Motor home as investment?

Raine1

Hi
Any thoughts on this? I am swinging between 1) thinking this looks like a good return on investment plus we get 3 weeks motor home use per year or 2) there must be a catch / might be more hassle than it is worth. I would be interested to hear any opinions. Has anyone here done this? I can't post a link as I am new here but the offer is on

Unbeatable hire dot com forward slash invest

Thanks

Raine1

I should add that we really like the idea of having a motorhome but can't justify the expense of buying one for it to sit on the drive a fair amount of the time - we both work full time. We have thought about buying one and renting it out - but not sure we can be bothered with the hassle.
This looks like it could potentially be a better deal? Not sure though.....

dunstonh

The asset is one that constantly loses value until ultimately, there is little or no value left. So, your capital value will decline.

So, your "value" is in the income. However, out of that income you will have to cover refurbs and repairs, insurance, agent costs, tax etc. There is also a risk of total write off and a delay for insurance settlement.

This looks like it could potentially be a better deal?

What do the figures say?

Glen_Clark

Looks like a wonderful business idea. Motorhomes are probably the most complex consumer durable there is, and easily damaged by people who don't care or know what they are doing - but thats someone else's problem All I need is a phone and PC and a few mugs to buy the motorhomes, put up all the capital, do all the work and take all the risk
How are you at dealing with angry families in your home, waiting for a motorhome you promised them to go on holiday but the last hirer has brought back late / damaged, etc

Glen_Clark

dunstonh wrote: »

insurance settlement.



What do the figures say?

If you want to insure a motorhome for hire and reward I think you are in for a shock :eek:

colsten

OP, put your money into an S&S ISA, select the funds that suit you and pay for the 3-week annual motorhome hire from the ISA dividend income.

Probably not the answer you had hoped to get.

dunstonh

Glen_Clark wrote: »

If you want to insure a motorhome for hire and reward I think you are in for a shock :eek:

I was taking the approach of leading the horse to water rather than come out and state the obvious (obvious to most investors that is).

atush

I think the ides is daft, and you should invest in pension or S&S isa.

If you want a motor home, rent one or buy one for your use once retired.

Spirit_2

Have you seen the state of a hired motorhome after it has been to Glastonbury?
We were parked amongst hired motorhomes when we were at Glasto in our Vw splittie. :eek:

Cornucopia

Here's the page the OP could not link to...

http://unbeatablehire.com/invest

Unfortunately, there isn't enough info on the page to really get into the figures, but the overall message seems positive to me.

They are talking about a fixed income (which would be the most important thing for me, given that the vehicle would be a depreciating asset). It costs a fortune to hire a motorhome, so I don't see why, in theory, it shouldn't be a reasonable investment.

Their quoted figures suggest a 10% income each year, but perhaps they are factoring in a predicted future value/rental dividend for the vehicle in order to get to their claimed "30% overall return".

As a comparison, there is a Car Investment Company that gives a fixed return of 11% per vehicle.

colsten

Cornucopia wrote: »

They are talking about a fixed income (which would be the most important thing for me, given that the vehicle would be a depreciating asset).

anybody can talk about fixed income. doesn't meant there will be any income.

Cornucopia wrote: »

It costs a fortune to hire a motorhome, so I don't see why, in theory, it shouldn't be a reasonable investment.

eh? Why is something that costs a fortune [to those that would pay your income] a reasonable investment?