Are park homes a good investment?

26 September 2020

A park home is a bungalow-style detached home. They have similarities to static caravans in the way they are manufactured, and usually occupy a rented plot of land on a privately-owned park.

But although they are covered by the Mobile Homes Act 2013, modern park homes have come a very long way from their caravan roots. Outside and inside, the average park home of today features every modern convenience.

Park homes can function as either a permanent residence or a holiday home. If you are considering downsizing and living full-time in a park home, it’s often an excellent investment—as buying and running costs tend to be much lower. Chances are you’ll be able to sell your house, buy a park home, and have a tidy sum left over.

Let’s take a look at a few other reasons why a park home is a fantastic investment.

Park home or holiday lodge?

Park homes are generally grouped with their larger, more luxurious cousins, holiday lodges. Although park homes are smaller than lodges (with a maximum width of 14 feet), they are designed to make the most of the space. Inside you’ll find multiple bedrooms, a gorgeous bathroom, and the latest fitted kitchens. There’s even central heating.

Do park homes hold their value?

The short but misleading answer is no. A well-made new park home (such as a Willerby!) will have a lifespan of eighty years or longer, but they tend to lose cash value as they get older. Perhaps it’s best to think of it as more like buying a car than buying a house. The value should be seen in the opportunities it will afford your family over the decades to come—not to mention the extra income it could potentially make you.

You’re investing in beauty and enjoyment

While it may not appreciate like a traditional property, your park home can still count as a tremendous investment. Especially when you take a broader view and include the things in life that money can’t buy.

Most holiday parks are dotted across scenic countryside or seaside locations. That means the real return on your investment is fresh air and beautiful views. The pleasure of waking up to hear the birds singing and lighting the barbecue for a leisurely lunch. The opportunity to enjoy relaxing walks, go bike or horse riding, and surf.

Having a park home as your second home makes escaping from everyday working life much more straightforward. No wonder many owners find themselves visiting their park home most weekends!

It may even make you money

Your park home is all yours to do with as you please. If you can tear yourself away for long enough, that means you can rent it out to other people too—and perhaps even make it pay for itself. You’ll find that most holiday parks are very accommodating when it comes to helping you find guests and make them welcome.

Remember, too, that having a second home in the UK can save you all the money you would have otherwise spent on package holidays and travel. Not to mention the stress and tedium of sitting around in airports.

Low running costs

A park home costs far less to run than a conventional property, especially if you choose a Willerby model, built to comply with the latest thermal efficiency standards. How much less? Well, it’s estimated that an average Willerby park home using mains gas costs £1.37 per day to run, whereas a typical 1960s-built bungalow costs £2.65 a day. Quite a difference over the long run.

It helps, too, that holiday parks are not allowed to mark up the cost of the utilities they supply to park home owners. Apart from a small admin charge, you'll pay the market rate.

Built for comfort and durability

We are one of the UK’s leading manufacturers of park homes, and our Oslo Wall System™ is a typical example of the outstanding build quality we produce. The internal wall surfaces have the look, feel, and practicality of plasterboard. That means you can hang pictures, mirrors, and even a big-screen TV on the wall with complete confidence.

How can you buy a park home, and how much will it cost?

A pre-owned park home can cost as little as £50,000, whereas newly built ones start around £87,000 plus VAT. Of course, like bricks and mortar, the more extravagant the property, the larger the price. You can pay around £144,000 plus VAT for the most luxurious models. That goes for the location, too.

You can’t get a mortgage to buy a park home, but that certainly won’t stop you finding the right finance. There are lots of specialist lenders who are happy to provide loans for park homes and lodges.

Once you have found your perfect holiday park, you will be buying your property from them. They will have all the advice and contacts you need to find the right finance.

If you’re considering investing in a park home, why not explore the exciting possibility of having yours made to order by Willerby Bespoke? Call our friendly, expert team today on 01482 707844.