do park homes lose money?

Deals_2

any ideas on thoughts or experiences. what about rules and regulations. i saw in one that you cannot run a business but how would they know for example? is it only for old people? what sort of loan rate woudl you get for one? thanks in advance.

EliteHeat

They lose ££££££££££££££££££££££s

They are not comparable to houses, they are more like gliders with a limited hull life. Plus, they are almost as likely to take off in a stiff breeze

poppysarah

Some parks shut for 2 months of the year.
They're not the most insulated places on the planet and so will be a bit cold in winter.
They will devalue quicker than cars I imagine.
Some parks ban models over a certain age.

Jowo_2

If you are referring to residential parks, some will only permit people above a certain age to live there, some ban children, some ban pets.

I'm not surprised if some ban residents from operating a business there as I assume they wish to deter the possibility of people parking lots of vehicles or storing goods there and turning it into something indistinguishable from a travellers site.

I can't really see how a mobile home, a temporary structure, can appreciate and any buyer has to be aware of site fees on top and some restrictions on the type of age of the building. For starters, i can't see how there would be strong demand when they are up for sale, versus a permanent residential property, for example. Could be wrong.

The Shelter website has a good section on the pros and cons of residential mobile home living.

LandyAndy

I don't think the OP means static caravans but rather the Cabin type of park home. These change hands for well in excess of £100k around here.

http://www.rightmove.co.uk/property-for-sale/property-7143878.html?locationIdentifier=OUTCODE%5E2442&insId=2&maxPrice=150000&pageNumber=1&fromSummary=true&backToListURL=%2Fproperty-for-sale%2Ffind.html%3FsearchType%3DSALE%26locationIdentifier%3DOUTCODE%255E2442%26insId%3D2%26radius%3D0.0%26displayPropertyType%3D%26minBedrooms%3D%26maxBedrooms%3D%26minPrice%3D%26maxPrice%3D150000%26retirement%3D%26partBuyPartRent%3D%26maxDaysSinceAdded%3D%26_includeSSTC%3Don%26sortByPriceDescending%3D%26primaryDisplayPropertyType%3D%26secondaryDisplayPropertyType%3D%26oldDisplayPropertyType%3D%26oldPrimaryDisplayPropertyType%3D%26oldSecondaryDisplayPropertyType%3D%26newHome%3D%26auction%3Dfalse%26x%3D97%26y%3D20


http://www.rightmove.co.uk/property-for-sale/new-homes/property-21529916.html?locationIdentifier=OUTCODE%5E2442&insId=2&maxPrice=150000&pageNumber=3&fromSummary=true&backToListURL=%2Fproperty-for-sale%2Ffind.html%3FlocationIdentifier%3DOUTCODE%255E2442%26insId%3D2%26maxPrice%3D150000%26index%3D20

Optimist

Be very careful if your thinking of a Park Home. Most sites are well run but you only need one rogue owner and you will have no end of problems.

You also need to be aware that if you sell then 10% of the selling price goes to the to the park owner

Deals_2

was referring too. thanks everso . was not aware of a few issues. good to know you have to pay percentage too to the park owner.

LandyAndy wrote: »

I don't think the OP means static caravans but rather the Cabin type of park home. These change hands for well in excess of £100k around here.

http://www.rightmove.co.uk/property-for-sale/property-7143878.html?locationIdentifier=OUTCODE%5E2442&insId=2&maxPrice=150000&pageNumber=1&fromSummary=true&backToListURL=%2Fproperty-for-sale%2Ffind.html%3FsearchType%3DSALE%26locationIdentifier%3DOUTCODE%255E2442%26insId%3D2%26radius%3D0.0%26displayPropertyType%3D%26minBedrooms%3D%26maxBedrooms%3D%26minPrice%3D%26maxPrice%3D150000%26retirement%3D%26partBuyPartRent%3D%26maxDaysSinceAdded%3D%26_includeSSTC%3Don%26sortByPriceDescending%3D%26primaryDisplayPropertyType%3D%26secondaryDisplayPropertyType%3D%26oldDisplayPropertyType%3D%26oldPrimaryDisplayPropertyType%3D%26oldSecondaryDisplayPropertyType%3D%26newHome%3D%26auction%3Dfalse%26x%3D97%26y%3D20


http://www.rightmove.co.uk/property-for-sale/new-homes/property-21529916.html?locationIdentifier=OUTCODE%5E2442&insId=2&maxPrice=150000&pageNumber=3&fromSummary=true&backToListURL=%2Fproperty-for-sale%2Ffind.html%3FlocationIdentifier%3DOUTCODE%255E2442%26insId%3D2%26maxPrice%3D150000%26index%3D20

trumpton

I can see some of the appeal, but realistically they are atractive to only a small minority, ie older people looking for one-level, secure living. They are therefore likely to be harder to sell on. I would buy a more conventional property if possible.

SouthCoast

Where I live folks can't sell their park homes as the potential buyers are unable to raise the finance.

LandyAndy

SouthCoast wrote: »

Where I live folks can't sell their park homes as the potential buyers are unable to raise the finance.

That has to be a problem. I can't see anyone giving you a 'normal' mortgage on such a property. You'd have to raise a personal loan or remortgage a 'proper' property (if you were planning it as a second home).

HH62

Interesting discussion, and I can only add my own personal knowledge from my experience locally.

Where I live, you have to be 55 years old to buy one.

There are two sites quite close to me. Both are open all year round as residential park home sites. However, as another poster pointed out, a lot of these places shut down (usually January/February) for two months each year. One site seems well run, it's always kept looking immaculate and the people I've talked to who live on it are happy with the management company. Not the case for the other site though, and I guess management companies can change at any time.

In my area, of the two sites, on one of them when a home comes onto the market it usually sells in less than 3 months. There's definitely a demand for homes on that site. However on the other site I've seen some homes stuck on the market for a long time - 12 months and beyond.

This is something I'm considering when I'm old enough (not that far off actually!). I have no children to leave my house to and selling my own house (which is paid for)to buy a 2 bed park home will leave me with a large amount in the bank which will supplement my pension.

As others have said there are lots of pros and cons to buying these properties. You have to take into account maintenance charges that may increase out of proportion with inflation etc.