Few Months In A Van?

Glaceau

I'll try keep this simple

Late 20s no responsibilities

Own house outright

Have a passive income of £1000pcm 

Part time Job about £600pcm

Living expenses ~£600pcm 

I want to maximize my income, minimize spending & invest aggressively

I was thinking about selling my house, buying a rental property that'll yield another £600pcm and [to massively reduce my living expenses] buy and live in a van. 

Buy the van £5k, empty it, put some cheap lino in it - insulate it, put a bed, some kind of storage and a loo? Whatever vanlife people currently use. 

Economics of it would be 

- able to get a rental which will generate +£600pcm

- eliminate bills, i.e. gas, electric, council tax, internet, water, maintainence (probably £400pcm] 

- incur additional costs, i.e. petrol, extra insurance cost, higher food cost? Some costs offset by selling car and not having car insurance etc

I still think, I'll effectively be £800-900+ pcm better off just for living in a van 

So instead of being able to save ~£1000pcm I may be able to save £1800-£1900pcm 

I figure, it'd suck, but I'm young and why not? It's just somewhere to sleep. I'd lose my ability to cook properly, I'm sure I could dine with different family members or make do. All I do in my current property is sit in one bedroom... 

After 6-9 months, maybe I can save enough for a deposit on another home 

I told my family members some of my plans and they said I was crazy, I think it kinda makes sense?

pjcox2005

No van life experience but it doesn't seem that crazy. 

No commitments then it could potentially be very beneficial for a period of time and an adventure. I imagine it would change ways of living for example and perhaps be more outdoors/social events etc. The other one is would you be inclined to travel at some point if you can't do the part-time job from anywhere.

I guess, when you factor in costs of selling up, getting and subsequently rebuying furniture etc then you'd need to be in there for 12 months at least to see real benefit. It's also I guess not great timing to start living in a van in winter.

Would a half way house be buying a property which could accommodate 2 or 3 lodgers and get the income and savings from that or does finances not allow it. 

Jami74

The people I know who have opted for van life have been passionate about it. It seems like a lot of work and a bit risky for something that you think would suck.

Could you share your house with a lodger?

enthusiasticsaver

Where are you going to park the van to live? You cant just park it anywhere.   
Having no fixed address will seriously affect your ability to get a mortgage on another property or any sort of financial product.
Could get very cold through the winter.
About half your annual rental income would be used up buying the van and kitting it out.
What if you get dodgy tenants who do not pay regularly or trash your property? Have you factored in paying tax on the rental income

 I would not do it especially as you do not really need to but if you have thought about all the above and still think it is a good idea then your call. 

joedenise

I really don't think you've thought this through!  Have you checked out the cost of insurance to live in a van?  Full time insurance is in the region of £2000 a year and there is only one company who actually provides TRUE full time insurance.

Where will you park up overnight?  Where will you empty your loo?  How long do you think your friends and family will put up with you poncing meals off them?

As you already have a house that you own why sell it and buy something to rent out?  Why not just rent out your current house?

Winter is definitely not the best time of year to be doing this anyway.  Vans can be very cold!  We have a proper motorhome and that is fully winterised but I wouldn't want to live in it for the whole winter as it can get very cold.

Glaceau

RE Above comments

Lodgers would be ideal financially but I don't like sharing living space, I much prefer to reside alone... 

When I said it'd probably suck, I'm just trying to be realistic about how the living experience would actually be Vs being overly optimistic and underestimating the issues. But I understand that most people who do this, do it with a passion for the travel side of it.

& Yes I have considered the possibility of a bad tenant, taxes, maintenance etc

warby68

I'd go for lodgers instead and keep your basic home comforts, assuming you have the rooms.

2 lodgers at £450 pm gives you the projected extra savings with a lot less hassle. 

Glaceau

Re no address

I believe I could put myself as living my with family? I'd have to look into the implications of that. Thanks.

joedenise

Glaceau said:

Re no address

I believe I could put myself as living my with family? I'd have to look into the implications of that. Thanks.

You could but if the insurance company found out you could be done for fraud because it wouldn't be true.  Not sure what the implications would be for your family either. 

Graham1982

Hello @Glaceau

I think it is an amazing idea in principle and I would do this if I was in your position again,  in principle. I am not advocating you breaking the law etc but some can and do opt to "stealth camp" i.e. to park on the road and discretely camp. Again this is illegal but some people do do it. That being said, where I used to live (quite a rural location) there were several farm shops and farms that were happy to allow people to rent a space to pitch a caravan or a motorhome for something like 20 quid.

Have you considered buying an old static caravan or a touring caravan instead?

Also, as a dampener to all this enthusiasm, I have slept in a van in November time in Birmingham for one night with a friend as we cheaped out and didn't want to get a hotel before setting up a stall at a motoring sale weekend. Needless to say, it was the coldest, most miserable night of my life - waking up cold and feeling dirty and dishevelled because you can't bathe properly etc gets boring very quickly.

Also have you thought about working abroad? I am a teacher so perhaps easier for me than some but Middle East, tax free income, free accommodation and not having to live in a van.

Another idea, buy shed put on parents' property live in that?

Guardianship of properties - you pay a small rent but there is an element of communal living here.

Cheers

TheAble

You'd be much better off channeling your energies into getting a full time job paying a multiple of your current £600/month, with potential for higher earnings over time.

You may feel young now but chances are you might want a proper career not too far down the road and you may have a tough time of it trying to break into that once you're in your thirties.