This site uses cookies. By continuing to browse the site you are agreeing to our use of cookies. Find out more hereX

Home > Discussion Forum

Discussion Forum

antkel antkel is offline
Starting Out
Join Date: Mar 2006
Location: uttoxeter, staffordshire
Posts: 20
static holidays

hi all,

been looking into buy to let for a while now but am going to be struggling with the initial costs of mortgages ect, we will be moving shortly ourselves so not a lot of spare capital flying around!!
another idea i had was holiday property to-let, but again mortgaging, deposits and all the rest will not be easy for a while until my own move is over and done with.
another idea is buying static caravans (some are just like a bloomin house!) to let out as holiday homes. this will initially be cheaper to set up (i.e cost between £15k and £40k as opposed to £150k plus). its only been an idea up to now but thinking more about proceeding with it.
can any of you (highly inteligent and brainy) lot give any advice or oppinions on the subject? not sure even if you can get a mortgage on a static or even how much the insurance will be yet!

any views welcome, in return may be able to offer a cheap weekend away sometime in the future :-)

thanks in advance, ant.
Reply With Quote
grahammoody grahammoody is offline
Newbie
Join Date: Feb 2006
Posts: 5
Hi Ant,

I would imagine a static caravan would be like buying a car. Sure you would be able to get a loan on it, but once you buy it, its price will devalue. Then you have the other expenses like the site rent etc. I would be very careful in looking at the various costs before embarking on this.

Graham
Reply With Quote
antkel antkel is offline
Starting Out
Join Date: Mar 2006
Location: uttoxeter, staffordshire
Posts: 20
hi and thanks graham,

i know , it does need a thorough look into. would have to pay site rent, cleaning and some sort of disposal facilitys i should think. only an idea at the moment need to know the obvious stuff like will the income cover the outgoings and a bit more and how much depreciation over time. also got a feeling the insurance will be stupidly high.

ant
Reply With Quote
MailOrderCo MailOrderCo is offline
Connector
Join Date: Jan 2004
Location: Earth
Posts: 773
It will require a bit more looking into, Yes cars do go down in value and so will a static, but remember people have made fortune's renting out car's aswell ;-)
Reply With Quote
InnoCreate InnoCreate is offline
Connector
Join Date: Oct 2005
Location: Essex
Posts: 413
Hi ant,
I have a friend who sells static caravans for a "park resorts" site near me.
The homes start from £13k (to 100k) which got me thinking could be a nice little investment - they do credit which is like £200 a month (over 5 or 6 years) for it which is pretty affordable and the 13k vans aren't that bad.

I sat down with her though and worked out the expected income from renting a home out, minus site fees and paying for the home and it worked out it would still cost me 2 or 3K a year if i was able to rent it out for the whole season at the top price and that was if i cleaned and maintained it myself. If the resort took care of that i'd loose even more money.

My friend did say herself you'll never make money out of static caravans and if she could of just sold it to me and let me find that out myself - she'd of got about a grand comission.

If you found somewhere with almost nill site fees you might be able to make a small profit - but most people that buy the homes and rent them out also use them for themselves and so don't mind having to pay the couple of thousand a year themselves.

I think site rental on park resorts was something like 3k or 4k a year + your £200 a month for the purchase = £2400 a year = 5.4k - 6.4k a year. You need 6 months rent at about 1k to cover the costs - which for the small vans you'd never acheive.
I guess you could get a loan from the bank over a longer period of time but having had an indepth chat with her about the vans etc i wouldn't advise that route.

The other thing to bear in mind is that these vans devalue very quickly and when the parks resell them they tend to take a massive cut of the resale value - my understanding of the contracts also means you have to resell the van through the parks sales team and cannot sell privately.

In my honest opinion look for something else but if you find the figures do add up let me know because i've only looked into this based on the "park resorts" sites and fees and so i'd be interested to know if else where it does add up.
__________________
James Brand

Managing Director
Innovative Creations Ltd
Bespoke software solution specialists, EPOS solutions and web development.
Reply With Quote
antkel antkel is offline
Starting Out
Join Date: Mar 2006
Location: uttoxeter, staffordshire
Posts: 20
thanks for all the info james,

will still have a scout around and try to find some more info, will let you know if anything turns up,

ant
Reply With Quote
urban1 urban1 is offline
Guru
Join Date: Jul 2005
Posts: 128
I did some extensive research into this about five years ago for a relative, and came to the same conclusions as above. The season for caravan rentals is also a consideration. Most parks only open from Easter to around October. A lot of rental caravans are owned by individuals who use any money earned to contribute to their site fees and don't need to make a profit. The sites themselves are restrictive and may have certain terms in place to not allow letting, or having to go through their own system. A lot of sites have their own rental units so you would be in competition. There are a lot of costs to consider such as ground rent, rates, utilities, bottled gas, maintenance and cleaning etc...
Many sites also have a maximum age limit for the caravan and other restrictions.

To make it work I think you would need your own land in a good location. I would probably consider using log cabins as they are very popular and offer a full twelve month season. They also last longer, but the initial investment would be quite high.
Reply With Quote
InnoCreate InnoCreate is offline
Connector
Join Date: Oct 2005
Location: Essex
Posts: 413
Hey Ant, me again.
Have you considered buy a property in an up and coming tourist destination - somewhere like croatia or in a country like chez republic or romania thats about to join the EU with the next intake (2007 i think).

For 40k you could probably get something quite nice and if your in it for the long term could potentially make huge profits with the resell value. Just look at property prices in france, spain, italy and you can see whats happening to the EU property market and even places like turkey have got a very boyant property market.

I know some people will say it's risky but thats where u need to spend some time doing your homework and buy a property in the right location and at the right price.

Yeah sure world political events could affect the property price and mean you end up in negative equity but the same goes for the UK. In some area's of the UK we are seeing people who have recently purchased property and are seeing a drop in the property value. I know a couple of area's last year property prices actually fell by a few percent. If it's a long term investment then chances are you'll ride out any political events and still end up with a nice profit - just look at dubai and the united arab emerites - property prices and tourists fell after septermber 11th but are now at a record high.

It was the above that got me thinking about the static caravans in the first place. I think the property in the UK market has been saturated but internationally i think there is still great potential.
__________________
James Brand

Managing Director
Innovative Creations Ltd
Bespoke software solution specialists, EPOS solutions and web development.
Reply With Quote
antkel antkel is offline
Starting Out
Join Date: Mar 2006
Location: uttoxeter, staffordshire
Posts: 20
thanks all

is looking to me now that the sites are the ones who make all of the profit out of the statics, may be leaving that idea!

good info on the houses james, did look into the croatia market a year or so back and ended up getting side tracked, its hard to keep on top of projects like that when trying to work full time (sometimes away from home) found it impossible to get info without the old internet! may be pushing it a bit now but do you know any good places to look into this subject?
Reply With Quote
antkel antkel is offline
Starting Out
Join Date: Mar 2006
Location: uttoxeter, staffordshire
Posts: 20
p.s just looked at your website james......impressive :-)
Reply With Quote
InnoCreate InnoCreate is offline
Connector
Join Date: Oct 2005
Location: Essex
Posts: 413
hi ant,
glad u like the site - new one on it's way soon though - should be much more impressive

I'm not sure off hand where you could look. I guess a good place to start is google.
Ive just done a quick search and turned up this: -
http://www.property-abroad.com/A-Gui...in-Croatia.htm
http://www.visit-croatia.co.uk/property/ - this looks like a good link!
http://www.dreamcroatia.com/

Just had a look at some of the properties on the last link - looks like the croatian property market may have already exploded - although i think it's worth being scepticle when u see these prices as i'm sure they're inflated for international buyers. The price the locals pay in countries like that v's the price me or you would pay are sometimes quite different. U might need to find a freindly local to help you out or something.

My dads mate built a basic log cabin in chez republic a couple of years ago - only cost him £800 as he used local labour in one of the non touristy towns. I'm not sure what the value of the land was but he got given it by one of the local families (that he knew) because they needed a new 4x4 or truck and couldnt afford to buy one so he bought a cheap second hand one for them and they gave him a couple of acres. Not a bad deal!

He did have to set up a company in chez republic so he could own the property. - I think this is the same in some other countries - the individual isn't allowed to own the property but they are able to setup a basic company which costs hardly anything and the company can then purchase the property - thats bureaucracy for u - but i can understand the country trying to protect itself.
__________________
James Brand

Managing Director
Innovative Creations Ltd
Bespoke software solution specialists, EPOS solutions and web development.
Reply With Quote
antkel antkel is offline
Starting Out
Join Date: Mar 2006
Location: uttoxeter, staffordshire
Posts: 20
thanks

just been looking at those sites myself!
does look a little inflated, but, like you say you cant beat being hands on and taking a 'working' holiday to have a look around 1st hand at the local prices ;-)
Reply With Quote
Reply

Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts
BB code is On
Smilies are On
[IMG] code is On
HTML code is Off


All times are GMT +1. The time now is 04:11 PM.


Powered by vBulletin® Version 3.8.1
Copyright ©2000 - 2014, Jelsoft Enterprises Ltd. Copyright Shell LiveWIRE 2005-2009