Buying from Holiday Parks

If an investor is interested in a parcel of land located in a holiday park for his caravan, then he is in for a lucrative investment. There are a lot of things to consider, though, and just like any other real estate property investment, investing in a parcel of land in holiday parks requires some investigation first. One of the things to investigate is the commission. Most parks usually charges about 15 percent commission on a parcel of land. The investor needs to confirm with the park developer or owner if this commission is already included in the sale price. The investor should also check the yearly cost of running a static caravan in a holiday park also known as site fees like ground rent, rates and insurance, gas, electricity and many others. Knowing how site fees have changed over the past few years will give the investor an idea of how it will change in the future.

Another important thing to investigate is the number of people allowed to stay in a caravan at any given time, which can sometimes differ in various parks. If the holiday park has facilities, the potential buyer needs to confirm whether he and his family can have unlimited access to them.

Before going any further, check with the park owner on how long one's choice caravan will be allowed on its current plot. This should matter for people who choose their caravans basing on its location.

There are cases that parks only allow a certain number days of the week for the caravans to be used. So it also an important matter to discuss with the park owner. Although it may not be as costly as a traditional home, investing in a caravan still requires a lot of money. So it always advisable to get as much information as you can upfront to avoid any problems in the future.