IP in Caravan Park

[chara]

Hi guys,
I just wondering about IP in Caravan Park, and want to know about your opinion.
Does any one has 1 or more IP in Caravan Park? Can you share a bit here?

Thanks,
Chara

 

[Bazza]

You may make some short term profit on rent but I don't see any land content? Eventually, the caravan will be worthless and someone else owns the land.

Cheers,

Bazza

 

[Twitch]

Unless there is a title with land on it then it is not a property investment, but something else. Therefore any rules of thumb for property investment do not apply, eg, what is an acceptable yield for property would be completely unacceptable for this kind of investment.

 

[yorke]

To many caravan parks got sold to developers recently and the residents/owners got 6 months to move out. In a lot of cases even if they found a new place relocating was more expensive then just walking away. Even without the risk of being thrown out of the CP, full year occupancy and buying a caravan/cabin at cost by the time you pay your rent to the CP there won't be too much left for you. Then there is always rents going up and bad tenants to put up with.

 

[chara]

So, IP in caravan park is too risky, is it?
I thought, it will be good for some extra cash flow??

 

[Twitch]

So, IP in caravan park is too risky, is it?
I thought, it will be good for some extra cash flow??

Only looking at risk is pointless, as is only looking at return.

Give us some numbers and then we can chuck in our 2c.

 

[chara]

Lets say the house is $50,000.
I don't know how much is the rent in Caravan Park.

Thanks

 

[eastside]

I do not know much about caravan parks, however I do know that in the Sydney area due to the rental crisis people are turning to caravan parks for accomodation. And I'm talking about people with jobs, not people on benefits.

 

[Simon]

It isn't an IP.

It is a business venture where you are buying a depreciating asset and leasing it out - much like a truck or other equipment.

So see it as such and understand that it wont be an appreciating asset.

Finance wont be like an IP either.