Buying A Static Caravan Holiday Home – What You Need To Know
Have you thought about buying a caravan on holiday park but are confused about buying a static caravan? Read out tip and advice on buying a holiday home to avoid the serious financial mistakes that thousands of people make each year.
Buying a static caravan holiday home can be a great idea which could change your life for the better, but, if you don’t research the cost of owning a static caravan and research the company and the park you are buying from then it could be the worst mistake you have ever made.
First of all, I would like to say, buying a holiday home in the UK has been one of the best things that I have ever done. But that is because I did a lot of research beforehand and took everything the sales person told me with a pinch of salt. To be honest, due to the twelve months of research that I did I knew more than the salesman about his own park and the costs of owning a static caravan. However, not everyone is as lucky as me, and that is why it’s important to research buying a static caravan.
I have brought you an in-depth guide into buying a holiday home in the UK and have also put together frequently asked questions about buying a static caravan. This article has been put together to help people avoid the serious financial mistakes of buying a UK holiday home.
Why Buy A Holiday Home in the UK?
The first thing you need to think about is why you are buying a static caravan. Are you buying a UK holiday home as an investment, or a place for your family to have wonderful holidays?
First of all, if you are thinking of buying a static caravan to sell on for a profit then forget it. A static caravan never increases in value. However, if you are buying it to make money renting it out to holidaymakers then you could make a nice profit if you do it in the right way.
It is very important to think long and hard on why you are buying a holiday home.
Make sure the Holiday Park has everything you need
You should never buy a caravan on a holiday park after just one visit, this is a huge mistake that thousands of people make. It is important to visit the site at least four times to make sure it has everything you could possible want.
It is important that you choose a park that suits your requirements, and one that has a good reputation.
Location Of The Holiday Park
It is important to decide how far you are willing to travel. A lot of people recommended not travelling more than three hours to a holiday park.
Never Go Over Budget When Buying A Static Caravan
It is so important that you never go over budget when buying a caravan. Finance is an easy option, but tens of thousands of people who choose finance and who go over their budget regret it and find themselves in serious financial problems.
Frequently Asked Questions About Buying A Static Caravan
After I have bought my caravan are there any additional costs?
Holiday companies in the UK vary widely on their additional costs, but in general the following costs of running a static caravan will be the same on most parks.
Each year you will have to pay a pitch fee, these pitch fees never stay the same and will always go up. Holiday companies are very greedy with their pitch fee increase and to be honest you do not really see any improvement in the parks when the fees go up.
Other costs involved in owning a caravan include gas charges, electric, insurance, water and rates. Some parks charge shocking amounts for the yearly water rates. You could expect on some UK holiday parks to pay as much as £700 per year.
When buying a UK holiday home, it is important to ask the sales person what additional charges you must pay each when buying a holiday home. All this information will be in the contract you sign when purchasing your holiday home.
How long are UK holiday parks open for?
The answer to this question depends on the holiday park you are buying your caravan on. Each park has different seasons. Some stay open for 12-months while others stay open for just eight months. It is important to investigate how long the holiday park is open for before making a purchase.
How long can I keep my static caravan on the holiday park?
Let me first say when a sales person tells you there is no age limit on their park don’t believe them. A lot of sales people do one thing when selling you a holiday home. What is that you ask? They lie. Oh, and they also do a second thing when selling you a static caravan and that is lie. There is also another tactic they use to sell you a UK holiday home, have you guessed what that is? That is correct they lie.
The length of time you can keep your caravan on the holiday park is in the contract, so make sure you read the contract first. There is no point in you buying a second-hand caravan for £30,000 when you can only have it on the park for ten years.
The normal rule is the caravan can stay on the park from twenty years from when the static caravan was built. So, if you buy a caravan which was manufactured in 2007, it means that you will receive a contract for around ten years. Don’t be fooled by the promise you can keep the caravan on the park for as long as you want.
Do I need to insure my static caravan?
The simple answer is yes. It is important that you insure your caravan. Most parks have this as part of your pitch licence, but it is common sense to insure something you have paid a lot of money for.
Most holiday parks require proof each year that you have insured your static caravan. A lot of holiday parks will offer to do the insurance for you, but I would suggest that you shop around to get the best deal.
Can I rent or sublet the caravan?
Although some holiday parks have it in their contract that you cannot sublet your caravan, you will find that most holiday parks allow you to make money from your caravan. In fact, most holiday parks encourage it as the more people on the park the more money they will make.
Subletting your caravan is a great way to help pay for your pitch fees. Some holiday parks have a scheme in place where they will do all the work for you, but as always, they will take their cut which eats into your profits.
There are a lot of great ways to advertise your caravan for hire which includes Facebook and Twitter.
Can I live in my holiday home?
The answer is no. A holiday home is just that, it is a static caravan for you to take a holiday in and spend relaxing times at the weekend or in your spare time. Even though some holiday parks in the UK are open for twelve months, you are not allowed to have that static caravan as your permanent address.
Do I need a TV license for my static caravan?
If you have a TV license at home, then you do not need one for your static caravan.
Can I sell my caravan?
The caravan is your property so yes you can sell your static caravan. However, a lot of parks have in the contract that they have first refusal. My advice is, sell your caravan privately.
A holiday park will not give you what your caravan is worth. They will give you stupid money. I have seen caravans worthy £25,000 being bought by a holiday park for as little as £4,000 and then the following week being sold for £27,000. So, although the holiday park has first refusal, I would say sell it to a private buyer.
The terms and conditions of selling your caravan will be in your contract but, you will find that the holiday park will make money from the sale which they like to call an administration fee.
Should I Buy A Caravan On Finance?
This is one of the biggest questions that people ask and the only person who can really answer it is you. But here is my take on buying a caravan with finance; Don’t Do It.
When it is a nice sunny day buying a caravan become more attractive, and with the sales person showing you all these lovely expensive caravans with all the mod cons it starts your heart racing. But what you must understand is, buying a caravan on finance can be very expensive and this is one of the biggest mistakes people make.
When you buy a caravan on finance you will find for the first year there is no site fees to pay. But after that first year you must pay site fees. Now, imagine buying a static caravan on finance and you are paying £400 a month for that caravan. Then think about the site fees you must pay which can be another £400 a month and then running costs on top of that. Before you can even enjoy your caravan, you could be paying nearly £1,000 a month. That is just an example of a more affordable finance package, there are many other horror stories where you could be paying a lot more.