Purchasing a park home can be a great way to get a return on your investment. They are often located in desirable seaside or countryside locations, and renting can provide a steady income stream.
Whether it’s investing to downsize or to provide an extra income source through renting, park homes are a popular choice. In this article, we briefly look at the top 5 things to consider before investing your money into a park home.
1. Can I live in a park home all year round?
This will depend on the terms and conditions set out by the parks. Planning permission and a licence agreement by the local authority is needed to allow all year round living. Some parks close down out of season. Always ask a solicitor to check the agreements in place before investing.
2. What exactly do I own?
Again, it is always best to get a solicitor to help with the purchase. Most park homeowners own the home but not the land it sits on. In most cases, there is an annual maintenance or service charge payable to the owner of the land, known as the park operator.
3. New park home or old?
There are many factors which contribute towards the sale price, such as location, size and features. It really depends on your budget, as new homes can range from £80,000 to £400,000, and pre-owned park homes start at £55,000.
4. Selling the home
The Mobile Homes Act 2013, prevents park operators from getting involved in the sale of the home, but they will receive 10% commission on any sale. If you are looking for park homes for sale in Gloucestershire, a starting point might be here: http://www.parkhomelife.com/our-parks/orchard-park-homes-gloucester-gloucestershire/.
5. Other fees
It is important to find out how much utilities (gas, water, electricity) are likely to cost and if there are other costs involved (e.g.service charges).
A park home can offer a great return on your investment but always seek professional advice beforehand.