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  • FIRST POST
    • dalo
    • By dalo 18th Aug 17, 10:14 AM
    • 162Posts
    • 31Thanks
    dalo
    Buying a static caravan as an investment?
    • #1
    • 18th Aug 17, 10:14 AM
    Buying a static caravan as an investment? 18th Aug 17 at 10:14 AM
    Hi, I wondered if anyone had ever done this, say bought a caravan at a top site like a Haven.
    I know the fees are about £6k per year and the caravans are about £25k and need replacing every few years or so but could you make money on the rental of them? I've always fancied one but not sure if you can make money on them.

    Thanks.
Page 1
    • droopsnoot
    • By droopsnoot 18th Aug 17, 11:24 AM
    • 1,096 Posts
    • 701 Thanks
    droopsnoot
    • #2
    • 18th Aug 17, 11:24 AM
    • #2
    • 18th Aug 17, 11:24 AM
    I haven't done it myself, but I do know someone who had two vans on a popular site in North Wales. Ended up after a few years they sold the vans (presumably for age) but ended up handling cleaning / handover work at the site for other owners because it made them more money.


    I think you've identified the issues - you pay quite a significant amount in site rental, have to replace quite often, don't get very much for the old van. You can do a worked example, get the site rental figure and replacement age from a reasonable site, look at the potential cost and sale value of the van, then figure out how much you need to make just to break even.


    If it's something you wanted to do anyway, and you will get a decent amount of use out of the van, then factor that into the calculations. On the one hand, if you want a van anyway, you can tune out a lot of the costs because they're there to start with, you haven't incurred them just to get a van to rent out. On the other, you won't make much by only renting it out when you aren't using it, unless you particularly want to use it when no-one else goes on holiday, and/or can change your plans at the last moment if you get a short-notice request.
    Last edited by droopsnoot; 18-08-2017 at 11:26 AM.
    • scaredofdebt
    • By scaredofdebt 18th Aug 17, 1:26 PM
    • 932 Posts
    • 368 Thanks
    scaredofdebt
    • #3
    • 18th Aug 17, 1:26 PM
    • #3
    • 18th Aug 17, 1:26 PM
    As stated, do the calculations and see.

    You can work out most of the figures quite easily, what is the going rate (at various times of the year) for the caravan (this will vary by site and size etc but you can find out easily enough) and then the only tricky bit is working out the occupancy rate, ie how often will you be able to rent it out.

    So during summer you can probably expect to get it hire out most of the time but this will drop off a lot in winter, ie even reducing the price will mean it will be empty most of the time from Oct-March etc.

    If you can find a website that allows online bookings you can probably do some dummy booking to see if places are fully booked up though, but this won't be very accurate if you do it too far in advance.
    • Annie35
    • By Annie35 18th Aug 17, 2:06 PM
    • 117 Posts
    • 78 Thanks
    Annie35
    • #4
    • 18th Aug 17, 2:06 PM
    • #4
    • 18th Aug 17, 2:06 PM
    the caravan sales team should be able to give you lots of info on costs & potential of the site.

    there are tax & capital gains relief & depreciation on furnished holiday homes, which is likely to be where its worthwhile or not. There are a few rules but basically it needs to be available for at least 210 days & letted out for 105 days, not including days your there yourself.

    https://www.gov.uk/government/publications/furnished-holiday-lettings-hs253-self-assessment-helpsheet/hs253-furnished-holiday-lettings-2015

    i know someone who ran a few vans almost as a lifestyle job, they travelled up once a week to do check in/out/cleaning which gave more money then using the site services too.
    • lincroft1710
    • By lincroft1710 18th Aug 17, 3:29 PM
    • 10,035 Posts
    • 8,094 Thanks
    lincroft1710
    • #5
    • 18th Aug 17, 3:29 PM
    • #5
    • 18th Aug 17, 3:29 PM
    If the van is £25K, site fees £6K and let's say 5 yrs usage before removal (so depreciation say £5K pa for illustration purposes), plus say £1K pa for "additional items", then that's £12K net pa you have to make just to break even.

    If you are buying van with a loan, or on HP then you'll need a higher net amount.

    As a way of helping finance your holiday home, it makes some sort of sense, as a business, there may be more lucrative opportunities.
    • scaredofdebt
    • By scaredofdebt 18th Aug 17, 3:30 PM
    • 932 Posts
    • 368 Thanks
    scaredofdebt
    • #6
    • 18th Aug 17, 3:30 PM
    • #6
    • 18th Aug 17, 3:30 PM
    Just out of interest, how much does it typically cost to get someone to professionally clean these vans for the next client? Ball park figures are fine.

    Be interesting to compare the returns from this versus buy to let as the start-up costs would usually be a lot lower. More work though and probably more risky.
    • elsien
    • By elsien 18th Aug 17, 3:32 PM
    • 15,419 Posts
    • 38,712 Thanks
    elsien
    • #7
    • 18th Aug 17, 3:32 PM
    • #7
    • 18th Aug 17, 3:32 PM
    A colleague had one. He just about broke even in the rentals, with the costs of cleaning etc at every changeover. Once the family stopped using it for their own holidays, he decided it wasn't worth the hassle.
    All shall be well, and all shall be well, and all manner of things shall be well.

    Pedant alert - it's could have, not could of.
    • mariashephard
    • By mariashephard 30th Nov 17, 12:24 PM
    • 1 Posts
    • 0 Thanks
    mariashephard
    • #8
    • 30th Nov 17, 12:24 PM
    • #8
    • 30th Nov 17, 12:24 PM
    Hi rent my caravan out and have managed to cover my ground rent and return an profit
    • lincroft1710
    • By lincroft1710 30th Nov 17, 4:02 PM
    • 10,035 Posts
    • 8,094 Thanks
    lincroft1710
    • #9
    • 30th Nov 17, 4:02 PM
    • #9
    • 30th Nov 17, 4:02 PM
    Hi rent my caravan out and have managed to cover my ground rent and return an profit
    Originally posted by mariashephard
    Does the income obtained from renting out cover the annualised cost of the van as well as the ground rent.
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