Benefits of investing in a mobile home
From a buying perspective, investment in a mobile home is somewhat limiting, since mobile homes do need regular maintenance, and even with this element of care don’t sustain their value. However, there are many ways in which a mobile home can prove to be an investment if approached from the right stance. Taking into account the following criteria will help greatly in finding the true investment value of a mobile home.
*Location.
*Rental income
*Maintenance costs
*Tax implications
*Advertising
LOCATION
Location is first and foremost on the list for gaining the full potential from a mobile home. These homes, used as an investment property, can give great and regular income if they are located in a region with a high number of peak period holiday weeks. Here, seasons offer different things, and while coastal regions may encourage Summer traffic, looking for a location that offers something to travellers all the year round is a better bet. For example, while a sunny environment is extremely good for summer lets, if it doesn’t have much more than sun to offer, then the investment is limited.
Taking a look at regions and locations, what a potential investor will find is that certain areas cater for those people that want to enjoy peace and quiet, discovery, nature, as well as winter sports, scenery and also those natural Summer attractions. By choosing a location that offers both Winter and Summer interests, the potential investor is making the most of their investment.
While many holiday parks close during Summer months, in areas where there are natural attractions that attract tourists all the year around, these areas really do make good financial sense, since what they offer is not limited by seasonal shortcomings.
Rental Income.
Having decided that a mobile home is a possibility as an investment, looking into which kind of mobile home would cater for the potential holidaymakers that you are trying to attract does play a huge part in success or failure. If you are aiming at family markets, then you will need to buy a mobile home that has sufficient space for the family to feel comfortable. A mobile home is cheaper than investing in a house, and perhaps those limited by financial constraints can invest in a mobile home and get the best of both worlds, having their home elsewhere, but also having letting potential in a holiday area.
If renting to specific numbers of people, it really is wise to do your homework, making sure that the site rules don’t prohibit certain people, or are in any way prohibitive on a time scale. When establishing what the rental income will be, balance this against what the mobile home will cost you on a monthly basis, together with the price of upkeep fees that you may be asked to pay a site, or staff to do clean-ups between guests.
Look at the overall income and see if it is as much as you would get if you invested the money elsewhere, because investment is really risky, and unless you are sure that the market exists for holiday lets, you may be biting off more than you can chew.
Maintenance costs.
Maintenance costs should also be deducted from the profits that you stand to make on your investment. These will include things like ensuring that the equipment in the mobile home works, repairing damage, keeping the interior up to date, providing gas bottles, and adequate facilities for the time of year that you are letting the mobile home. For example, if you are letting in the Winter, you will need to ensure that the heating within the mobile home is functional, and will have the regular service costs that ensure that the mobile home is safe.
Tax implications.
Anyone that earns money on a regular basis will also have to pay taxes upon that income. Take a look at what your taxes will be in advance, since these may come as a shock and diminish the investment more than you realized at the time of investing.
Advertising.
In order to have your mobile home rented to it’s maximum potential, advertising will be necessary. Here, the site owners may have ideas of where other owners advertise, and may even have their own scheme, although if they do, beware that this will cost you money. Advertising on the Internet is a great way forward since you reach a huge audience, and the potential is amazing. However, putting an advertisement on a site that isn’t used will get no response.
To find suitable sites for advertising to a maximum, type in search words that relate to the kind of holiday you offer, and see what advertising sites appear, as these will be the ones where people will look for holiday accommodation. Do several searches, as a potential holidaymaker and see where the searches take you, and advertise there. Look for free-ads as well, because often these are looked at a lot by users of free ad sites, although the specialized holiday sites that you find upon searching are a worthwhile investment to get clients into your mobile home.
Advertising in newspapers is somewhat limiting, and here if you wish to use newspaper advertising, ensure that the readership is the kind of client you are trying to entice geographically. Look for specialist newspapers for the same kind of holiday you offer, such as walking, hiking, special interest, skiing, etc., and remember that the money you invest in advertising has to be deducted from profit, although can be used to offset the taxes you have to pay, making it essential to keep records of every payment.
A mobile home in the right location, with the right amount of thought, can create a good all the year round investment, though will not give the same long term investment that bricks and mortar will. For those who do not have the funds for bricks and mortar, a mobile home may be the answer, though following the steps of researching, balancing costs against potential profit, advertising and promoting your holiday mobile home, will ensure that you make the most of your investment to achieve maximum yield.