1. LIFESTYLE CARAVAN PARKS
This would be the most sought after or requested Caravan Park, however most parks are 365 days a year and therefore the lifestyle is only in the eye of the beholder.
There are very few parks throughout Australia that have any close down period and in fact, the only ones I am aware of are four Caravan Parks on Lake Eppalock that are closed by Government regulation for 6 weeks per annum. It is normally in this time that the Vendors bring their maintenance up to date and if there is a partnership, then one partner will usually
take a holiday. Lifestyle Caravan Parks are mostly seasonal and as they are the most sought after, would probably provide you with the smallest return on your investment.
2. COMMERCIAL CARAVAN PARKS
These parks are open 52 weeks or 365 days per year and are what I would call the normal type of Caravan Park. They are located anywhere in Australia be it inland, coast or rivers, and will normally have a kiosk of some sort. They are mostly operated by a husband and wife partnership with some support staff for cleaning, lawn mowing, or relief receptionist etc. If there were any such thing, these would be the average type of Caravan Park.
The income in a Commercial park comes from a mixture of permanents, annuals, holiday makers, transit, laundry, phone, kiosk etc and as mentioned above, would be what you would call the average type of Caravan Park.
3. HARD WORK CARAVAN PARKS
This category is the least sought after by first time buyers as they are normally located in an inner city or fringe area and have a very large percentage of permanents.
The advantages of this type of park are the guaranteed regular income and they normally have a very busy kiosk. They tend to be operated by people who have sold lifestyle parks and bought this style of Caravan Park to run under management, as they are then semi-retired or have more than one park under their control.
The rewards are higher but the work is harder because you are looking after a lot of permanents. These parks can be more difficult to run and are not perceived to be as nice as the Commercial or the Lifestyle Caravan Parks.
Dale Wood
Call me if you want more information on 0417 811 035
Dale Wood, Park Australia, South Australia.
Welcome to the second posting in this series, the price you have to pay for a Caravan Park is most importnat to all concerned and should not be taken lightly.
Many people have said that;
“Money is not a problem, it all depends on the Caravan Park. I can buy whatever I want”.
Well it is important to note that prices vary considerably and currently our price range varies from a $130,000 Leasehold to an $8 million Freehold.
Now I’m not sure how friendly your Bank Manager is, however if you’re wishing to invest say $200,000 – $300,000 I’m sure you’re Bank Manager would not be willing to lend you the other $7.8 million to top up to a Freehold.
Often people will go to the bank and say, “look, I’m considering buying a Caravan Park, what can I do?” I find that these days the Bank Manager will originally say “well that will be OK we will lend you the money”. However, the moment you go and say you have selected a park in whatever location you have chosen, the problems start.
Your Bank Manager will want valuations, he will need to assess your ability to repay, and he will want to know what experience you have, how much money you are putting in, and what your commitment to the industry is. There will also be many other questions.
It is at this time you should discuss with your Broker the amount of money you are prepared to invest in a Caravan Park, and at that stage the Broker will then know:
What the availability of finance is;
Who has the money at this stage;
How much the purchaser can borrow;
What the Bank’s lending margins are;
What the expectations of the profits in the Parks that you are looking for are; and more importantly,
He will be able to give you the confidence to go ahead and look at and eventually purchase a Caravan Park.
S e l e c t i n g a P a r k
It is suffice to say that on many occasions we have had people go to their local branch of any Bank, be given a verbal OK before selecting a park, and then subsequently have their finance knocked back. On the other hand, an experienced Accountant or Solicitor completing the same finance application, lodging that with the same Bank but at a different branch (where the people have experience in the industry), will often have the loan approved.
So do not necessarily rely on your local Bank Manager, he often does not have the discretion or experience in this industry to say yes or no to your application.
Listen to your Broker and listen to your Accountant, but make sure they too are experienced before you actually head off looking to borrow money.
If you want to know more about buying a Caravan Park, call our office at 08 8364 2655 or visit our web site at www.parkaustralia.com.au
Probably the very first question 90% of people who enquire about the purchase of a Caravan Park ask is “Where is it?”
It would be reasonable to suggest that most people say:
“Oh for my first Caravan Park I’d like a park preferably on the coast. Perhaps the Yorke Peninsula or the South Coast of New South Wales. Perhaps the Queensland coast, but I’d certainly like to look at a coastal Caravan Park.
What have you got in that area? – If you have nothing in that area what have you got along perhaps the River Murray or some other major river?”
Generally people have an expectation of being able to buy the particular park they fell in love with when they were last on holidays, and have a picture in their mind as to the type of park they want.
It is important to understand that there are not hundreds of Caravan Parks on the market at any given time and that the type of park a person can look at is restricted purely by the price they are prepared to pay.
If you wish to buy a Caravan Park I believe you should look at all the options that are in your price range, be that on the coast, on the river, inland, or interstate – no matter where consider all the options. Narrow it down to maybe 3, 4, or 5 that you would like to look at and arrange to inspect those Caravan Parks.
An experienced Broker will be able to tailor the availability of a park to your price needs.
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This is the first of a series of Posts which will outline the various considerations for buying a caravan park. Written by Dale Wood, these articles form a booklet used at Caravan Park seminars in South Australia. Keep watching your social networks for the future postings or RSS this Blog so that you don’t miss them.
The planning and design details involved in the construction or reshaping of a Caravan Park are more involved today than in years past. It is a complex issue when considering designing a Caravan Park for today’s users and involves specific design and understanding of issues such as socio economic areas where the Caravan Park is situated, which in itself adds many more varied considerations.
Modern Caravan Parks can be likened to suburban subdivisions and the planning takes in many similar conditions. These include site area, lot size, floor space to lot area ratios, setbacks, road design, utilities and services, storm water design, vegetation, solar access, audio and visual privacy, building materials, flood liable land and bush fire hazards.
Caravan Park Design/Planning
Over the years, Caravan Parks have evolved in their growth and as such have seen a varied shape within Caravan Parks and now caravan park owners are experiencing problems such as…..
· Not enough power available (Larger current demanded by users)
· Bigger Vans (RV’s etc)
· Larger sites required
· What does the future hold
Larger RV’s need to be considered
The key factor of any design is to provide a high quality of living and to create an enjoyable environment for both permanent and casual occupants. This was achieved by……
Reviewing the current Caravan Park layout
Reviewing the current operation of the Caravan Park’s
· Turnover
· Profit Controls
· Management
· Maintenance
· Expenses
Reviewing the need of tourism & permanent accommodation for the area
The plan will look at all Green issues and cutting costs in relation to….
· Maintenance of Caravan Parks
· Remote Caravan Parks
· Flora/Fauna
· Sola v Gas/Electricity
· Government Rebates
· Type of plant & equipment
As we mention above, most caravan parks evolve through time rather than planned with future changes being considered. A planned Caravan Park site will offer greater asset value for the Caravan park owner.
First considerations when Park Australia commence Caravan Park Planning include….
· A review of the current Caravan Park layout
· A review of the current operation of the Caravan Park including
Turnover
Profit Centres
Management
Maintenance
If you are thinking of a re-design of your Caravan Park, talk to the experts – Park Planning is a division of Park Australia and is the leading design consultants for Caravan Park Planning, either upgarding or building from scratch.
Talk to the Guru, Dale Wood, you can get him on 0417 811 035 or visit our web site at www.parkplanning.com.au
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The planning and design details involved in the construction or reshaping of a Caravan Park are more involved today than in years past. It is a complex issue when considering designing a Caravan Park for today’s users and involves specific design and understanding of issues such as socio economic areas where the Caravan Park is situated, which in itself adds many more varied considerations.
