Will Buying A Static Caravan Be A Worthwhile Investment?
The popularity of caravans has been on a steady incline in the recent past, and understandably so. Caravanning comes with plenty of benefits, especially for travelers looking for an off-grid experience.
For instance, in traditional accommodation arrangements, you’d need to retreat to your hotel or lodge facility every evening. But with a caravan, you only need to find a suitable campsite nearby. And even if there’s no camping site around, there are always friendly people who’ll let you spend a night on their property free of charge or for a nominal fee.
Traveling in a caravan is also far more affordable than renting a car. That’s especially considering that most caravans offer various amenities.
It’s even better if you own a static caravan. You get to enjoy all the general benefits of caravanning, in addition to having a holiday home that you can retreat to whenever you please.
The best part is there are numerous static caravans for sale. You only need to know how to choose one.
This post shall attempt to uncover whether it’s a great idea to buy a static caravan.
What Is A Static Caravan?
A static caravan goes by numerous other names, including holiday home, house trailer, or trailer home. It refers to a prefabricated home usually manufactured using polyvinyl chloride (PVC), coated stainless steel, or fiberglass panels and typically used as a holiday retreat.
Some static caravans may be occasionally converted into temporary residential shelters. However, these structures are almost exclusively manufactured with vacationers in mind.
Static caravans are often contrasted with motorized caravans. As the name implies, motorized caravans (also called touring caravans) are attached to a trailer and towed from one place to another.
Is Buying A Static Caravan A Great Investment Idea?
To answer this question conclusively, it’s essential to start by understanding the average cost of purchasing a static caravan.
Brand new static caravans cost anywhere between £15,000 and £100,000 (USD20, 000 and USD133 400). On the other hand, used holiday homes have a price range between £5,000 and £50,000 (USD6, 650 and USD66, 500).
But as you might expect, numerous factors go into determining the actual static caravan sales price. Examples include the quality of materials used, the brand/manufacturer, and the nature of customizations or modifications the van comes with.
Factors like your financing options could also affect the purchase price of a static caravan. One-time payments tend to be significantly lower than paying on higher purchase terms.
Also, note that static caravans come in all shapes and sizes, depending on the intended usage. While most holiday homes average 12 feet to 14 feet in width, you’re likely to find caravans as wide as 22 feet. The larger the width, the pricier the shelter is.
Besides the initial purchase price of a static caravan, there are several other associated expenses. Common ones include;
Disconnection and Transportation Costs
These costs are incurred when you buy a static caravan off-site. In this case, you’d need the caravan disconnected and transported to your favourite parking ground.
Disconnection fees average £100 – £400, whereas transportation fees cost anywhere from £300 to £3,000.
Note that the actual disconnection fees largely depend on the site where you purchase your caravan. Similarly, the transportation fees rely on the trailer company hired and the distance covered from the point of purchase to your desired parking ground.
Unless you are parking your static caravan on your property, there will always be fees on a static caravan site. Parking fees range from £1,000 to £12,000 per year.
However, note that the parking fees mainly cover park maintenance, security, and landscaping. It typically doesn’t include dedicated van maintenance.
Local Authority Rates
An ideal static caravan parking site should have enough water and bin collection and sewerage connection services.
But these services are offered by the local authority, and the charges are passed on to caravan owners. Local authority rates average between £200 and £600 per year.
Insurance is part of a static caravan’s ongoing ownership cost. It depends on the size and design of the van.
Small static caravans will incur an annual insurance fee of £150 – £400, whereas luxury caravans may attract as much as £550 – £700 in yearly insurance fee.
Numerous other factors may affect the exact annual insurance fee on your static caravan. Examples include the van’s initial purchase price and how you intend to use the holiday home.
Other ongoing static caravan maintenance expenses include gas and electricity (£500 per year) and winterization (£70 – £120 per year).
If you add the average initial purchase price of a brand-new static caravan and the associated expenses of maintaining the van, the total cost comes to £67 170 ($89 300).
NOTE: The average costs are calculated by adding the lower and upper limits and dividing the sum by two. For instance, a brand-new static caravan costs £15,000 and £100,000. The average cost would be calculated as: (15,000 + 100,000)/2 = 57, 500.
So, Is Owning A Static Caravan a worthwhile investment?
The average cost of purchasing and maintaining a static caravan may seem inhibitive at first glance. However, there are numerous benefits to enjoy by having a trailer home of your own.
If you’re buying a holiday home for personal use, it’s reassuring to know that you’ll never have to incur caravan rental fees each time you want to get away.
Another benefit of buying a static caravan is that you get to choose where to park the van. That’s in contrast to renting, where the nearest holiday homes may be located miles from your preferred getaway destinations.
What if you’re purchasing a static caravan for commercial purposes?
Well, it might interest you to know that static caravans can bring in £3,000 – £40,000 in annual rental income. So, even if you’re not actively using your holiday home, you can always sublet it for some extra money.
The rental income might even be higher depending on the caravan’s design and location. For instance, holiday homes designed for couples and families fetch higher than single-user cottages.
Owning a static caravan is a brilliant lifestyle and investment decision. With your own trailer home, you can plan your holidays whenever you deem convenient.
Another notable benefit of owning a static caravan is that you won’t have to incur rental fees. Plus, you can always sublet the caravan for a price.