Here is a link to the Visit England website where you will find a wealth of data/statistics which may help form your decision to buy.
https://www.visitbritain.org/england-research-insights
Working out occpuancy/ what I will get from this.. HOW?
A few observations - High £400s isn't very high for your peak rate. I was charging that five years ago on my park property, but your charges are governed by the quality of your property, the site and what you offer.HPD wrote: It is a holiday chalet in Isle of Wight. Near the sea, bit of a walk to the shopping part. No clubhouse at the moment (site awaiting to be bought).
Other chalets there charging up to high £400s for August.
Chalet can sleep 4 - double bedroom, bunk beds, but some also have a sofa bed so potentially sleep 6 although they aren't big so would be a squeeze!
Site is closed from early January until March.
No clubhouse but site awaiting to be bought? If the new owners decided to build one, great yes you get facilities, but not everyone wants them. My site doesn't have them and that's one of the plus points rather than a negative for my guests. The build cost will be absorbed by the new owners as they're not allowed to pass those costs on but when it's up and running, the running costs will be passed on to the leaseholders, so expect your service fees to go up by a chunk.
Ha yes the current owner.. I thought was too cheap as well. Of course I would ring round a few companies and investigate further before signing up to anything!Casscat wrote:HPD wrote:..apparently a changeover clean would be £30 per stayReally? Are they prepared to come and work in Spain?
That is unbelievably cheap. Someone might be spinning you a yarn. Did this come from the current owner or selling agent?
Nemo wrote:A few observations - High £400s isn't very high for your peak rate. I was charging that five years ago on my park property, but your charges are governed by the quality of your property, the site and what you offer.HPD wrote: It is a holiday chalet in Isle of Wight. Near the sea, bit of a walk to the shopping part. No clubhouse at the moment (site awaiting to be bought).
Other chalets there charging up to high £400s for August.
Chalet can sleep 4 - double bedroom, bunk beds, but some also have a sofa bed so potentially sleep 6 although they aren't big so would be a squeeze!
Site is closed from early January until March.
No clubhouse but site awaiting to be bought? If the new owners decided to build one, great yes you get facilities, but not everyone wants them. My site doesn't have them and that's one of the plus points rather than a negative for my guests. The build cost will be absorbed by the new owners as they're not allowed to pass those costs on but when it's up and running, the running costs will be passed on to the leaseholders, so expect your service fees to go up by a chunk.
There is a clubhouse it's just closed at the moment. Now the current owner (I'm aware she can tell me what she likes so will check it out) said the site fees are set by some regulation so will only raise nominally?!
Nemo wrote:No point buying something just because it's what you can afford. For it to succeed you have to invest something of yourself into it, whether that's simply checking on it for repairs and maintenance or going for regular short trips. If the ferry costs don't work for you to do regular trips then it's not a great starting point. I also wouldn't buy a chalet as an investment, unless you're sure you can achieve the figures you need. You don't get much, if any, capital growth on a chalet as it's effectively a depreciating asset due to the lease length. Therefore the asset is in the income it can bring in. Being on an island brings in an added stress.HPD wrote:It is just what I can afford cash! There aren't many holiday-type places near me. There is Devon but that is slightly more expensive. Again though I still wouldn't be able to visit that that often as I work full time.
Hmm..!
Having said that one of my hubbies colleagues lives full time on the IOW and commutes to the mainland every day. These things can work for you if you want them to.
Interesting what you say about the ferry. I'll look into that. Can you explain what you mean about making the ferry part of the holiday?
The chalets have gone up slightly over the years but as you say meanwhile lease is decreasing. I want my money back when I sell it even if no profit. Don't know how likely this is?!
Not sure how often we would go but am sure would go there sometimes
You do not say what construction the chalet is. Have you checked the life expectancy of the building? If it is old it could cost a lot in maintenance.HPD wrote: The chalets have gone up slightly over the years but as you say meanwhile lease is decreasing. I want my money back when I sell it even if no profit. Don't know how likely this is?!
It's some sort of stone, but no I haven't so that is something I will check too!Bunny wrote:You do not say what construction the chalet is. Have you checked the life expectancy of the building? If it is old it could cost a lot in maintenance.HPD wrote: The chalets have gone up slightly over the years but as you say meanwhile lease is decreasing. I want my money back when I sell it even if no profit. Don't know how likely this is?!
Hi there. I had thiught I probably wouldn't accept dogs in the fear it might put people off. But maybe would consider as could attract more guests!Bunny wrote:+1zebedee wrote:£30 seems awfully cheap for a changeover. Does it include your towels and linen?
The biggest issue for guests is having a property which is cleaned to a high standard. People will look around and see absolutely everything when they arrive so you must be confident that what you are paying will get you the standards that you need, particularly as you are not on site to check the cleaning standards.
Also, do you plan to take dogs? This will help bring in bookings out of peak season, but it will require more cleaning.
Having read more about your personal situation, it wouldn't be an attractive investment for me. I think you could spend far too much of the income generated from a 9 month year, on fixed overheads and travelling over to sort out any problems. Good property managers/maintenance people do not come cheap either. Or does the site provide these services?
No the site fees only naintenance outside, the site doesn't deal with individual chalets. The site fees are £1500 a year. There is not gas. Electricity is on a meter. Zero business rates. What other overheads? Trying to research as much as possible!
I'm not looking to make loads just more than my money would make in a savings account which is not much! My main concern would be getting my money back when it comes to selling.
Thank you
With a decreasing lease, you won't get your money back. Several owners on my park have lost many thousand having bought 5-8 years ago and are now selling. They did perhaps pay a premium for newly refurbished properties but I still wouldn't expect to get my money back.
Have a look at the Leasehold Advisory Service for lots of useful information on leasehold properties. Here's a link there for service charges. http://www.lease-advice.org/advice-guid ... s-england/
Have a look at the Leasehold Advisory Service for lots of useful information on leasehold properties. Here's a link there for service charges. http://www.lease-advice.org/advice-guid ... s-england/
Oh no really...they have gone up in price but the lease is now 85 years. I'll have a look at the link. Thank you.Nemo wrote:With a decreasing lease, you won't get your money back. Several owners on my park have lost many thousand having bought 5-8 years ago and are now selling. They did perhaps pay a premium for newly refurbished properties but I still wouldn't expect to get my money back.
Have a look at the Leasehold Advisory Service for lots of useful information on leasehold properties. Here's a link there for service charges. http://www.lease-advice.org/advice-guid ... s-england/
Thanks bunny, couple on there I had missed. How much is to licence and insurance? (If there is an average?!). Thank you.Bunny wrote:Other overheads would include insurance, internet provision, possibly water rates, TV licence (possibly a hotel licence covered by the site?), advertising, website creation/maintenance, consumables, towels, bedding.
I'm afraid there's no average for insurance. I pay approx. £300 per annum on a sleeps 8 cottage but only £120 for a shepherd's hut (not let). It also depends on level of cover i.e. I do not have cancellation cover. Hopefully someone with a park home will be able to give you a better comparison.HPD wrote:Thanks bunny, couple on there I had missed. How much is to licence and insurance? (If there is an average?!). Thank you.Bunny wrote:Other overheads would include insurance, internet provision, possibly water rates, TV licence (possibly a hotel licence covered by the site?), advertising, website creation/maintenance, consumables, towels, bedding.
With regard to a hotel TV Licence it is the same as a domestic licence (£145.50 per year for a set quota of properties with small increases for additional properties) but they have to be within the same curtilage. I'm not sure if it would apply if they are in different ownership. The site owners should be able to tell you if they offer any TV licence for the site. For now, you can assume you will need to factor in £145.50.
Another cost would be redecoration/maintenance/repairs/breakages. Holiday homes have to be done far more regularly than your own home and the work is ongoing.
Last edited by Bunny on Thu Aug 25, 2016 8:08 am, edited 1 time in total.
Thank you that's useful to know! So much to think about but looks like it might be a bit too risky when it comes to selling itBunny wrote:I'm afraid there's no average for insurance. I pay approx. £300 per annum on a sleeps 8 cottage but only £120 for a shepherd's hut (not let). It also depends on level of cover i.e. I do not have cancellation cover. Hopefully someone with a park home will be able to give you a better comparison.HPD wrote:Thanks bunny, couple on there I had missed. How much is to licence and insurance? (If there is an average?!). Thank you.Bunny wrote:Other overheads would include insurance, internet provision, possibly water rates, TV licence (possibly a hotel licence covered by the site?), advertising, website creation/maintenance, consumables, towels, bedding.
With regard to a hotel TV Licence it is the same as a domestic licence (£145.50 per year for a set quota of properties with small increases for additional properties) but they have to be within the same curtilage. I'm not sure if it would apply if they are in different ownership. The site owners should be able to tell you if they offer any TV licence for the site. For now, you can assume you will need to factor in £145.50.
