Park or caravan home - good idea?

[Livingintheclouds]

So will have a little bit of cash left over from my sale, and my son needs a place to live short term (six months to a year, though these are not full time residential homes). There's not much available for rent and any that are will always go to a professional person over my 18 year old. So I thought of investing in a holiday park home, which I could use myself eventually and rent out as a holiday let part time. I am looking at around £50k. After 20 years they expect us to upgrade (with part exchange) as they don't want outdated homes in the park, though if it's still in good nick they will grant short term leases, but I don't expect to own it more than ten years, and maybe no more than a couple.
It's not a place I would have thought of to buy, or even the location I would prefer (though it is a nice location popular with tourists) but we are desperate.
I know it's a depreciating asset, much like a car. I know if I sold in five years I would expect to sell for something like 25% less than what I paid, and the site owners take 15% commission. Letting it out will just about cover site fees and utilities, but I am thinking it will house my son short term (which would cost about £7000-8000 for a year if he rented a one bedroom flat) and give us a place to stay for some holidays for as long as we own it. But I can't decide. Any experience?

Have a search for some of the previous threads on park homes etc. There are a huge number of negatives, including the power the management/owners have over you in terms of utilities etc. I would steer clear if I were you.

We looked in to this a few years ago and decided they weren't a good investment.. mostly depreciating in value.

It s not in an area you love

Keep the money for now put in premium bonds

18 year rents a room in a house share they don't need their own one bed unless specific reasons

In few years put as deposit for son when he has income to get mortgage

@Grimbelina

Have a search for some of the previous threads on park homes etc. There are a huge number of negatives, including the power the management/owners have over you in terms of utilities etc. I would steer clear if I were you.

This ^

Most people recoup the site and admin costs by renting the home out.

investing in a holiday park home

They certainly are not an investment. They are a depreciating asset that costs a lot of money each year.

Insurance, site fees, utilities, etc. Also after a number of years, the site owner won't let you store your old van - so you'll have to pay to get it taken away and then pay for a new-er one.

I would never even consider one. Much easier and cheaper to rent one from some other poor sod who's been landed with one.

I wouldn't, they seem to be incredibly hard to sell judging by the quantity of them on rightmove.

You've clearly thought hard about the costs, and the depreciation. People own them, enjoy them, not all property is about investment and making money...

However, it seems to me as though this is being driven by your desire to house your son fairly short term (6 months to a year) and you are tagging on the idea of holidays rather reluctantly to help justify the decision.

If it's mainly to house your son, don't do it, it's not worth the hassle and loss of money. They can be really hard to sell on. If you aren't keen on holidaying there you either won't use it, or will go and resent the place.

Son can do what all the other 18 year olds do and get in a houseshare/rent a room for few years. Is there a reason he can't do this?

There have been a lot of stories about how the owners of the land have the caravan owners over a barrel with rents etc. and also saying caravans over a certain age can't be on the site and forcing them to sell them to the site owners at a loss.

You don't say where you are in the UK but where I am, you can buy a one-bed flat for less than £50k.

Please don't. Holiday parks are just that, for holiday use.

Semi-residential use is covered in this joint document by the National Caravan Council and the British Holiday & Home Park Association here...homingpark.co.uk/wp-content/uploads/2018/05/caravan-owners-guidance.pdf

Please read it carefully and discuss your proposed use with your park owner before you make any decisions, just so you are both clear on what is allowed.

I looked into buying one. Its cheaper to rent one for the time you would use it for. So say I wanted to use it Easter, May half term and 3 weeks in the summer holidays, for arguments sake 4.5k. I'd probably pay the same or a bit less if I owned it in site fees.
Its different if you want to live in it for a year I guess but I doubt it would be less expensive than finding one to rent for the same period of time.

OK thanks everyone. @Hollyhocksarenotmessy you've pretty much hit the nail in the head. We've tried the rental route snd there is literally nothing out there. My professional 40 year old friend couldn't even find a place- he's staying in a holiday let needing building work so can't be let out but it's only for this month. Things may be better in October when there are more winter only lets (we live on an island).

Renting one is £1400 A WEEK the next three months.

Is there a caravan site where you could get a seasonal pitch for a touring caravan? You'll get more back on it and have flexibility on moving it. Someone I know couldn't cope with her son living in the house with them anymore, but bought a cheap caravan and he happily lived in it on their drive for a couple of years, coming into the house to shower but otherwise self contained

I was just thinking the same as the above post, touring caravan up the drive (if you have one) over the summer months while it’s warm.

As long as he’s quiet and considerate re loud music parties with mates etc there shouldn’t be any issues with neighbours.

I'm moving 70 miles hence the need for housing. He wants to stay get more work experience then follow us.
He doesn't drive (pandemic stopping all lessons and now backlog for tests is four months).

Can he not get work experience in your new location?

If there are no properties available in the current area, he presumably has no money, and as you aren’t going to stay in the area, his choices are very limited.

Sometimes you can’t do what you want as it’s not practical. He probably wants to have his own pad, do his own thing etc as he is young and he knows you have money.

However if he’s going to follow you anyway and it’s going to cost you many thousands to house and no doubt feed him if he’s on a low income while he gets ‘work experience’ perhaps he will just have to cut his cloth as the saying goes ie he will need to move with you as otherwise he will cost you many thousands in caravan and legal fees etc. and that money could be better spent on a mortgage deposit for a house for him in future not wasted on rent now. Sometimes you can’t get what you want and he should know the value of money and understand that.

These should be seen as an expensive hobby not an investment. The site fees are also often staggering. I'd go for a touring van with seasonal pitch before putting £50k to that.

It’s not a wise choice to follow the Park home route, often the sites get sold on to new companies, and with it come new contracts to agree to that can be far more expensive and restrictive to the original contract you signed when you bought your Park home new.

If you disagree regarding the new contract and decide not to sign it, then you will be left with very little option but to remove your home from the site, no matter how old it is or how long it has been there.
This is where your problems will really start, finding another site that will agree to take a Home that they have not actually supplied themselves is as rare as Rocking horse Poo!
Sites make most of their profits from the actual sale and set up fees of selling the Home itself, and pitch space is precious to accommodate new sales. If you take a look on EBay, it is shocking just how little secondhand homes that are still in very good order actually sell for, some only sell for around 2k, and most people who buy these are people who have land available to site them under temporary planning permission whilst they develop a Traditional home of their own on Site.

You also mention renting out to give you an income when you no longer required it for the week yourselves. Sadly not everyone cares and respects other people’s property, and damage an theft of contents on sites by some Hirers is disgusting and very upsetting for the owners indeed, and not everything will be covered on you insurance, which is even more expensive when you enter the Holiday rental market.

I agree that the best way to go if you decide that a Caravan would be useful in this situation would be to follow the previous suggestions of finding a Seasonal long term pitch and buying a decent sized winterised Touring Caravan, designed for 4 Season usage to place upon it.

You can even get a Towing service to move it for you should you ever need to move to a different area, and set up and pack away is an hours job and completely DIY, probably even quicker the more experienced you become. Insurance is fairly reasonable too, and once your pitch fee is paid, all facilities and onsite utilities are usually free and included in the price.

I think enquire about caravan pitches and if viable buy a cheap caravan for your son to use.
Do people not take lodgers anymore?

How many people live on the Island?
Surely someone has a room they would love to let to your son?
Have you tried asking on local social media group?