Buying our first static caravan
Discussion
We have a pine cabin on a nice, fairly large site in Dumfries & Galloway on the coast about 80 miles from where we live.
We have just had the site fee renewal, and a revision of the terms and conditions. When we signed up, we had 30 years, but that has been reduced to 23 years with no consultation, which we need to look at legally. Our place is 16 years old and extremely well maintained, but that leaves us with a quandry. Seven years and buy a new one at £100k plus, or move off and walk away from what was a £90k holiday home.
The cabin was extremely well used for the first 6 or 7 years, but 2019 it was only used for 28 nights between us and our children. That means each night cost us circa £150 a night, not to mention the depreciation on the asset, and when it was used by us, it required repainting outside and the decking painted, so it was not a holiday home, but a second home requiring maintenance. Like a previous poster, I DJ and play in a band, as well as working full time, so weekends are limited for us, but the double edged sword is, these extra jobs pay for the place and keep the Porsche on the road. At that point, we were on the cusp of selling and cutting our losses.
During Covid times, when we were allowed to travel, and I had no gigs, the place was used extensively, and it became good value for money again, but as the entertainment industry opened up, work flowed in, and since September, the place has hardly been used.
It is an expensive luxury, no two ways about it. I often ask, would I buy another? The answer is no. However, we have given the place this year, see how it gets used, and if the usage is small, then a decision needs to be made, and cut losses and get some return back. Even with 7 years left, that is still the better part of £30k in site fees alone, 7 years of maintenance, not to mention depreciation.
There have been many changes on the site over the years, some for the better, some not so, and recently the focus has been on moving older caravans off. Where we are, there have been lodges sited, some approaching that 23 year threshold, so will be interesting to see what happens to them over the next few years, if we last that long there.
Its definitely not something to go into with your eyes closed, and as long as you are prepared to write off a significant sum of money, then it does kind of make sense.
We have just had the site fee renewal, and a revision of the terms and conditions. When we signed up, we had 30 years, but that has been reduced to 23 years with no consultation, which we need to look at legally. Our place is 16 years old and extremely well maintained, but that leaves us with a quandry. Seven years and buy a new one at £100k plus, or move off and walk away from what was a £90k holiday home.
The cabin was extremely well used for the first 6 or 7 years, but 2019 it was only used for 28 nights between us and our children. That means each night cost us circa £150 a night, not to mention the depreciation on the asset, and when it was used by us, it required repainting outside and the decking painted, so it was not a holiday home, but a second home requiring maintenance. Like a previous poster, I DJ and play in a band, as well as working full time, so weekends are limited for us, but the double edged sword is, these extra jobs pay for the place and keep the Porsche on the road. At that point, we were on the cusp of selling and cutting our losses.
During Covid times, when we were allowed to travel, and I had no gigs, the place was used extensively, and it became good value for money again, but as the entertainment industry opened up, work flowed in, and since September, the place has hardly been used.
It is an expensive luxury, no two ways about it. I often ask, would I buy another? The answer is no. However, we have given the place this year, see how it gets used, and if the usage is small, then a decision needs to be made, and cut losses and get some return back. Even with 7 years left, that is still the better part of £30k in site fees alone, 7 years of maintenance, not to mention depreciation.
There have been many changes on the site over the years, some for the better, some not so, and recently the focus has been on moving older caravans off. Where we are, there have been lodges sited, some approaching that 23 year threshold, so will be interesting to see what happens to them over the next few years, if we last that long there.
Its definitely not something to go into with your eyes closed, and as long as you are prepared to write off a significant sum of money, then it does kind of make sense.
You will only ever get a tiny fraction back - and the site owners hold all the cards.
The only way to ever buy one is to be prepared to mentally write off the entire purchase cost immediately - anything you ever get back is a bonus.
They can work exceptionally well if you use them a lot - or be a complete disaster if circumstances change - unless you are already reconciled to just walking away & taking whatever is offered as a bonus.
I've had one for over 10 years and it's been fantastic - but I know others who have been horribly burned.
The only way to ever buy one is to be prepared to mentally write off the entire purchase cost immediately - anything you ever get back is a bonus.
They can work exceptionally well if you use them a lot - or be a complete disaster if circumstances change - unless you are already reconciled to just walking away & taking whatever is offered as a bonus.
I've had one for over 10 years and it's been fantastic - but I know others who have been horribly burned.
We did this 10 years back, owned for 3 seasons, when we sold we lost £3k on caravan and site fees £2k per annum / 9k.
For that we had three six week summer holidays, Easter holidays, may holidays, bank holiday weekends in Dorset and on Sandbanks beach. We bought it to just use ourselves and enjoyed using it as a base.
Was great, but kids both got in to sport which restricted our visits.
I’d recommend looking at and negotiating site t&c’s especially resale fees, age restrictions around caravan sale on park, licence length [we pushed from 10-12 to 15 years]. Watch that they don’t have rights to bump you between pitches and / or increase site fees disproportionately.
Might be worth buying a holiday cottage instead, using a holiday let mortgage when you factor in 12-15 years of site fees, plus appreciation versus depreciation. We’ve now got two holiday let’s in Wales with business rate relief that we rent out instead.
For that we had three six week summer holidays, Easter holidays, may holidays, bank holiday weekends in Dorset and on Sandbanks beach. We bought it to just use ourselves and enjoyed using it as a base.
Was great, but kids both got in to sport which restricted our visits.
I’d recommend looking at and negotiating site t&c’s especially resale fees, age restrictions around caravan sale on park, licence length [we pushed from 10-12 to 15 years]. Watch that they don’t have rights to bump you between pitches and / or increase site fees disproportionately.
Might be worth buying a holiday cottage instead, using a holiday let mortgage when you factor in 12-15 years of site fees, plus appreciation versus depreciation. We’ve now got two holiday let’s in Wales with business rate relief that we rent out instead.
Edited by bennno on Friday 7th January 21:12
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