Hi,
We are starting out on our investment venture, did some lateral thinking and came with the possibility of investing in some cabins in a cabin/caravan park.We know of some cabins for sale at some of the nearby (Frankston) caravan village for about $50K – $65K. A possibility is to buy it and lease it back to the caravan village at a rate to ensure CF+. I guess this is similar to purchasing car parks and leasing it back to a car parking management company like Wilson.
Just wondering if anyone has been down this track before?
Any thoughts?
Hi tychin,
Welcome to the forum.
I had looked at the opportunity sometime last year but dropped the idea due to the following reasons:
* Limited capital growth
* Low LVR (around 65%-70%)
* You cannot do anything with the investment but lease it to the caravan park management
Hope this helps.
Sanjiv
*******“There is no passion to be found playing small – in settling for a life that is less than the one you are capable of living.†– Nelson Mandela
I looked into time share type units in Gold coast, and one thing I was warned about was if the managers don’t care for you, or you didn’t suck up to them, then your rental figures could be down compared to others that knew the kind of smooching to do. Also, you can’t take you business elsewhere to manage as stated above. At least if you own the full property you can take the management rights elsewhere.
kjs
Hi there every one, I’ve just been looking over a couple of old posts about investing in caravans. Like a said, the post were old and I was wondering if anyone has/seen/done this type of investing? From where I am the numbers are stacking but I’m looking for your support and input here.
Thanks,Gerrard.
Hi there Gerrard again.
How are you all going out there with you cash flow, are you finding it a breeze at the moment or are you seeing signs of a dry well?
What are your thoughts?
GB.
Gerald, you are buying a leasehold investment. As stated by others you are locked into an unfavourable/expensive management agreement, cleaning charges, letting fees etc and little or no growth.
If the park owner sells to a developer your rent will soon disappear. You only own the cabin not the land & you will have an obligation to make good the site.
Be realistic when it comes to setting an exit strategy – it takes 6-12 months to sell.
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