I can haz static caravan?

February 15, 2009 11:56 AM

Should we buy a static caravan in a seaside / touristy location, to use ourselves AND rent out? UK specific question and would love answers from those with actual experience of owning/renting. As our money is not making much interest and I fear could disappear, I am trying to persuade Mr LyzzyBee to invest in a static caravan. My idea is that we can use it for a week or weekend at a time, and also rent it out in between. Don't need to make a LOT of money, covering the site fees would be a good thing, and maybe a little more. Should we get one at the seaside (North Wales or Weston-super-Mare are the closest to our Midlands home) or somewhere scenic like Worcester or Stratford? Is it worth it / a good investment (well, not an investment, more just not LOSING money as such) given that we have given up on European holidays due to the euro/pound parity.

Also - does anyone know any good web sites for advice / lists of sites that sell and allow rental - I have got into a mass of adverts and links with no proper info etc and can't find one/ a few sources.

posted by LyzzyBee to Sports, Hobbies, & Recreation (8 answers total)

In the part of Essex where I used to live, a lot of people had caravans that they used at weekends and rented out at other times. I rented a couple myself from time to time, on the Essex coast, and once in North Wales.

The main disadvantage that I found was being in close proximity to very noisy and fairly chavvy families who had little or no disregard for other people's comfort or boundaries. Noisy kids, dogs, music ... that was enough to put me off what was always a cheap holiday but which had a different sort of cost in terms of peaceful enjoyment of the amenities.

I recall one person I rented a van off telling me that the van owners were essentially at the mercy of the site owners in terms of rents charged for plots, and they were also obliged to buy gas and electricity from the site owners too, at grossly inflated prices. Don't buy a brand new caravan - they depreciate faster than a new car. Most sites have second-hand ones for sale, usually vans that have been repossessed by the site owners for non-payment of fees.

It might be worth renting a van yourself on several different sites before making an investment.
posted by essexjan at 12:13 PM on February 15, 2009

We had the opportunity to buy a static caravan on the Severn a few years back and I can't tell you how much I regret not having done so. I think it's a brilliant idea but essexjan is absolutely right in suggesting that you to check the parks thoroughly before choosing the site.

As to location, there are quite a few places in Pembrokeshire (especially Tenby) that are still relatively unspoilt and peaceful and not too bad a drive from the Midlands.
posted by ceri richard at 12:38 PM on February 15, 2009

Response by poster: Oh I should have mentioned we don't drive so need one within reach by public transport (we don't need a train station on the doorstep, happy with train/bus)

Thanks so far!
posted by LyzzyBee at 12:47 PM on February 15, 2009

Have you checked how much it would cost to go to Weston-Super-Mare or Barry Island for a weekend by train? Going on a Friday evening, say, 24 April, and coming back on the Sunday, 26 April would cost about £100 for two people. That's without bus/taxi to the site. Multiply that by 20 weekends a year and you've spent a lot of money before you've even got there.
posted by essexjan at 1:53 PM on February 15, 2009

My parents have had a static caravan in Essex for longer than they've had me (ie. 34 years+) and are wondering whether to keep it on because the site charges are phenomenally expensive - not just the ground rent, but the compulsory insurance, services, etc. (and it's not a luxury site of any kind) They worked out that they could have several fancy holidays abroad a year for the cost of just keeping the caravan where it is, let alone the initial investment of buying it.

Caravans depreciate a lot too, and will eventually fall apart after a certain number of years (their first one lasted about 25 years before the rain came in through the roof, and by then it was one of the oldest on the site), so although they can give you a fab holiday, I don't know how much sense they would make as an investment. Given the current low property prices, could you run to a cheap holiday flat instead, which is more likely to keep its value (/walls/ceiling/etc)?

That said, those are questions for you to think about rather than answers - I've never done the sums myself, and my comments are just based on second hand experience. Good luck whatever you choose - I do have to say that our childhood caravan holidays are among my happiest memories!
posted by penguin pie at 2:21 PM on February 15, 2009

There are caravans for sale at Brean Sands (Somerset) starting at about £16,000 for a second-hand one, with site fees from around £2,500 per year, not including services.
posted by essexjan at 2:36 PM on February 15, 2009

Oh, and in the link above, you only have a licence for 12 years, after which time you would be expected to upgrade to a newer model or sell it back to the site owner at 'current trade price'.

Sounds like a win-win for the site owner, and an expensive holiday home for the buyer.

So, a £16K caravan over 12 years would be £1,333 per year.

Add site fees of at least £2,500 a year. Insurance of another £250 a year, and then gas and electricity, I'm guessing, at another £1,000 a year.

So it's costing £5,000 a year, before you've even travelled to the caravan. Assuming fares of £100 for two people for a round trip, 20 times a year, that's another £2,000. One of the things that keeps caravans as a relatively cheap holiday option is being able to pile in the car and drive down at a moment's notice. If you're reliant on public transport, it looks like a far less attractive proposition.

I'm not trying to pour fuel on the fire here, but the economics of it are that it's not a good investment at around £7k a year.
posted by essexjan at 2:44 PM on February 15, 2009

Response by poster: Thanks everyone. Although we wouldn't have gone to it 20 times a year and would have got the coach rather than train, I can see it wouldn't be economically viable and will rethink. Which is why I asked here! Thanks!
posted by LyzzyBee at 12:05 PM on February 16, 2009