Fazer Owners Club - Unofficial
General => General => Topic started by: Kosmic Kartman on 13 July 2015, 04:38:36 pm
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Anyone here own a static holiday home?
Need advice on advantages and disadvantages. Pitfalls to look out for re renting out etc, etc, etc.
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Yeah, I nearly bought one a few years ago.
Pitfalls, oh yes:
1. Greedy landowners who will only allow them onsite up to (say) a maximum of 10 years old, then you'd suddenly have an asset that has depreciated a vast amount, and the cost of selling it outweighs any advantage.
It's not as if you can attach it to a car or small van to remove it of their site is it?....You need specialist transport and that's going to cost loads.
2. Check how many weeks of the year you are allowed onsite? That was another determining factor why I said no.
3. Who manages it, and what insurance is allowed by landowner?
4. Monthly or annual fees payable to landowner, and when are the increase due?
5. Are they about to sell the site and you see a massive increase in rent?
Ask to see a contract before you pay any money or agree to anything.
Your home is at risk if you do not keep up payments against it :rollin :lol
Hope that helps,
Cheers
Ray (Just Fazered)
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We seriously considered one, thought it would be a great idea to take the family too, guaranteed holidays etc etc but it was the site fees that really put us off, plus insurance, plus gas and electric etc etc.
I suppose it depends on how much you use it and if you want to rent it out because that can help with the costs but we didn't like the idea of renting it out to strangers plus renting does make it less flexible for visiting spur of the moment.
Oh, and the depreciation of the van, that put us off too. You've got to be prepared to pretty much kiss goodbye to the cost of the van over time. Add that to the rent and it's pricey.
We just borrow our friend's one once a summer and give them £30 a night...... BARGAIN!
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Pitfalls, oh yes:
1. Greedy landowners who will only allow them onsite up to (say) a maximum of 10 years old, then you'd suddenly have an asset that has depreciated a vast amount, and the cost of selling it outweighs any advantage.
It's not as if you can attach it to a car or small van to remove it of their site is it?....You need specialist transport and that's going to cost loads.
2. Check how many weeks of the year you are allowed onsite? That was another determining factor why I said no.
3. Who manages it, and what insurance is allowed by landowner?
4. Monthly or annual fees payable to landowner, and when are the increase due?
5. Are they about to sell the site and you see a massive increase in rent?
My grandparents had one which was over 10 years old and the site owners wanted to upgrade the field they were on meaning it had to be move to a new field. Suddenly the 10 year old rule came up and they ended up buying a newer one.
Other pitfalls are contract related too.
Some only allow you to sell back to them or take a massive commission on any other sales meaning a van bought today for £30K is only worth £10K in the bank to you in 12 months time.
As has been said above too, how many weeks are you allowed to use it? Even if it is all year round (unlikely) the on-site shop, bar, gas outlet etc will be shut.
Some don't allow you to rent it out unless it's through their booking office with a massive commission.
Annual ground rent can be prohibitive.
Gas can only be purchased through them at a massive mark up compared to the local Calor Gas outlet.
You are better off digging a hole and throwing your money in it. Alternatively, if you want a challenge and an eventual profit, buy a house in France.
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Why would you want to go on holiday and do all the washing up? :lol
My missus would kick me out if I took her on holiday and we still had to cook and clean etc :rollin
I'd rather spend the extra money on bike bits :D these caravans/statics are a big investment these days
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Freck, they are not an investment, they lose money.
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Freck, they are not an investment, they lose money.
OK, if you want to be pedantry, they are a big capital outlay :rolleyes
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putting it simply
DON'T FOCCING DO IT!!!!.
the f-i-l had the misfortune to buy one and it cost us a bloody fortune in site fees, maintainance :rollin , gas etc.
don't forget in the small print they add they won't let it out for you once it is 5/6/7 years old and yours will always be at the back of the list when they can rent it out.
the only people to make money from static sites are the land owners. don't forget that if you move it off site, it will become worthless as well!
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The sun's £9.50 holiday options are in big statics at hundreds of locations- why tie yourself down with your own when the whole family can holiday for £50?
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When I've taken the kids away years ago, I just looked in the local papers, but nowadays plenty advertise on Gumtree and the likes, then I just booked up for the week etc and most of the hires threw in passess for the swimming etc.
Far far better than buying one, no hassles, arrive, enjoy, leave....Simples :)
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The sun's £9.50 holiday options are in big statics at hundreds of locations- why tie yourself down with your own when the whole family can holiday for £50?
Looking to buy one to let out mostly and maybe the odd weekend away. More income that holidays.
Still looking into it but I also thought I'd run it passed the foccer font of knowledge.
The site is an award winning site that is well looked after and has good reviews. It's won the David Bellamy Conservation Gold award for the past five years and a few other awards that don't mean a lot to me and taking with a pinch of salt. Most homes are owned as holiday homes by mature people with only a small number let out by the site.
There is an option of "pre owned" or new. A new one will come with a 12year licence. I don't know exactly how old the pre - owned one is but it's currently used as the show home. The can be kept on site for 24 years with a yearly licence renewed after the first 12 years. After that there is a £300 disconnection fee that includes jack down ready for removal. Probably worth diddly shite after that. So scrap, sell it to gypos or park down the end of the garden and turn it into another man cave.
I'll need public liability insurance and need to get installed electrical items PAC tested.
Site fees are at present £2,386 PA. Plus £54 winter drain down charge. Electricity is pay as you go. If I let it the site will charge £25 per let regardless of length.
As mentioned they want to screw me for gas which is £74 a bottle. I'll find out about the size of bottle tomorrow and any other detail when I'll go and have a look at the site.
Also has free WI-FI, an outdoor heated swimming pool, a Club with seasonal family entertainment (March to November), a launderette, a children's playground and a shop.
I'll add I'm still doing the maths to see if this is viable and will offer any kind of income.
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I pay £30 for a 13kg gas bottle, just for reference!
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I pay £30 for a 13kg gas bottle, just for reference!
I pay less than that. Don't forget I've moved off the national grid last year to the middle of nowhere. :lol
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Caravan sites and the likes use 47kilo size, mainly delivered to point of use by local supplier or by the site owners and of course they'll put their wee profit on as they've got you by the short n curlys, much they same way as they've got you by the price of the van and the fees for keeping there.
Meant to add earlier....
When we as a family were at one of these sites many moons ago, we saw someone buying one of those 'ex demo' models and within the time of them selling it, the park owners came out, took the fie sale, ex demo etc and moved the caravan and put another one in its place, stuck the signs back in etc
We did notice they had a line of caravans round the corner, seemed just a big con to make money, so don't get swept away.
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We had a 33", three bedroom static for over 20 years - and loved it when the kids were young, but grew out of it as they got older and wanted to spend weekends doing their own stuff.
On the site we were on (in the grounds of a mediaeval castle), letting wasn't permitted for most of the time were there.
But, in the 80's, when it was allowed, there were lots of issues with the renters - bad behaviour, didn't look after the caravans, didn't follow the site rules; basically didn't care because they were only ever there for a week.
A lot of the owners who rented out regretted it big time - repair costs, cleaning/replacing carpets, furniture, crockery etc, plus, it's a bind having to wash all of the bedding, all of the time - on top of washing all your home stuff - more of an issue if the site is not on your doorstep.
Personally, I wouldn't say it's a gold-mine business opportunity - if after all these years it was, then a lot more individuals would be doing it.
On reputable sites, there is also a bit of class discrimination, with renters and rental owners sitting firmly in the "undesirable" class amongst the 2nd/holiday home owners, which can also make life/things a little bit awkward.
But, I suppose it all depends on how the site owners run things.
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I got one, payed twenty grand for it, I had a friend who recommended the site, so all was checked in advance, it,s great we get away most weekends. . I am not renting it out as we want it for ourselves, all in gas elec sewerage, bins grass cutting, etc etc, 3200, a year, that's about 10 pound a day, that's the cost of a packet of fags, will prob get 17 years out of it, he makes 3 quid on a gas bottle, good luck to him,
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We had a 33", three bedroom static
How small??? :rollin
How big Is your fazer then? :lol
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My friend bought one about 3 or 4 years ago,, all the promises of rents to cover the purchase price,you have holidays too,,,,,now he has had to get his inlaws in to buy a share as it,s costing him so much,,,they are graded as to the quality,,class 1 gets you a better rent,class2 lower etc,,theirs had no heating, so class 3 , they sold it on and bought (spent more money) for a heated one,,,moved up a class,,now a couple of years on the park owners have down graded it to a lower level and they get lower rent,,,not best pleased.
They have problems with the gas bottles , renters keep the heating on and use a lot of gas,, :eek,,
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They have problems with the gas bottles , renters keep the heating on and use a lot of gas,, :eek,,
Can't he put something in the rental agreement to cover this?
Part of the deposit etc? You can get gauges to tell what's in the cylinder, it's done by weight so he could even use scales and charge against the deposit of what gas us used, just a thought.
Maybe I'm just a good renter and don't abuse someone else's stuff, even when I go to a hotel etc but I do realise some people don't give a s*** :(
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Reading various other forums and sites I coming to the conclusion that this doesn't add up as an investment.
Anyone own and rent out beech huts? :lol
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Also those pay as you go electric meters eat £1 coins im sure you only get 50p worth from £1
You will also need another tv licence
I got one, payed twenty grand for it, it,s great we get away most weekends. all in gas elec sewerage, bins grass cutting, etc etc, 3200, a year, that's about 10 pound a day, t
My maths says most week ends = 104 days at most = £30 per day.
I suppose that you are paying for the freedom to just go whenever you want
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I had a static caravan, double glazed with central heating and large allround verandah for 7 years, great for the first couple of years, but the family grew tired of the campsite and facilities, and we used it less and less over the following years.
Kosmic unless there are lots of places and things to do it can become dull and boring after a few years, and you will have to sell via the site owners who charge fairly hefty fees, and also you have to take into account the annual site fees, fuel costs & maintenance of the caravan, so all in all not a good investment, stay well clear.
Why not join a time share project where you can swap your time and have differing destinations to holiday at, I know several people who do this and it works well. :pc
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The static holiday home is not really for us to holiday in but more to let out.
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3200, a year, that's about 10 pound a day
My maths says most week ends = 104 days at most = £30 per day.
Both calculations are correct in theory although neither are exactly correct, depends whether your looking at actual costs over the year or whether your working out how much it costs for the actual times you use it :)
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To let it out without the benefits yourself....
Ground rent etc £3000 a year including gas (pass on the £25 elec to the renters)
Depreciation around £3000 a year too if you are generous
Maintenance and repairs around £500 a year
£6500 / 52 = £125 in costs to recover.
If you manage to rent it out for 20 weeks of the year you need to average £325 a week in rent just to cover your costs.
I wouldn't but then I was mad enough to buy a place in France. At least I should get my money back on that though if I sold it.
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You could also go down the route of a large motorhome?
Lots more freedom, your not stuck in same place all the time, towbar on back and you could take your motorbike(s) too and you'd probably not lose as much as the end when you sell it?
Quick look on autrader and this one is for sale for £24000
http://motorhomes.autotrader.co.uk/used-motorhomes/burstner/active/2003-burstner-747-active-fiat-ducato-7-berth-diesel-darlington-mfpa-8ad08c6d4e53364d014e8829a810460f (http://motorhomes.autotrader.co.uk/used-motorhomes/burstner/active/2003-burstner-747-active-fiat-ducato-7-berth-diesel-darlington-mfpa-8ad08c6d4e53364d014e8829a810460f)
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Thanks for all your comments and feedback. I've decided to let this one go after doing the maths. As most most have said it doesn't make sense or add up.
I wasn't looking for somewhere to go on holiday or a motorhome. This was to get a bit of money rolling into the bank as a second brick built property is slightly out of my reach at the moment.
It's the depreciation factor that is the big spanner in the works. Also unknown equations that I'd have no control over... Site management fees etc. The site is also on the Suffolk coast and as you know this suffers badly from coastal erosion which is another factor I needed to take into consideration.
With that said I won't be investing in this... I'm out.
Cheer Foccers.
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Also do not forget that you will be needing to pay tax on your rental income, and send in a self assessment tax form each year
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don't buy it to make money because you wont, people only hire the newish ones, for about 600. jun jul aug, the rest of the year it is just drips and drabs, I also go on hols abroad, its like a car if you gotta ask how much fuel it takes you cant afford it, not meaning to be rude. I also spend a few weeks in the summer, and also winter when I got no work on, so it suits me, as for the twenty grand, just consider it gone,. also if I work down there I got a base,. saves hotel charges,. and claim back in tax,. simples.
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The depreciation is the killer. My dad had one so I inherited it. We have kept it on as my young kids love going there, but once it comes to getting a new one then then we will not bother. Better putting money into a holiday home to rent out, then you have a better asset.
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With that said I won't be investing in this... I'm out.
Cheer Foccers.
I didn't realise you were pitching an idea like dragons den :lol
Glad you've done your sums and decided what's right for your circumstances :)
Good wee community on here for not just bike stuff? I just love it :)