Hi, my first day here, we really would love a chalet on Glan Gwna country holiday park, Caernarfon.
We just want to be able to cover site fees and council tax which depending on which chalet could be anything from £3,600 to £4,000.
We would be willing to have every week available for letting and really don't need a profit. Is there anyone that can give us a really good idea of this being viable.
We have found a chalet we would love to buy but
We're finding it so difficult to get the question answered, were ready to take the plunge but having retired early were living on an income that is allowing us to have a nice life but not enough to cover these fees.
If we turned a profit then we would like to consider a second in the future.
Thank you for reading, any advice is very welcome
chalet, north wales, do we buy?
Firstly welcome to LMH and secondly buyer beware! Park and/or leasehold properties should not be bought without due care and attention and a good solicitor on board. Read and re-read the contract with a fine tooth comb and understand the repercussions of bills rising on an annual basis. Ensure everything, absolutely everything is in writing.
I went in eyes wide open, was savvy enough to ask questions that most others didn't even think about and have lived so far to tell the tale running a successful business. Others have not been so lucky and have regretted their purchase.
Read this article as a good example of things you should be aware of when buying a lodge or chalet type property. A property that moves is slightly different to a building fixed to foundations but many of the things to look out for are similar.
Personally I'd say don't even consider entering the market if you're not prepared to fully market it as a proper holiday let at realistic or market prices. You do no favours to yourself or your fellow business owners if you just enter it as a hobby and to cover costs. Those costs just go up! Once you start renting, you'll have more to pay out for than you realise, when you factor in wear and tear as well as all the bills. Price it correctly and it should be able to supplement your income.
Sorry this is not meant to put you on a downer, just a reality check that if you buy a park property, it is likely to be the most complicated transaction you ever enter with the most repercussions. You will be bound by the park rules which is different to just having a little cottage in a pretty village somewhere. Far too many park owners are basically little more than sharks. I have no idea about your specific park, I've just come across enough to know how many are out there.
If you decide to go for it then jump in, enjoy it but be prepared for hard work. I don't regret it, have a business I enjoy, and get to spend more time in a place I love, albeit always a working trip as there's that pesky maintenance to deal with! A bit like the forth bridge, you can never finish.
Good luck!
I went in eyes wide open, was savvy enough to ask questions that most others didn't even think about and have lived so far to tell the tale running a successful business. Others have not been so lucky and have regretted their purchase.
Read this article as a good example of things you should be aware of when buying a lodge or chalet type property. A property that moves is slightly different to a building fixed to foundations but many of the things to look out for are similar.
Personally I'd say don't even consider entering the market if you're not prepared to fully market it as a proper holiday let at realistic or market prices. You do no favours to yourself or your fellow business owners if you just enter it as a hobby and to cover costs. Those costs just go up! Once you start renting, you'll have more to pay out for than you realise, when you factor in wear and tear as well as all the bills. Price it correctly and it should be able to supplement your income.
Sorry this is not meant to put you on a downer, just a reality check that if you buy a park property, it is likely to be the most complicated transaction you ever enter with the most repercussions. You will be bound by the park rules which is different to just having a little cottage in a pretty village somewhere. Far too many park owners are basically little more than sharks. I have no idea about your specific park, I've just come across enough to know how many are out there.
If you decide to go for it then jump in, enjoy it but be prepared for hard work. I don't regret it, have a business I enjoy, and get to spend more time in a place I love, albeit always a working trip as there's that pesky maintenance to deal with! A bit like the forth bridge, you can never finish.
Good luck!
Thank you so much for your honesty.
We wouldn't underprice just to get bookings, we really are hoping to turn a profit as we would then love to buy more.
It's just that it's so scary thinking we could buy then not be able to afford the fees.
If that happened it seems the chalet would go back to the site owners at no cost to them so you can see how important it is to get info hopefully from people like yourself with experience.
Thank you for pointing out the drawbacks and the link that I am going to check out right now.
We wouldn't underprice just to get bookings, we really are hoping to turn a profit as we would then love to buy more.
It's just that it's so scary thinking we could buy then not be able to afford the fees.
If that happened it seems the chalet would go back to the site owners at no cost to them so you can see how important it is to get info hopefully from people like yourself with experience.
Thank you for pointing out the drawbacks and the link that I am going to check out right now.
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Joanna
- Posts: 1091
- Joined: Thu Aug 23, 2007 3:12 pm
- Location: Chester, North West England & Sidmouth, East Devon
- Contact:
You need to sit down with a spreadsheet or calculator and go through all the costs, as with any business venture.
As well as council tax and site fees you also need to allow for all the running costs (gas, electricity, wi-fi, TV) some of which might be dictated by the Park.
There'll be initial furnishing plus allowance to replace things as needed (which will be more frequently than you would at home).
If you're providing bed linen & towels then you'll need 3 sets of everything & remember to allow for mattress and pillow protectors too.
Also allow for advertising - web site, listings, etc.
All that will give you your startup costs and annual overheads.
Check if the Park restricts use to certain months of the year.
If you're paying for cleaning and laundry then get some quotes so you have an idea of the cost of each booking.
Then look at how other owners are pricing for the same Park. The tricky part is estimating how many bookings you'll get - in Wales you can probably count on the school holidays and shoulder months, Christmas and New Year (if the Park allows it).
We were ridiculously over optimistic when we bought our first cottage, and it took us about 5-6 years to reach our initial predictions, mainly because we learnt how to market & price it from experience.
The question is probably whether you can afford the time to learn from experience? The first year is inevitably the most expensive. We subsidised our house for the first few years as we saw it as a long term investment and used it a lot ourselves.
Can you contact anyone who is already on that Park and persuade them to talk about their experience there?
As well as council tax and site fees you also need to allow for all the running costs (gas, electricity, wi-fi, TV) some of which might be dictated by the Park.
There'll be initial furnishing plus allowance to replace things as needed (which will be more frequently than you would at home).
If you're providing bed linen & towels then you'll need 3 sets of everything & remember to allow for mattress and pillow protectors too.
Also allow for advertising - web site, listings, etc.
All that will give you your startup costs and annual overheads.
Check if the Park restricts use to certain months of the year.
If you're paying for cleaning and laundry then get some quotes so you have an idea of the cost of each booking.
Then look at how other owners are pricing for the same Park. The tricky part is estimating how many bookings you'll get - in Wales you can probably count on the school holidays and shoulder months, Christmas and New Year (if the Park allows it).
We were ridiculously over optimistic when we bought our first cottage, and it took us about 5-6 years to reach our initial predictions, mainly because we learnt how to market & price it from experience.
The question is probably whether you can afford the time to learn from experience? The first year is inevitably the most expensive. We subsidised our house for the first few years as we saw it as a long term investment and used it a lot ourselves.
Can you contact anyone who is already on that Park and persuade them to talk about their experience there?
Jo
Joint owner of Baker's Cottage in Chester & Chandler's Cottage in Sidmouth
Joint owner of Baker's Cottage in Chester & Chandler's Cottage in Sidmouth
Hi Joanna,
Thank you for your help, yes the park is open from beginning of March to 4th Jan so Christmas and new year are available to let.
I have spoken to the park management who advised that they have a couple with two chalets, one for themselves and one that more than covers the costs of both.
I have managed to get replies from a couple of owners via there advertisements but they only rent out to subsidise but say they know others that turn a profit.
Since reading here I have been back in touch with one owner to ask how she has found the site and the family that run it in relation to site fees, demands etc but she has only praise for them.
I have just received the legal pack from one that is being auctioned soon so I need to find a solicitor capable of dealing with going through it with a fine tooth comb.
Thank you
Lois
Thank you for your help, yes the park is open from beginning of March to 4th Jan so Christmas and new year are available to let.
I have spoken to the park management who advised that they have a couple with two chalets, one for themselves and one that more than covers the costs of both.
I have managed to get replies from a couple of owners via there advertisements but they only rent out to subsidise but say they know others that turn a profit.
Since reading here I have been back in touch with one owner to ask how she has found the site and the family that run it in relation to site fees, demands etc but she has only praise for them.
I have just received the legal pack from one that is being auctioned soon so I need to find a solicitor capable of dealing with going through it with a fine tooth comb.
Thank you
Lois
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charles cawley
- Posts: 1205
- Joined: Tue Sep 21, 2010 1:53 pm
- Location: Herefordshire, Shropshire, Borders
There's quite a bit of info about this here: http://www.holidayletsforsale.com/advic ... ttage-let/
Buying a holiday park let / home does need a deal of care as Nemo said. Quite often you end up paying for the seemingly low prices.
Buying a holiday park let / home does need a deal of care as Nemo said. Quite often you end up paying for the seemingly low prices.
No web-site for now.
Advice about holiday letting
Advice about holiday letting