There’s no doubt that the cost of living is on the rise in the UK, with almost 90% of all households having reported an increase in the cost of fuel, food and borrowing during the last month.
What’s more, some 17% of this number had turned to loans or credit card borrowing to make ends meet, while around a quarter was struggling to pay their bills on a recurring basis.
With this in mind, the investment may offer an opportunity to outperform rising inflation and achieve better financial outcomes. But is owning a caravan a particularly rewarding pastime? Here’s why we think it is!
#1. Static Caravans are Particularly Cost-Effective Holiday Homes
When we think of holiday homes, our minds are often drawn to lavish villas on the sun-kissed coast of Portugal luxury, apartments in Italy or Turkey.
However, this type of holiday home comes at a premium, and one that’s simply beyond the reach of most buyers in the current economic climate.
Your dream of owning a holiday home can still come true, however, in the form of a static caravan. Make no mistake; this is a much cheaper and more cost-effective option, and one that’s likely to benefit from increased demand as people look to seek out more affordable holidays.
You can buy static caravans here for as little as £16,995, creating a relatively low-cost that enables you to recoup your investment quickly.
#2. They May Offer Some Resale Value (But Not for Long)
If we accept that demand for caravan holidays is likely to increase amid the cost-of-living crisis, there’s no doubt that buying a unit in the current market can lead to optimal gains in the near and medium-term.
But what about the longer-term? Well, it’s known that the average caravan depreciates in value at a rate of around 15% per annum, and in most instances, it’s likely to have lost much of its resale value within a decade.
However, some caravans hold their value much better than others, so doing your due diligence and identifying the best possible models will help to optimise your returns.
We’d also recommend having a plan for reselling your caravan, so you can maximise its yield in real-time before cashing in before it loses too much value.
#3. You Can Cut the Cost of Flights and Accommodation
We’ve already touched on how caravans offer access to low-cost holidays, but you should note the impact that this has on negating the need to travel overseas. And the UK has plenty of remarkable places to visit right on our doorstep.
Just imagine the amount of money that you can save on flights and accommodation costs over time, with these long-term savings capable of delivering additional disposable income that can be deployed elsewhere.
By eliminating these costs and boosting your disposable income levels in this way, you can further optimise your caravan investment without compromising on your ability to book regular holidays and weekend trips.