Basic Knowledge

[AndyMcD]

Thanks everyone so far.  Next few questions, I know they are a bit subjective but thinking more ballpark answers please:

1) What degree of depreciation in value does a Static caravan have?  I imagine similar to cars, greater depreciation in the early days, but not sure what the percentage depreciation would approximately be after 5 years, 10 years and 15 years.

2) At what age does a static caravan start needing more maintenance other than a wash and polish, anything in particular needing maintenance after say 5years, 10years or 15years?

I know the question is subjective to how well a static has been looked after etc.

Thanks
Andrew

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[fhb2]

Hmm - depreciation on a static.
Yes, depreciation is faster in the early days - but very difficult to compare to a car, or even a towing caravan, as neither need to be sited.
If the resale value is something that is of major importance to you, then a static may not be a good choice.

A static that does not have a site will sell for peanuts.
To sell it remaining on site, you first need the permission of the site owner to sell it in-situ (which is something you should make sure is in your contract).
Then, the resale price will have to take into consideration how many years it will be allowed to remain on site.
And finally, whatever you sell for, there is a commission to be paid to the site owner, which again should be in your contract - this can be up to 15% of the sale price (plus VAT) (the commission is reflecting the fact that the value of a static mainly comes from WHERE it is, not WHAT it is).

The general rule of thumb is to forget all about resale value, consider the purchase price as money lost forever, and buy a static solely for the pleasure you will have in using it. Then the resale price will not be a shock, you may even be pleasantly surprised.


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[Sparkalicious]

I have to agree with FHB2

We went into our ownership basically knowing that we will get our monies worth out of it over the 15 years. Whether that be through just our visits or maybe renting it. We did dip our toe into renting but it didn't agree with us. Was stressing me out someone being in our pride and joy and then there was damage so we pulled the plug. Maybe later on when we may not visit as much anymore or we upgrade, we could keep this one and rent it on the side. Even if you did try to sell it, I've heard that the sites (the big ones anyway) will stitch you up and take a large-ish commission.

As for wear and tear. Well the lino will need replacing I can tell you that. Ours is new but the lino is not very hardy and will get punctured by pretty much the lightest touch with a pointy thing.
Sofa covers I reckon. Mattresses, these were pretty poor to start with. The kitchen will probably need to be replaced at some point just through kids. We'll do our best to keep it ship shape but things will last just about as long as it does in a normal home.

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[Scorpio]

I agree, at the end of the licence term (15/20 years or whatever), the van should be considered worthless.  During that time, resale value will be very low in comparison to what was initially paid.  The value is in having your own place to go to whenever you want (Site rules permitting), without needing to book in advance.  Some Sites allow renting out, which can provide an income to offset the running costs, but that has its' pitfalls.  The Site we are on does not allow subletting, which is one of the reasons we chose that Site.  Regarding maintenance, it is variable, but with care, most items will last as long as they would in a house.  The main thing to watch out for is damp from condensation, but that should not be a problem if you take preventive measures.  Good luck with your research.

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