Borrow or buy info needed for holiday chalet

greenface

Hi to all hope this is the right place for this if not feel free to move me.

I am thinking of buying a log cabin type of chalet on a decent holiday park i know well. I would rent this out to people to help me with the ground rent(less than 2k). I would make enough money to pay the rent and a little bit more i would use this myself in a few years as a family holiday base too.
The price is less than 25k to buy i have the money to pay cash. My question is would you pay cash or say pay half and borrow half as a loan ? what could i claim back in interest or taxes from a loan . I dont think a mortgage is a option although chalets are sold with 1000 year lease
comment or similar situations please.

poppysarah

They always advise not buying these things as an investment. If you have the cash and it's getting no interest then spend it - IF you can afford to burn 25k.
Read carefully all the site terms.

greenface

poppysarah wrote: »

They always advise not buying these things as an investment. If you have the cash and it's getting no interest then spend it - IF you can afford to burn 25k.
Read carefully all the site terms.

thanks when you say "they" ??

poppysarah

They = the sane people.
Actually I've read it in a park brochure - as well as it being common sense. A non-standard building whether lodge or caravan isn't the same sort of ... well "bricks and mortar" as a proper house.
You may get a lot less back from it, fees can go up, there may be additional other costs you've not yet noticed, and you might find the cost of running it more than you think.
If you want to go and spend loads of time at a park and you've got the cash - then buy one.
I'd recommend you've tried and tested the place first though before committing.

greenface

Thanks again for the imput some good comments. I already own a static on the site and use it approx 100 days +pa and had it for over 2 years. My thoughts are the static has a short lease(10 years and then about another 4 at owners discression)We have friends and family stay with us but we dont hire it out but could do often to many people friends and family and work mates familys without a problem for the going rate or just under.
Current ground rate £1600 and £550ish council tax, insurance £170ish, maintenence and repairs (by me ) not too much i hope but prepared for it if happens other bills £300ish. People(friends) on site who rent out are breaking even and often using and refusing rentals. I would be happy to break even if loaning and repaying say half the money about 10k/12k or if buying cash i would like to see a little profit, but buying now i will have somewhere to move into when my static lease is up and need to buy another static which are selling now for between 25 and 35 grand so shudder to think what prices are in 10 more years (may still buy another static and keep the chalet as a rental who knows) My question is should i use my own money to buy or borrow and repay over say 10 years at the best rate i can find.

poppysarah

You need to find out who'll lend you the money and how much deposit they want. You might find yourself constrained by the lendor rather than your own desires.
It's better to leep some savings in case of emergencies anyway.