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Before Owning A Caravan Discussion and advice on all aspects involved in deciding if a static caravan is right for you.

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  #1  
Old 03-08-2017, 13:22
Jayb Jayb is offline
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Smile Renting caravans v buy to let.

Hello, I am looking for a bit of advice regarding caravan ownership /renting.
I've been in the buy to let game for the past 10 years but have now decided to posssibly sell up and cash in.
Whilst renting out property , it has given me a second income as well as me still having a normal 9_5 Job.
What I realy want to know is if I invested 120,000 into buying lets say 5 or 6 caravans outright, what kind of income could I expect.
Obviously I would lose capital growth as you would have in bricks and mortar.
I realise caravans do depreciate over time which isn't an issue if a good yearly profit is possible.

Looking through the internet, all I seem to read is bad things regarding making money from it. I find this strange as there are so many people doing it.

Any advice would be greatly appreciated.

Jamie
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Old 03-08-2017, 13:52
fhb fhb is offline
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I have no experience of holiday statics, or of buy-to-let, but I imagine any income would vary dramatically depending on how desirable the (a) location, (b) park, and (c) caravan is. Desirable caravans on desirable Parks in desirable locations tend to cost more to buy.
Unless you own your own land, you will probably not have any control over the site costs, so you will have to factor in unknown yearly increases. There are aso the other unknowns such as whether the rules will change so you can no longer keep the van on site or rent it out.
No idea how many people who are NOT landowners actually operate buy-to-let holiday caravans, but I personally think that it would be more of a money pit than a useful income.
I have assumed that you are thinking of holiday caravans; if you are thinking of residential, then you need to have your own Park as legislation dictates that residential homes are owner-occupied, you may not sublet -the only party who is allowed to rent them out is the Park Owner.
I wonder if you have you been reading the glossy adverts of a certain lodge company by any chance?....
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Old 03-08-2017, 15:06
littlefb littlefb is offline
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Do not rely on the park/site to manage leases for you, most owners who do this do not make enough to pay their annual fees, to make a profit you must be prepared to manage them yourself, take very short term lets as well as long term. To self manage you will not want to travel too far to wherever they are sited,
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Old 03-08-2017, 16:44
treetopper treetopper is offline
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Think your 9-5 job will be advertising etc.of vans and then cleaning ,repairing, dealing with renters etc.etc.,
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Old 03-08-2017, 17:46
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cheshirecat cheshirecat is offline
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Not only would you lose capital growth...you will lose your capital full stop

Real terms a 5 year old will be worth pin money

Rental high season is probably 8-10 weeks,thats 8-10 tenants compared to just max 2 per year on a BTL house

And then there is 2500 min to the site every year

I have BTL properties and i wouldnt touch a static with YOUR barge pole from an investment standpoint

How to get a small fortune????
Start with a large fortune,buy a static...and sell after 12 months

Hey presto
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Old 03-08-2017, 21:53
FlixtonFlyer FlixtonFlyer is offline
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Statics- Investment,you must have money to burn.The only people who make any money out of caravan ownership are the Site holders,that's where your money should be going.
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Old 04-08-2017, 03:34
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Traction Traction is offline
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In my opinion you will be better off with a BTL rather than caravans to let.
If you are looking at paying 20k each for them you would be buying basic vans which would give you a lower return to start with. You would also have to do a lot of homework with regards to where you would have them sited - the large parks that have all the amenities would give you a higher rental potential, however, they also have higher site fees - 5k - 6k is not unheard of, smaller sites which have cheaper site fees usually don't allow you to hire out. You also have rates to pay, gas, electricity, drain downs, cleaning, the replacement of things being broken or taken. Those are all on-going costs. The depreciation is very large, if you decided after 12 months it wasn't working then you would be lucky to sell for 50% of what you paid for it. Most people that rent vans out do so to help cover the costs, not to make a profit.
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Old 04-08-2017, 08:13
Mosquito Mosquito is offline
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I think it's a fairly comprehensive NO. I'm sorry that the comments may be not what you wanted to hear but unless you have a failsafe plan for making money it should be a no.

However, if you want a little home from home, where you can go and relax, a caravan or lodge is an ideal purchase. It is an investment in your lifestyle but not a good financial investment. There are lots of stories on the forum of people who have sold after a period of time and have lost a shedful of cash.
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Old 04-08-2017, 14:22
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Maddy Maddy is offline
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If I wanted cash it would be houses let as bedrooms not statics
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Old 05-08-2017, 22:19
RRRob RRRob is offline
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Quote:
Originally Posted by Jayb View Post

Looking through the internet, all I seem to read is bad things regarding making money from it. I find this strange as there are so many people doing it.

Any advice would be greatly appreciated.

Jamie
Best advice as others have said.... FORGET IT! You are right that there are lots of people renting out their caravans, but most of them are doing it to recoup some of the costs of ground rent. The bigger, popular sites charge more in ground rent than you would be likely to make. A member of my family has a van on a Haven site. very popular & you would be able to rent out, but mostly only in the main summer months. Haven charge between 5 & 6 thousand pounds a year for an average pitch. More for the more exclusive pitches. Take the cost of depreciation of your van or vans into account & its a great way to lose money. Wear & tear on hire vans is much greater than owner only vans. This is reflected in price when you come to sell. Peanuts is what you would get. If it was such a money spinner, dont you think that haven & other sites would want to keep all their pitches for themselves to rent out? You only have to look at how hard they work to sell their vans to see where all the profit is & it certainly is not in private owners subletting their vans.
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