If you are interested in becoming a Caravan Park business owner in Queensland, then you may be wondering where to start. Investing in business is a big step and involves a high level of risk. It’s the potential investor’s responsibility to do their due diligence and make sure that the Caravan Park is a good purchase and the right fit for their circumstances.
Looking at the numbers
Start by evaluating as many Caravan Parks businesses for sale as possible. Get familiar with looking at income, expenses and general business performance. You should have analysed how much money you can borrow and it’s prudent to even get finance preapproved. At this moment the Australian banks are being very conservative with their business lending. For Freehold Going Concern Caravan Parks, banks are tending to lend a maximum of a 50% LVR and for a Leasehold business the LVR can be restrict their lending to 35% LVR.
Visiting Caravan Parks
Visit some Caravan Parks in your local area to get familiar with Caravan Park operations. If you are interested in a Caravan Park for Sale Queensland then best to stay at some nice parks in Queensland and some not so nice ones. Try to stay in either a Caravan or a Cabin to see how modern the furnishings are and what it feels like to be a Caravan Park guest. Speak to the managers to understand their operations and start evaluating the areas that you think you could improve if you owned the Caravan Park yourself.
Make sure you work out what the owner’s motivation is to get out. Most top performing Caravan Parks don’t sell for their Caravan parks unless the owners need to retire and there is no succession plan within the family. Therefore a lot of Caravan Parks that are up for sale have an issue that the owners are struggling with. The problem could be occupancy level, customer experience, marketing or cash flow. The issue may be difficult for them but for the potential investor the problem may be easy to fix. You can also structure the transaction to benefit both the buyer and the seller.
If you are interested in a Caravan Park for Sale in Queensland and looking for the best deal, these areas are a great starting point to make the best business decision.