These days, buying a bricks-and-mortar holiday home as an investment and revenue generator is a difficult task, especially in coastal resorts such as Devon and Cornwall, where house prices have risen sharply. So step forward the new solution to your problem: Holiday parks now offer private ownership of static caravans and lodges. This policy means that you can purchase a holiday home and generate an income to cover the costs and create a return on your investment whilst providing you with a free place to stay.
Many holiday parks have transformed in recent years into 'owner only' parks. They offer an ideal solution for second home ownership. These tend to be quality parks, possibly smaller in size, that are purely targeted at owner-only lodges and caravans. The benefit is a quieter park with a community feel where owners get to know each other. The vast majority of these parks offer sub-letting where you can let your caravan or lodge in the park to generate income to cover the cost of the site fees and offer a return on your investment.
Lodges tend to be more expensive than caravans and are easier to let if you are looking to generate a strong return on your investment, but the flip side of course, is that they cost more to buy in the first place. There are a large number of websites where you can list a holiday lodge available for letting, while many cottage letting agencies now let holiday lodges on established parks as well. The downside of buying a holiday lodge versus an actual property is that a lodge will have a limited lifespan, and at the end of the lease agreement, most parks will require that the property is sold off-site.
Holiday lodges and static caravans are all purchased on-site with a license determined by the park. From new, a static caravan would typically have a 15-year license with an option to extend at the end of the 15 years at the park's discretion. Holiday lodges usually have longer licenses, usually around 25 or 30 years. This means that the payback period for a lodge is significantly longer than for a caravan, although the purchase prices are generally considerably higher. To pay back the cost of a second home, you usually aim to take around 15 or more weeks' worth of bookings to cover the loan or repayment plus site fees. Site fees depend on the park: its size, facilities and location. Parks in the most desirable locations, near great beaches, for example, can charge higher site fees than other parks.
Static caravans and lodges are typically purchased new or nearly new, and the maintenance of these for the first few years is usually relatively small. If required, you will need to winter the caravan and drain down the heating system where applicable and boiler to prevent frost damage. Caravans and lodges are very easy to maintain and are designed to be relatively hassle-free.
The real key to having a holiday lodge and generating a return is the location of the park on which it is based and the facilities on the park. Many major holiday park companies now offer caravans for sale on the parks and have great facilities, with the obvious big facility that everyone wants being a swimming pool. The more facilities, the higher the cost of the site fees. Alternatively, you may have to pay for an entertainment pass on a weekly basis for your guests to use the park facilities. The second key consideration is the location of the park. Premium locations tend to be nearer beaches, especially in the south and south west of England, or within national parks. Consequently, the demand to buy static caravans for sale in Cornwall, Devon and Somerset on parks with beaches nearby is higher than for more inland parks or less popular tourist destinations.
Silverbow Country Park is one holiday park that offers caravans for sale in Cornwall and is situated less than three miles from the stunning Perranporth beach and is a short walk from the village of Goonhavern. It is a dedicated owners-only park meaning that all of the static caravans for sale will be privately owned. The park is open for 11 months of the year and is quiet and set in a stunning rural location, yet with easy access to the beach. This park is ideal if you are looking to buy a caravan or lodge on site in Cornwall with very competitive site fees. Please visit www.silverbow.co.uk for more information and to see the latest holiday homes for sale.