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Static Caravan -Has anyone got a Buy to Let one?

First of all I know that a caravan is a depreciating asset, and I don't want the sales talk about family holidays, lifestyle etc.

As all the threads on this forum (and most others) are several years old I want to see if there is anyone out there who has a static caravan on site who primarily lets it, and what the potential ROI is over 10 years.

I have just retired and am looking to invest my lump sum - (I have followed Martin's tips on savings). However with interest rates low I am looking to see if there are better ways of investing.

One area I'm investigating is to purchase a Static Caravan on site, have the site market and let it for me. Any use I will have I see as a bonus - when it isn't booked, so if it is occupied for 52 weeks a year then I will be very happy.

There is obviously a market for caravan holidays on good parks with very loyal followings. One park that interests me is about 2hrs drive from home, well established and features on Hoseasons marketing. The park have provided me with some actual figures for some owners who rent but I have no way of knowing how much they use it themselves and if there was a higher potential occupancy rate.

The figures I have indicate a net income of £3.5K pa. However that may be wiped out with the depreciation on a £35K van. The park is open all year and these figures are based on 31 weeks occupancy - based on a mixture of short breaks and full weeks.

Does anyone have a static caravan that they use in this manner and can you provide me with any idea of the financial benefits you receive?

Comments

  • lincroft1710
    lincroft1710 Posts: 18,357 Forumite
    Part of the Furniture 10,000 Posts Photogenic Name Dropper
    Does the net income reflect cost of van, site fees, advertising/letting commission, income tax, fuel costs, equipping etc?

    £35K for van, income for 10 yrs at £3.5K pa = £35K, At end of 10 yrs van will be worth very little.
    If you are querying your Council Tax band would you please state whether you are in England, Scotland or Wales
  • yes - I was taking all the expenses off to give the net income figure.

    The key to the ROI is the occupancy rate, so it would be good to see what some people actually achieve in terms of occupancy where the van is 100% available for rental.
  • cuddlymarm
    cuddlymarm Posts: 2,017 Forumite
    Part of the Furniture 1,000 Posts
    Hi lookingforcash
    As one that lives in a static I thought I'd give my view if that's ok.
    I live in one near Northampton ( because OH worked at Heathrow and rent was astronomical near the airport)
    Most sites are only open 50 weeks a year ( and lots less) which needs taking into account. Also holiday lettings are usually Easter and then the school hols which means much less than the 52 weeks you are hoping for.
    Please do not let caravan sales people tell you otherwise.
    Quite frankly people who want to rent on a permanent basis will be able to rent small flats just as cheaply.
    Sorry to be so gloomy but once your money has gone it's gone.
    Cuddles

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  • For £35k there are plenty of places you can buy a flat or small house for cash - and even more if you used it as the deposit on a buy-to-let. If you can buy somewhere close enough to you that you can manage it yourself you can save agent's fees.

    You'd probably get about the same income and at the end of 10 years you'd still have a flat or house, possibly you might want to move into it yourself if you downsize and sell your current home.
    A kind word lasts a minute, a skelped erse is sair for a day.
  • Sadly I live in one of the most expensive areas of the country and a 1 bed flat will cost about £150K+. In addition there are conveyancing costs, stamp duty and VAT to be paid on purchasing property, all of which will limit what I can afford.
  • suki1964
    suki1964 Posts: 14,313 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    Sadly I live in one of the most expensive areas of the country and a 1 bed flat will cost about £150K+. In addition there are conveyancing costs, stamp duty and VAT to be paid on purchasing property, all of which will limit what I can afford.


    I used to live in the most expensive area in the country , so we moved


    Where I live now, 3 bedroom terrace will cost around £55k. A flat a lot less.

    You don't have to live on the doorstep of the place you are buying to let
  • suki1964
    suki1964 Posts: 14,313 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    Sadly I live in one of the most expensive areas of the country and a 1 bed flat will cost about £150K+. In addition there are conveyancing costs, stamp duty and VAT to be paid on purchasing property, all of which will limit what I can afford.


    I used to live in the most expensive area in the country , so we moved


    Where I live now, 3 bedroom terrace will cost around £55k. A flat a lot less.

    You don't have to live on the doorstep of the place you are buying to let
  • droopsnoot
    droopsnoot Posts: 1,828 Forumite
    Part of the Furniture 1,000 Posts Name Dropper
    An issue with static caravans is that the site owners tend to insist that they're replaced as soon as they start to get on a bit, and the return you get for a used static that has to be removed from site for that reason isn't going to be all that high as a buyer will know there is a time constraint.


    I cannot claim any direct knowledge of this, I did look at buying one but stuff like the above put me off. A friend used to work with someone who bought two with the intention of renting them out, then found that in the location they chose it was difficult to find someone to do the key handover, cleaning and so on, so ended up driving up there (Potteries to North Wales, so not all that far) for each renter to do that. Then found that there were some others on site who also needed the same services, dropped the day job, moved locally and started doing that for others. I don't think they still have the two caravans any more, I think they get income from providing the service to other owners instead.
  • SailorSam
    SailorSam Posts: 22,754 Forumite
    10,000 Posts Combo Breaker
    My Nan had caravans in Nth Wales when i was only little (so we're going back to the late 50s). Then my Mum took over from her in the 60s. She was glad to get rid of them.
    Of course it was a holiday site not open for the whole year but it was hard to let for enough weeks to cover the costs.
    Liverpool is one of the wonders of Britain,
    What it may grow to in time, I know not what.

    Daniel Defoe: 1725.
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