Dream Lodge Group

Zanderman

dlk wrote: »

I really can't comment on how secure an investment it is. I did look into to it a year or so ago and considered it but decided against it in the end as like others have said the capital value of the lodges does seem very high and of course after the initial 3 yrs there are no guarantees as to what return you are likely to receive.
I've been to the Norfolk Park dream lodge 3 times on a holiday basis and have to say the quality of the site and the lodges have been beautiful and we've actually booked to return a 4th time next summer.
I was surprised to see on the linked article someone only getting 75k resale from their 200k lodge, yes 200k seems overpriced but 75k seems very low! For what it's worth, if someone has a lodge they want to sell and the dreamlodgegroup only offers 75k then contact me and I'll top their offer!

Really? As an investment!?!
Or just to use yourself?
If just for yourself bear in mind ongoing site fees - which will be £4k or so a year in basic fees (which would pay for several weeks rental probably) plus, inevitably, practical maintenance and refurbishment of the lodge itself as it ages. Which could be significant if you want to let it commercially.

dlk

Zanderman wrote: »

Really? As an investment!?!
Or just to use yourself?
If just for yourself bear in mind ongoing site fees - which will be £4k or so a year in basic fees (which would pay for several weeks rental probably) plus, inevitably, practical maintenance and refurbishment of the lodge itself as it ages. Which could be significant if you want to let it commercially.

A little bit of both. As a pure investment at £85k I don't think it would be bad value at all. When I take into account that my one week holiday there per year that I've taken for the last 3 years is over £1k each time then I'd happily pay £85k and visit 3 or 4 times a year and rent it for holiday lets when not in use.

Zanderman

dlk wrote: »

A little bit of both. As a pure investment at £85k I don't think it would be bad value at all. When I take into account that my one week holiday there per year that I've taken for the last 3 years is over £1k each time then I'd happily pay £85k and visit 3 or 4 times a year and rent it for holiday lets when not in use.

The basic site fees of £4k per annum (their website says 3.5 to 4.5) are the equivalent of visiting a rented lodge 3 or 4 times a year without spending £85k up front on buying your own. Plus there will be other costs just to keep it in good nick, and desirable as a rental.

So the investment only works if your rental income significantly outweighs the running costs AND you get your capital back as and when you sell.

As the structure is, whatever they say, only a temporary structure, it will depreciate. So you are unlikely to get that capital back.

Doesn't look like a good investment to me, but each to their own, I can see the basic appeal of the concept.

Reaper

I'm surprised this thread is still going as I think everything that can be said about it has been.

But maybe worth reviving a link to people who have bought and are unhappy:
https://www.facebook.com/The-Dream-Lodge-Protest-Group-840103709384704/

dlk

Reaper wrote: »

I'm surprised this thread is still going as I think everything that can be said about it has been.

But maybe worth reviving a link to people who have bought and are unhappy:
https://www.facebook.com/The-Dream-Lodge-Protest-Group-840103709384704/

To be fair it appears that the group on that link is literally one person and a disgruntled customer. I doubt there's a company in existence that doesn't have damning Facebook groups condemning them. I completely agree with anyone who says 200k is WAY too expensive but purely from my experience as a rental visiter there my experiences have been nothing but excellent. The site is immaculately maintained (though who knows if that will continue when all lodges are sold out - which was one of my concerns when I decided not to buy one ) and the customer experience I've had has been excellent too.

Zanderman

dlk wrote: »

To be fair it appears that the group on that link is literally one person and a disgruntled customer. I doubt there's a company in existence that doesn't have damning Facebook groups condemning them. I completely agree with anyone who says 200k is WAY too expensive but purely from my experience as a rental visiter there my experiences have been nothing but excellent. The site is immaculately maintained (though who knows if that will continue when all lodges are sold out - which was one of my concerns when I decided not to buy one ) and the customer experience I've had has been excellent too.

Agree entirely that that facebook page is clearly not entirely relevant.

But, speaking from experience as a long-time (no longer) static caravan owner, the management of these sites (no direct experience of Dream Lodge) is very challenging, financially, if you're a caravan or lodge owner. The site's owners are there to make money for themselves, not for you, so you need to be very wary.

Any experience you have as a renter is, arguably, completely irrelevant to considerations of buying. Of course it looks good and is impressive if you're renting. It's supposed to.

The site owners make their money through charging high fees for the units (and trying to micro-manage any after-sales onwards to new people), ongoing obligatory site fees/ground rents for the plots and their cut of the rentals. You can only know what that is like if you buy - and you may find it is a very different experience to renting.

They don't need to impress you anymore once you've bought a unit - you're stuck with it and are obliged to pay them fees every year and, if you rent out, you're also obliged to keep the place spick and span. You have to shell out cash and you have to make the effort. You may make some rental income, but you may have to sell at a loss if you don't want to carry on.

But if you just rent someone else's unit once a year they need to keep you coming back, and saying nice things about them.So they'll go out of their way to appear 'excellent'. That's their job.

And finally (last minute edit) these sites can be (and often are) sold on.... to another company entirely. So even if the existing management outfit are 'excellent' (which I seriously doubt) you may find, just a year or so after buying, that you have new landlords, who have simply bought the site as an investment. No interest in customer care or retention, just interested in squeezing more units on and selling those at a high price. And there's nothing you can do about it, apart from to sell - probably at a loss.

dlk

Yes, you are probably right Zanderman which is why I wouldn't touch it with 200k. My thinking is largely based around the idea that spending two or three weeks there over the summer (my wife is a teacher so can only holiday during the most expensive season) would almost justify half the entire years management fees. I wouldn't therefore have to be all that successful to at least cover costs so it kind of reduces the risk a little compared to those who see it as a pure investment (which it clearly isn't a great one). I did speak with a couple of people who had bought there and they were really positive about it but they were living there as retired so it really wasn't an investment for them I suppose.

dunstonh

No

1 - You would be on a shared site with park owned units and privately owned units. Whose units do you think they will fill up first?

2 - Holiday let (of any type) suffer high maintenance. Holidaymakers take less care of other peoples items. So, maintenance and refurb costs are going to be higher.

3 - Weekly/fortnightly cleaning required. This can be quite intensive cleaning after 2 weeks partying by a group or young adults or a family of 6 children. You have to put this in place after the existing let has finished but before the next one arrives.

4 - Wood rots. You can slow it down with ongoing maintenance but ultimately, the asset is going to end up with nil value. It may take 20 years but your return has to be high enough to be able to write off the initial capital investment. So, the net income is not just about beating income yields on conventional investments. It is about covering the capital loss.

5 - What happens if the park owners fail. You are left with a unit on a site that is not trading.

I know a few people that have one. One does not rent it out at all and uses it themselves. It is local and they go there every weekend. The other is much the same but has occasionally let it out but is reluctant as it is kitted out for their use and every time they let it out, something gets damaged or broken.

Johnny_Doe

No

"Join date 27-09-2016"
"Posts 1" on 27-09-2016

Really?

Mylo123 wrote: »

Hello,

We are thinking of investing... How do you find them

Reaper

Johnny_Doe wrote: »

"Join date 27-09-2016"
"Posts 1" on 27-09-2016

Really?

It's not that unusual. A lot of people lurk on the forums and only join when they want to ask something.