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Hi I'm sure this is asked a lot

 

We have money sitting in our savings earning nothing and we are thinking of buying a new static caravan in North Cornwall....Bude area, is there money to be made after fee's?

 

Cheers, Steve

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Yes, but not a lot!

It also needs to be run properly as a business, with proper advertising etc. if you are to get a high enough occupancy rate.

Some people do it just to recoup some of the costs without expecting a profit as such.

To make real money requires several vans operated as a business.

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Don't forget you'll need insurance cover for letting.   You'll need to employ someone to be responsible for cleaning and checking the van for damage at the end of the hire period.   Rental will also increase your fuel bills.   Also bear in mind the Inland Revenue will want to know what you're up to.

Citroen C5-X7 Tourer+Avondale Rialto 480/2
https://jondogoescaravanning.com

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1 hour ago, stevepnaish said:

Hi I'm sure this is asked a lot

 

We have money sitting in our savings earning nothing and we are thinking of buying a new static caravan in North Cornwall....Bude area, is there money to be made after fee's?

 

Cheers, Steve

 

Possibly but not a fortune and totally dependant on the whims and rules and small print of the site.

 

Is it a 12 month site or a 9 month site, is it in a good sought after location, can you get an outside engineer to do the yearly checks and maintenance, or can this only be organised by the site, if not used by yourself, how many days per season can it be booked up, no bookings means no income.

 

By all means have a go but do some extensive research to see if your investment will pay off.

 

Horror stories of lost money where statics are concerned appear quite frequently on CT, recent ones where the site owner has sold the site and the new owners want everyone off in X months to develop the site to their own plans.

 

The point where many folk come financially unstuck is when they want to sell it for any reason, to use the funds tied up for something else, or get one somewhere else.

 

It's not unknown for a static to be purchased new for say £45,000 and a couple of years later when wanting to sell up, to find that if it is sold back to the site, they will only offer around £20,000, or if you sell it to be moved off site that the site will want 15% of the sale price plus disconnection costs etc.

 

Common sense isn't a gift, it's a punishment because you have to deal with everyone who doesn't have it.  :rolleyes:

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If you buy a static on a park it has to be for yourself & family first with any money made from letting it out as the icing on the cake. To buy a static on a park purely as extra income a non starter. 
 

A friend did this years ago on a popular park in Sussex but as pointed out they were disappointed with the result. They were thinking income first rather than holidays for themselves which is where they went wrong. 
 

There are plenty of mobile home parks near me on the Essex coast an easy drive from east London where most of the owners come from.  There is a huge park at Point Clear with fees of £4.5kpa & yet it has expanded massively over the years. Just long lines of people’s small paradises. Not my cup of tea but it obviously suits plenty.

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Apologies for hijacking this thread, but my observations may be relavent.

We are currently in Dorset viewing new statics and sites we thought with the aim of giving up touring and buying something more permanent.

Totally confused - it seems to be a money-grabbing exercise for site owners.

The ABI caravan we are interested can be purchased directly from the manufacturer for less than £60000.

Site A will sell and install on a pitch for £70000 with annual site fees of around £7000 (plus gas, electricity, water, insurance etc).

Site B is asking for £110000 for the same caravan (without some optional extras such as washing machine) but with site fees of £6700 plus all the extras.

We prefer site B but I'm damned if I will pay the £40000 premium (profiteering?) For the better location. In addition the "new" ABI caravan on site B was purchased in 2019 and has been sited in their demonstration area.

Site A will purchase new from ABI.

I know it's up you us to decide on whether to take it or leave it, and we have!  Touring here we come again!

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A static caravan is not an investment.

Ignore those adverts suggesting that you can buy a lodge/static van in order to let it out and reap the profits.

The party certain of reaping the profits will be the park owner - they have a guaranteed income from your pitch fee, which may well increase year-on-year.

If they act as renting agents, they get an extra bit in commission.

All the costs (renting incurs extra costs in the way of insurance, maintenance,safety checks etc.) and all the risks are yours.

If you want something as a hobby, or to keep you occupied, then it could be worth a go - you may make money, you may lose money, or you may break-even.

If you want something purely to make money, a static is not usually the answer - it is not impossible, some people do make a profit, but even more people don't.

 

 

 

 

 

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3 hours ago, CliveB said:

Apologies for hijacking this thread, but my observations may be relavent.

We are currently in Dorset viewing new statics and sites we thought with the aim of giving up touring and buying something more permanent.

Totally confused - it seems to be a money-grabbing exercise for site owners.

The ABI caravan we are interested can be purchased directly from the manufacturer for less than £60000.

Site A will sell and install on a pitch for £70000 with annual site fees of around £7000 (plus gas, electricity, water, insurance etc).

Site B is asking for £110000 for the same caravan (without some optional extras such as washing machine) but with site fees of £6700 plus all the extras.

We prefer site B but I'm damned if I will pay the £40000 premium (profiteering?) For the better location. In addition the "new" ABI caravan on site B was purchased in 2019 and has been sited in their demonstration area.

Site A will purchase new from ABI.

I know it's up you us to decide on whether to take it or leave it, and we have!  Touring here we come again!

My father-in law spent about £150k over 20 years in depreciation on 2 caravans (had to change every 10 years) and annual costs. He knew what he was about but had 20 years of holidays which he and the family very much enjoyed.  The site was and is one of the very best and he would do it again I am sure if his health was better. So if you dont mind spending the money, making good friends and having stressless holidays this is the way to go.

 

 

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We treat our static as our second home, on the cheap.

We’d never be able to afford a bricks and mortar second home and the associated costs involved. So we have our static instead and spend as much time in it as we can.

Its not cheap to buy one, some site fees are very expensive, you have to make sure you know what you’re getting into...research, research, research.

Dont forget sites are businesses, they’re in it to make money as any business is. If you’re not prepared to spend whatever money it’ll cost you, not just to buy it initially but year on year, then walk away.

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if your primary concern is investment then buy a flat, or a small house, Have the gas and electrics inspected, get a decorator to give it a once over and place it with a management company to let for you. Yes they will take a cut, yes they will charge you top price for any maintenance as their contractors usually give them a kick back, but you need not get involved at all. Property prices are not guaranteed but it is very unlikely the value of your asset will fall, and certainly over a period of years almost certain it will increase and you get a regular income from the rent, less expenses and costs of course. A good letting agent should even provide an annual statement which will help you fill in a self assessment or pass to a tax accountant and they will file tax returns for you. 

 

On the flip side a static caravan will depreciate from the moment you buy it, you will need to actively promote letting it, don't rely on the site to let it for you. When it comes to the end of life or reaches the age at which your chosen site no longer accept it you will be faced with considerable costs of disposal, or relocation and selling old statics is about as easy as crossing the Atlantic on a pedalo. 

 

As an investment I would not touch a static caravan with a disinfected barge pole. 

Mercedes E350 CDi AMG Cabriolet, Lunar Freelander 640EW Twin Axle @1700kg

 

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It was never our intention to make a profit on the purchase and rental of a static caravan. We did hope to recover some of the costs by renting in peak holidays when we would never normally go away (hatred of crowds).

Our estimates are that with initial costs, depreciation (over 10 years), site fees, insurance, services and other costs we would be looking at an expenditure of around £16,000pa and income through peak times rental of around £5000pa (after site management fees). Therefore costing us over £11000pa.

We would probably use the caravan for 8-10 weeks per year, and other family members for a further 2-4 weeks (at mum and dad's expense).

If we gave up the tourer we reckon that we could rent a similar "prestige" caravan low-mid season for £800-£1200 pw so around £8000-£12000 for holidays for the year.

It's definitely not an investment, at best breaking even depending on the number of weeks we are willing to let.

Plus after years of touring in new locations at home and abroad do we really want to go back to the same location week after week?

 

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8 minutes ago, PMW said:

if your primary concern is investment then buy a flat, or a small house, Have the gas and electrics inspected, get a decorator to give it a once over and place it with a management company to let for you. Yes they will take a cut, yes they will charge you top price for any maintenance as their contractors usually give them a kick back, but you need not get involved at all. Property prices are not guaranteed but it is very unlikely the value of your asset will fall, and certainly over a period of years almost certain it will increase and you get a regular income from the rent, less expenses and costs of course. A good letting agent should even provide an annual statement which will help you fill in a self assessment or pass to a tax accountant and they will file tax returns for you. 

 

 

PMW your reply crossed mine.
We have already been to the holiday flat scenario. We purchased a flat in Dorset in 2000 and sold in 2015 at a profit (capital gains grrr).
It was purely for our own and family use and was not let.
Expenditure around £2500pa over the 15 years, and in use  For around 12 weeks pa so really cost effective (the increase in property value of £35000 offset most of these costs).
In the end we did not look forward to going back to the same location, and needed the capital to buy a new main home.

 

 

 

 

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We rented our static out at Unity Farm,Brean about 12 years ago.

Fantastic site,especially for children.

We managed to secure bookings for the peak weeks but didn't "make a killing".

I decided to clean the van every Saturday in between lets.

I had to be there by 10am,then had about 4 hours before new people arrived.

4 hours may sound a long time,but also factor in cutting the grass,repairing/replacing broken items etc...

Some people just couldn't care less about someone else's property. 

If you are seriously thinking of buying and letting a static out to the public,factor in the insurance costs,all electrical and gas appliances have to be professionally tested,and.....be prepared for what you find from the previous customers!!!!!!!!

Unmentionables on bedsheets,items broken,fridge,cooker,microwave,garden etc.. left in a disgusting state....and after the letting season cools off.....you really want to Holiday in that van??

 

Never....ever again.

 

Sorry to sound so negative Steve but hope this helps with your decision.Good luck.👍

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A property management article

 

"Some examples of malicious damage include:

 

A couple went away on a “make or break” weekend. After only a couple of days, the woman decided to leave and her partner decided to stay. However for the remainder of his stay, he trashed the holiday cottage and on his departure, he even attempted to burn the property down.

 

When people go away they want to relax, have fun and in some cases, party. Whilst parties are fun they can easily get ‘out of hand’. We’ve seen broken windows, doors that have been ripped off hinges and graffiti all over the walls. Naturally, an unwanted and upsetting surprise for property owners.

 

Revellers cause £40k of damage to a holiday home. This rented holiday flat was also trashed after a drug-fuelled New Year party.

 

  • Common accidents that happen when renting out holiday accommodation include:
  • Spillages on carpets or soft furnishings
  • Scratches along walls from suitcases, or on the floor caused by guests moving furniture
  • Young children doodling on the walls/furniture
  • Iron mark on carpet
  • Cigarette burns
  • Stained/soiled mattress
  • Ember damage to the carpet/rugs from open fires
  • A broken TV/window/coffee table because of ‘indoor sports’
  • Scorched worktop
  • Broken/jammed DVD player
  • Shoe marks on walls from swatting insects"

Good luck!

 

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