Caravan holidays are back after almost 18 months. The COVID-19 pandemic managed to put a lot of things on-hold, including caravaning. Now that things are looking a little better, caravan enthusiasts can once again get back out there and enjoy themselves.
The return of caravaning and caravan holidays have got a lot of people thinking – is investing in caravans worth it? More specifically, these people are interested in investing in static caravans, where they get to have more control over their properties, and can manage them better.
These investment ideas are not random in any way. People are seeing wealthy business owners invest millions into such caravan parks and static caravan housing. And the returns on investment in such cases are usually quite lucrative. Thus, it is easy to see why many are considering taking their savings and investing them into something like static caravans.
In case you too are wondering why you should invest in static caravans, here are a few good pointers to help you decide.
Caravans are Cost-Effective
Be it for regular use or as a holiday home, static caravans are not that expensive to buy, especially if you opt for used ones. A pre-owned caravan can cost anything between $10,000 to $65,000. New ones cost around $25,000 to $120,000.
Buying a static caravan will prove to be cost-effective if you buy a pre-owned one. That is because the value of a static caravan depreciates at 15 percent every year. Hence, buying a used one makes more sense as you will not have to face a steep depreciation in the first few years.
Holiday static caravans, where you have more amenities than a regular housing caravan, can cost a bit more to purchase and maintain. That is because these holiday caravans usually come with all the modern comforts you need to enjoy your holidays.
Gas, electric, council, and site fees will cost an additional $1,000 to $3,000. Luxury sites can cost over $10,000 in additional expenses.
Easy to Insure
When you are buying a property, be it a mobile home or a luxury apartment, you must insure it. Static caravans are easy to insure in the sense that you can always find agencies who will handle all the paperwork for you.
A static caravan insurance company like NACO can help you ease into the caravanning lifestyle by taking care of all your insurance needs. Their cheap fees and on-demand support are a few of the many reasons why static caravan owners trust them so much.
You can visit https://www.nacoservices.com/ to check out the services they offer, and get a quote based on your specifications. You can also request support or advice from their technical team of static caravan and property experts whenever you need them. The presence of such companies like NACO makes insuring static caravans a lot less painful.
Profit off of Your Static Caravan
Renting out your caravan to holidayers is a good way to earn some money back from it. With your caravan set in a desirable caravan park or country club location, you can earn upwards of $1,200 a week by leasing your caravan. You can earn even more if your caravan is equipped with modern-day amenities like a washing machine, temperature control, WiFi, etc.
Rent prices can reach upwards of $1,500 a week during peak season. That is when you should be targeting to make most of your profits since the weeks and months that follow will not be as busy.
Static Caravans will Last You A Few Decades
As long as you keep them well-maintained, these caravans can last up to 30 or even 50 years. Of course, over that period, the value will depreciate. Even then, you can always get the caravan’s value up by renovating it from time to time.
A quick renovation job every 5 years will cost no more than $5,000 (or $10,000 if it is a luxury caravan). After renovating, the caravan will look as good as new, and you can continue renting it out to interested people.
However, you might have to settle for a lot less than what you have spent on your caravan if you want to sell it. That is because the depreciation will continue even after all the renovation you do. So in case you want to make it last long, it is best that you keep renting it out.
That is all for this article. Hopefully, these reasons will make you realize why it is a wise idea to invest in a static caravan, and what you can gain from doing so.