. You've taken all your T.H. stays and made some of those aspects yours, there. You did your homework and put in the blood, sweat, and tears, why not make a little money ??
6. Sentimentality, you revived that house, you are "Reviving" your current home now.
One day your brother might have one site as his own, and you the other !! The possibilities are endless.
7. First Year Blues ... yup, it might have been a "blight" year, but give it another year, and then reassess, Hmmm ??
If things don't rise up, you could always go long term rental with a tenant and make steady monthly income - Thereby keeping the property "Within Reach."
Your tenant would be on the hook to pay for utilities and such, so your expenditures might be much lower, No??
Have a Merry Christmas up there, and keep warm and toasty. We await the next Great Bake Off Episode !!! Merry Merry form Montreal.
And that is an educational video from the one and only lovable, George.
🤠
For what it's worth, here's my thoughts:
ETHICAL?
You bought an abandoned property and brought it back to life, and unlike many developers, you got your hands dirty and did a good amount yourself and turned the shell that it was into a home for you. You've since redeveloped another place that you are now living in.
Do I think having the tiny house on AirBnB is untethical? NO not at all. You made it what it is, good luck to you with it :)
TO SELL OR NOT
Unless you need to release the equity to fund another purchase then I would say keep it, and use the AirBnB profits to pay off what you can.
I see no wrong at all in what you've done/are doing, and in fact I think you are amazing for having done it, and more so for sharing the story with us all.
I don't think you should worry about what people think, there are many keyboard warriors out there who just want to moan and belittle all the time. Ignore them!
Couldnt agree more regarding the Ethincs
Hi. I worked as a mortgage specialist for many years. Interest-only mortgages can work if you are looking to overpay and settle the whole thing in the medium-term (although few people are) - so, if you are confident you could chip away and pay it off in 10 to 15 years, that’s great. My advice is to overpay as much as you can as early as you can. When I was in the business, it worked out that for every £100 you paid off the capital, you were saving about the same amount in future interest payments over 25 years. There are always risks with loans because who knows what will happen in the future, but I hope that helps. Good luck!
That's a bit of a relief to hear because that was my plan haha. Guess I just wondered how worthwhile it is plugging all of that money into the mortgage vs. going with something like stocks or even flipping another property. Guess they all have their downsides though.
@@Patchy Good to see! In reality, few people do overpay, or they let it slide for a few years then have problems later, or they lose the means to overpay, etc. etc. I hope it works out. Good luck!
@@Patchy Think of it as one holding in a diversified portfolio. The tiny house may not make as much of a short-term return as the stock market, but it is less risky and will still do well in the long run. You may also be able to refinance the tiny house in the next few years.
I wouldn't let go of the house if it were mine! All the best, George! ❤️
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I'm not the most financially savvy person but having tracked your story and that of your Tiny House over the past while, I would say, keep it.
You've put a lot of love and effort and time into it, as a project, and as your home for a while, and it would be a shame to let it go. I know that if I was in your position, I wouldn't be able to let it go. It's natural and lovely to have an attachment to a place in which you've spent a lot of time, and a place that you've brought back to life and have moulded into the gorgeous place and space that it is.
As to the ethical-ness of the venture, I would agree with everyone in the comments who says that there is absolutely no problem with renting out the Tiny House. If anything, I consider it a good thing that you are encouraging and inspiring people to visit your part of the world and to spend their money at a family venture/business (rather than a property owned by some huge soulless chain or franchise).
Perhaps give it another year and see how things go at that stage, it may take off yet (even more than it has!).
I wish I could come and stay, but living in the Land Down Under, it would be quite a trip.. maybe one day!
Thanks for the video and for sharing. :)
My husband works away from home a lot and he can rely on airbnb when he's away. Hotels can be really expensive. It is your house you put the work into it you do whats right for you. I wish you all the best for the future.
Interesting! I guess it depends on the area but I've definitely seen instances where hotels end up being much cheaper than Airbnb haha.
@@Patchy he travels all over the uk and I think it depends on he is at the time and how long he's going to be in one place. I live just outside of Edinburgh and it can be really expensive to go up north. However the views are definately worth it.
I hope 2025 is a prosperous year for your tiny house 🏡
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The longer your home is on Airbnb the more bookings you will have. It seems like a perfect property for people visiting the area.
Have no guilt about your tiny house. You're not a corporate guy who bought 50 houses in an area and now regular people have nowhere to live. The home is charming. Give it another year and with more information you can make a solid decision of where to go next. I much prefer staying in airbnb's to hotels; far more homey, and I love meeting the hosts.
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Thank you for sharing how the year has gone. The way I look at it, you improved the street by taking an abandoned home and making it into a livable dwelling, you're improving the neighbourhood.
I'm in Canada, the expenses from these types of properties can be claimed against the profit. In fact, many people don't want them making much in the year so they don't have to pay a lot of extra tax. I'm mot sure how it works in Scotland. An interest only mortgage is not a bad thing if you take the profits to pay of the principle but again, in Canada, the interest can be deducted from the profit to lower the net profit.
I don't blame you for wanting to keep it. You put a lot of work into the home and this was your first 😉 There is always something special about a first.
Business ventures take time to grow, next year could be even more profitable as your YT channel continues to grow. Plus, the guests who enjoyed their stay will tell others 😊
@conniePretula: A property business can set expenses against profit, but they’ve phased out mortgage interest tax relief and significantly reduced capital gains allowances when the property is sold.
I find paying down the mortgage is a viable alternative. After several homes bought and sold. Having No mortgage is a blessing,
I did rent a half house ( duplex ) for several years, people need a place to live and are willing to pay. No one is forcing them to rent. ( it is a pain in the arse though at times)
@ yep I’m out of touch . Also I’m out of debt, owe no one anything, and pay every bill off before purchasing anything, yep out of touch that’s me.
@@SteamyGif you think renting is worse than the alternatives you're the one out of touch
There you go:460 Views, and 132 Likes by the end. We love following along in the life of George story :) I think you've done a great thing by turning an empty place into a Home.People who stay shop in town,and dine out too.They wander about doing exploring stuff and that can only help spread the words about your wonderful home and area.
Appreciate having you along for the journey and for the kind words. :)
Keep the house George. Talk with your brother about paying off the mortgage sooner rather than later. You'll have income later when you need it.
Give the babies a pat for me.
You are very smart .2 houses at your young age .stop putting yourself down ..i personally dont like hassle so i only have one home ..i am not savvy to give you financial advice but you seem successful at what you do..would like to think you are also happy with your life .
At the risk of putting myself down, I don't feel terribly smart haha. Thank you though!
You are the furthest thing from a faceless predatory AirBnB speculator buying the heart out of communities for profit. You’re a model of what a positive short term rental can be. You’re ethical, thoughtful and you pay your mom! Pretty wholesome, I’d say.
I would be delighted to stay in your tiny house because you are so thoughtful and detailed. Keep going for at least another year with Airbnb and reassess from there.
Your ratings on the Airbnb site are so great!! Maybe stick it out for another year and evaluate after that…
I think you are doing great! I (personally) would switch to a fixed rate mortgage and pay it down (I am not a banker - just a regular person)…this is a wonderful way to develop a family business…how about give it another year…? Maybe switch homes, and do an Air B&B with your home you are renovating now? I am SO impressed with your business sense…you are doing great!
I used to keep the books for a man who owned an ice cream factory with 10 stores. He told me his first 2 years were “in the red.” THEN it took off.
If the fixed costs that exceeds the management, you should just not bother booking anyone in the winter months, given the cost of heating. Or increase the price during the winter months to offset the increase in heat. Your house isn't a family home and you put in a bunch of money and time to un-abandon it. Very few people would be willing to do something like that. This kind of ranks really low on being an ethical issue imo so you shouldn't feel bad. If I were you'd I'd still keep it and make some small adjustments and pay it off ASAP so it can truly just work for you. Also the fact that your mom likes working on it is a plus for her (which means its a plus for you).
It's always a great watch whenever it's one of your videos :D
Thanks man!
I’d definitely put something towards the mortgage otherwise it won’t decrease.
Also save a bit for repairs and general wear and tear. You’ll need to repaint every 5+ years etc.
I’m curious what the value of the property was 1 year ago versus now.
In my area prices have been climbing so that’s a hidden profit that will come when sold.
If 109 is fair I’d look at how you could increase nights. In a small town maybe you could find locals who have guests coming over the holiday. A nice rental could be a huge advantage instead of everyone in one house.
Wishing you a merry Christmas and a happy new year. May 2025 be a successful year for you.
I think it's a good idea to keep and continue with AirBnB, sounds like you've got a good set up with your brother and mum and my rough calculation shows that you're getting about 5-7% ROI a year on the 170k house, which is hopefully also going up in value! Also consider that most of the house value is in the mortgage so if you sold it you'd only be left with £50kish to invest somewhere else which you'd struggle to earn 10k a year from.
I hope you can change the mortgage so you pay some of the principal, more than the 10% you're allowed. It is a lovely place and I wish you all success with it.
What you are not counting here is the value of the property. It will go up and up based on the work you’ve done to it, and the market’s natural increases. so this is a great investment. You are building equity regardless of monthly profits. Real estate, over time, is always a good investment and often beats the stock market percentage-wise. I think the best option s to keep it as a rental, and consider using it for long term tenants rather than a holiday rental. Keep it until its value doubles or triples. In the meantime buy another and flip it.
I would suggest this: get a Canadian to move in there in winter! we are less cold and require less heat)
its always nice seeing your videos, cheers!
Thank you! :)
Yay! George video, though I do feel a leetle cheated at not getting any kitty cat footage! Happy holidays to you and your family, I hope you all are well. My opinion is that you need to re-invest what profit you've made back into the place by paying down the mortgage on your current terms. Interest only is a crusher, look to change that whenever possible. You've only had it a year and you are profitable, great job! Keep it, real estate is a great long term investment. Pencil out a five year plan on your property to get a better sense of how the value will grow with time.
That all seems like smart advice. Thank you. :)
October: "I guess people wanted to come to Scotland for Hallowe'en." That had me rolling on the floor. I love your sense of humor.
Keep it for another year and add some value on top of just renting it (could be advertised as an Tier 1,2,3... so they have a choice), such as:
- possibility of guided tours around the local area (incl. transport if they needed), to places like local pubs,
- offer home made food or from the local market/shops (make some deals with local artisans, restaurants etc.), so they can order ready dinner from local people and eat it in your place
- any themed local festivals, traditions or artisan classes (baking classes, pottery anything else???)
- if your visitors are from outside of Scotland, offer them a souvenir pack to take back with them (a box with your fav. local food, a wool hats, scarfs or a pair of socks, a one-use film camera (so they can take their own pictures during the visit and later print them), some local liqueur, beer or non mainstream Scottish whiskey from small brewery etc.
- think of cosy Scottish cottages - minimalism is good, but how is your place different in style from a modern small house in, lets say, York or Chichester in the South of England
There are many ideas that can make people want to visit your place.
One year is not enough time to make a decision. If you aren't strapped for cash, keep it. You worked hard to turn something so run down into something so beautiful. It's the loan that concerns me. I never knew of a mortgage that puts a cap on the max of annual principal payment. hmm.
Yeah I agree on the loan. There weren't really any good options when I last renewed the mortgage. Maybe I'm talking nonsense but I'm pretty sure interest only loans and a cap on the repayments are fairly common in the UK.
@@Patchy I’ve had interest only mortgages that were also base rate trackers too, so the monthly repayment was low for a few years, I made monthly overpayments to help pay the capital down, they like to know if you have a plan to pay the mortgage off?
Logic is highly over-rated sometimes, George! Sometimes, a "gut" feeling is the right one to follow.
Very true indeed!
Why on earth do you think it is unethical? This building was in ruin. YOU spent YOUR hard earned money rebuilding to modern standards and beyond. I don't understand who is making you feel guilty. This could never be a family home!
It is a business and you also offer a service.
You are bringing visitors to your village who spend money to eat and shop at other business. Local economy is key. Try another avenue of advertisement. Are their flower or garden shows?
Have a listing of local events, festivals or interest. Castle tours. Whatever?? Cat petting? IDK.
Are there any business or corporations near by for a corporate lease by the week or month?
It would be best if you could refinance and have a mortgage where you are at least paying down the loan!!!! Thank you George. Hugs to Junior and Tigger.
Thanks for the financial update and I don't mean to rant but this is what I would say to my own children.
Absolutely agree with this. You are bringing people to the area, George, and they spend money. It is a business. I think you need to advertise a bit more, and especially in N. America. It's a lovely place.
Short term rentals are one of the biggest contributers to the housing market squeeze. That’s the ethical challenge.
@eveningstar1 I 100% agree, but George's house was a crumbling abandoned building in a village that could benefit from the visitors. I feel like this is different than Blackstone or Blackrock buying up entire blocks of condos.
@moth1967 Me too
Because it's depriving someone who needs a long term rental, a place to live. Airbnb is a luxury which mainly benefits the owner. In Aus there's a huge rental shortage. People on holidays can stay in other types of accommodation leaving rentals for those who really need them.
Great honesty, rarely seen online. Let’s see more of the cat.
I love that you beautifully fixed up an abandoned house that would otherwise have crumbled. I think you are on solid ground doing the AirBNB. One other option you didn’t mention is longer term rental, which wouldn’t make as much per night, but would be steadier income. And they could pay the utilities… just a thought. I’d live there!
You could install an extra layer of windows especially in the bedroom, keeping extra heat in. Also super thick curtains and duvet. Everything to encourage holiday makers to use less heating
One of these days my holiday and your tiny house' availability will line up. We've tried twice. 2025 we'll give it a go again 😅
I look forward to seeing how the next year (and few years) go. Long term I think you'll be sound
Cheers Chris!
@@Patchy you’ve turned a profit in the first year. That’s spectacular really. The property is still establishing its reputation. Honestly I’d stick with it at least another year. Preferably longer. You’re in profit. (If you’d lost horrifically I’d still suggest another year). Theoretically your property is only going up in value.
Thank you for the lovely video! Like everyone else is saying, rescuing an abandoned house is wonderful and I see no issues with the ethics; thank you for raising awareness, but what you've done is a net positive! And you're educating all of us on RUclips about the business side of things as well, and giving us wholesome entertainment.
Someone else suggested only offering it during profitable months (once it's more established with data) and I agree. Then you can get a break, and not put in work only to lose money to heating/maintenance.
As another commenter mentioned, look into putting an upper limit on the thermostat. I would look into getting a fixed rate mortgage if that’s possible, or commit to over paying a certain amount each month as part of expenses so you can pay down the principle. I would stick it out for at least another year if you and your family are enjoying run in it. You can always sell later if you need to.
Another option that wasn't mentioned is to rent it out to a long term tenant. That way you can pad the mortgage a bit, in accordance with the rental rates in your area, to account for taxes and unexpected maintenance expenses, and then the tenant is responsible for heating, internet etc. It might not bring in as much profit but will also be less work and provide affordable housing to a local resident. It's an adorable place! 🤩Also, look at your investment over the long run. Once your mortgage is paid off you will be bringing in much more cash and also rents and property prices tend to go up over time. I would hang on to it.
If you decide to stick with the Airbnb route, you could up the price a bit, say 125/night to offset some of the expenses. You can also book through your own web-site or offer a discount for return guests to book directly through you thus bypassing the Airbnb fees.
A few people have mentioned that so I might consider it! I didn't think about the own website angle either. I always felt like it would be too much hassle but it's maybe worth giving a shot.
@@Patchy It can be very easy nowadays to create your own website with a service like square space or wordpress that has an interactive calender to show availability and booking forms for very little cost < £20 a year if you set it up correctly and make it yourself, which can easily be done in an afternoon with the help of youtube and google to learn how to use the website building tools.
Thank you for being so transparent. This is really useful information. Much respect from England.
If you stop with the B&B, have you considered a full time rental? Lots of people would love to rent a tiny home. I know I could live quite happily in that lovely cottage. It's probably too small for a family though. Whatever pay down the mortgage as much as you can and as fast as you can.
I’d hang onto it for now since you’re still making a profit, which is awesome! It’d be cool to dig deeper into the solar panel idea, though I’m not sure if it would be affordable. What do you think about renting out the house only during the peak season and shutting it down in winter when heating costs are high and bookings are low? Also, boosting the number of bookings in the warmer months could really help your profits. What are you doing to attract more guests, and do you know what's stopping people from booking? It really depends on the area-if larger groups tend to travel there, maybe adding a fold-out couch could help. Or is there something else that might be holding back bookings?
This is so lovely to see. I'm hoping for you to keep on running it as an air bnb; but whatever you choose I'm rooting for ya!
I’m not sure how you heat your house but a heat pump is probably the best way to lower your electrical bill for heating as it’s much more efficient than a regular air conditioner. Just make sure you choose one that’s good for cold climates as those can work with temperatures well below freezing. Maybe it’s a better investment than solar for now.
I think you rescued a building . After all the work you and you're family did glad to see you're making some money out of the tiny cottage. I would be tempted to close in the Winter when its costing you money. You have done a brilliant job thanks for the update. Have a great Christmas.
Hello George, thanks for the video. So glad you made a profit your first year in operation. It was interesting your choices for mortgages. I never knew that it would factor in what type you could get. Thank you for your honesty and willingness to share. All the best to you
I’m torn over Airbnb … my friends and family certainly use .. and it works great for that purpose when travelling etc. However our family cottage that we’ve had for nearly 45 years is now surrounded by them .. often by people who don’t care about disrupting peace and quiet, etc. No question they tie up homes that could well be sold to families, and has driven up the housing market pricing. The future concerns me in many ways … this is one. Our kids can’t afford to buy homes if there are even any left to buy ….
How does the repayment option compare with the interest only amount?
Be very careful with solar panels
You could put the price up a little bit to say £120 a night and include a cuddle with Junior! I’d definitely pay for that!
Definitely hang onto the house, there’s no ethical problem as it’s not a family home so you’re not depriving anyone of anything
man when ever i feel anxiety i just click on one of your vids, so calming
I think particularly during your busiest months like August, you should absolutely be raising the price in line with everyone else who does the same, tourists flock in for the fringe and go travel around.
Also if you don't have one already, you could try adding a log burner to reduce heating cost (they pay for additional fuel), but also adding a cozy winter vibe
Had a great stay at your tiny house in March on the way up to the Highlands, planning for another at the end of next March. I'll echo what others have said, it is the perfect example of what I'd expect from an AirBnb and it really contributed to the quality of my holiday. As for future ideas if it doesn't pan out, I'd say turn it in to a posh nightclub. Can't imagine there's much local competition and you could really put that bouncer's skills to the test (just please wait until after my visit next March!). In all seriousness, I'd be looking at the fluctuations on the expenses because it looks like there's a lot of variation there month-to-month. Can't remember if your heating was on a schedule or manual only when I stayed, but I know other places I've been had measures in place to try and minimise accidental over-useage. ~£200 a month on a 'leccy bill would have me wincing!
I had an airbnb for a year in the US. It was a tremendous amount of work. An off season option you might consider is to house someone for 3 months at a time - traveling nurses, visiting academics or business people, etc. Those visitors have their housing costs paid by their employer and you can rely on a set rate, higher to cover FT heating, during their rental. The other thing I did, because here the expense for a turnover was $150USD, was set a minimum of 3 nights. After a year, I returned to a full time renter. I really enjoyed most of the guests but the expenses were high, it was very time consuming, someone almost burned the house down and I twice found evidence of illegal drugs on the property. Yes, all my guests were vetted. Kudos to your mom for doing the cleaning and staging, it's so much work.
Give it at least two years. You will get returning guests,"regulars" and your occupancy will increase every year you stay in business. Raise your prices! Offer weekly discounts. Good luck!
Who are your clients? International folks? Local, Scotland folks?
A mixture! Had people from as close as Edinburgh and had people from as far as Australia!
I was surprised that you didn’t fit a multi fuel stove when you were renovating it as I thought everyone in Scotland had one. Would certainly keep heating costs down as it's a tiny home which would heat up fast.
Trouble with Air B&B's is the renters can go out an leave the heating on full blast all day cos they know you're paying for it not them. Unless you fit timers on your rads you can't really control that
I really like you content George. There is just such a nice vibe to it all
Cheers Damien!!
I like your venture idea, and find have no problem with it being let out as you are. In looking for such accommodation in Scotland it does help to have choices. It takes time for the financial balance to find its spot. Keep going is my point.
Give it another year or two as it takes a while for word to spread amongst the AirBnB community and reviews to build up. Once you gain that reputation and your profit increases, you can start paying down the mortgage instead of just the interest. And in another few years, the value of the property would be increasing too so a win-win scenario.
That's a fair point and a sensible plan. I think with another year I'll have a more definite answer of whether it's a good idea.
As someone who hadn't much luck with her family(abuse and other stuff, because of this i only have cotact to my halfsister) i love how close you are with your family. It's so cute.
I don't like short term rentals as it's usually a cancer on towns but in your case it's a perfect example of something that's deserving of it. It's a unique house that you renovated yourself. It's not the same as people buying out a block of flats, changing the furniture and short term renting in the middle of a city.
You should be so proud! It sounds like you have good judgment on what you should do and how you should do it, and it seems like you’ll have support with you along the way. Your transparency is commendable as well, something you don’t have to do but I’m sure it serves people who are interested in doing the same thing. Thanks for also sharing your favorite musicals 😅 merry Christmas to you too!
It is relatable and wholesome. What’s wrong with it? You bought and saved an abandoned building, worked with your family and created a small business. It’s awesome. You’re awesome! Happy New Year, Patchy. Keep the relatable and wholesome content coming please.
Thanks for your time! As hyped as i am about getting more good content out! Don’t forget to like the video🤍🤍sᴇɴᴅ🤍🤍ᴍᴇ🤍🤍ᴀ🤍🤍ᴅɪʀᴇᴄᴛ🤍🤍ᴛᴇxᴛ🤍±𝟷𝟸𝟶𝟾𝟾𝟽𝟻𝟸𝟼𝟽𝟼
Be sure you know if the solar panels would be facing the best direction for optimal efficiency. Also take into account that solar panels need to be periodically washed, so DIY or paying someone. And finally, I'd hate to see the panels damaged when you're doing your Caber Tossing.
I'm fairly sure the front faces SE so that would be OK, no? It's not too high and I have ladders so I'm sure I could wash them myself. The caber tossing is definitely still a concern though.
We have a solar gate here in California. It stops working for a couple of weeks every winter when we have more than a couple of rainy/overcast days in a row. Depending on Solar Heating when you have so much less sun than we do seems like it might not work so well...
Fragrance the house with a candle, then sell those candles from the house with an honesty cash box... Label everything good in the house with a QR code (from the bed to the, furniture to the oven, rugs , towels, hand soaps etc etc ) so if people want anything you've got there, they can have an affiliate link to buy it. For every stay that doesn't have a booking the day after, call the occupants and offer them an extra day for £45. I could probably think of more stuff, but this is already a long comment
I wonder how much electricity solar panels would generate in the winter in Scotland - not a very sunny time? I think over time happy customers will generate more business for you and you will be able to rent without going through AirB&B so your profit will go up a bit.
The interest only mortgage is really cutting you short. Start moving to a fixed rate and start paying off the mortgage sum. That way you can actually start building capital and having the Airbnb cover you mortgage pay off.
Loved the series so far, the idea of continuing with Airbnb sounds like the best option, it’s paying off the mortgage, and supporting your family and as long as it is making money then what is the real downside
I love your home, George, and I love how you resurrected it from a "deserted" space into a real home. You did your community a service, I think, by doing that. Thanks for explaining the ethical concerns you have, as I didn't understand what they could be. Your home is large enough for one or two people only (with maybe a nice pet 😃), but not a family with children. So I don't believe you are buying up family-with-kids-friendly real estate. Also, by renting your home, you are bringing visitors to the area, and hopefully they are helping to support local merchants. Perhaps getting their take on it would be useful. Thanks for another great video.
Happy Holidays George! Good to see you looking so well. Love all your videos and cat ❤
Happy Christmas and all the best in the New Year! From Canada. 🎉🎉🎉🎉🎉
keep it and rent it out. The tenant pays the taxes; you can get a cheaper repayment mortgage and the tenant will cover the mortgage; pays the electric bills and you keep the house which grows in value over the years.
I suppose that's an option too!
Hi George.....I hope you and your family have a wonderful Christmas and a very happy birthday to you. Looking forward to my second year of enjoying your videos and final renovation reveal!
Keep the property and keep renting. I enjoy watching your business grow.
🎄 Merry Christmas, George and everyone! 🎄
Stick with it george, it's not a family home taken out of circulation. It's a small place for people to stay, it brings people to your area, others benefit from your endeavour and yes , there will be an emotional tie, don't let that go, it's worth more than you know.
Love to have a cup of tea with this guy. He's got a high level of chill
“Turn it into a grow factory “ 😂. George your subtle humour you slip in conversationally has me in hysterics.
If it’s yours, do what you want! If you want to rent it out that’s up to you!
You put in the hard work before the squatters moved in! Keep going with it, it’s obvious. 👍🏼
Keep an eye on new mortgage deals as sometimes it’s possible to get a lower interest rate, and a repayment mortgage too! Good luck. Merry Christmas 🎄
Profitable in your first year is pretty good man :) solar panels are a big expense but might be a good shout - a wee log burner would be a nice touch but not sure if that would affect your insurance costs. Not sure if you would consider a long term let? Would save your mum and brother admin/cleaning time. Ethically, your house is not a family home, it's very unique, so renting is fine by me.
I'll need to look at the log burner idea! It'd definitely add to the cosy vibe I want ha. Long term let/selling are the two options I'm considering if it doesn't seem viable after this next year I reckon.
Love your vids man. Keep it going 💪🏾👍🏾.
Appreciate it!
Your point about not buying an inexpensive house near a school and turning it into an AirBNB makes sense to me. On the other hand, I imagine that there are a lot of people like me, who usually prefer to rent something in/near a city, rather than a shepherd's hut, just for being close to stores.
I also think that the solar panel idea is a good one, especially if you have a spot for battery storage. We have solar panels, and they have reduced our electricity bills by a lot. If your brother and mum are happy helping you run it, I think it could bring in more income as more people learn about it.
Aw I'm sort of the opposite. I'd be more inclined to stock up on food and then stay at the hut!