In the consideration of a Caravan Park business, most investors would rather purchase an existing park than to put up a new one. Depending on your strength or personal capabilities, making such a significant decision should be carefully analyzed. If property developing is your personal passion and interest, or if you are into the field or industry of construction, then may save money doing yourself. But if you are more on the financing and less on the constructing, acquiring an existing park is a wiser choice. Aside from that, there are also other things that you should decide upon when buying a Caravan Park:
What kind of Caravan Park do you plan to invest in?
Do you plan to do the construction by yourself or hire professional workers?
Is the park located in a destination where travelers can stay for long or is it just an overnight stay?
These are the questions that you have to settle and begin the plan with. You can expect to review at least 20 Caravan parks to determine which park meets your needs. Don’t be afraid to ask the owner or real estate agent important questions to make sure you are making to right decision.
To find Caravan Parks for sale, they can be found through specialize Caravan Park brokers like www.caravanparksale.com.au or local real estate agents. Also if you come across a Caravan Park that you like, don’t be afraid to ask the owners if they would consider selling.
On one instance, a potential buyer of a caravan park was asking the banker about financing the park for its improvements or repairs. He said that one of the biggest mistakes a caravan park owner faces is the financing of the improvements or repairs of the park bought a year ago. What usually happens is that buyers of an existing park tend to overlook the need to ask the sellers about this information. In reality, sellers will not disclose such information, and the agents do not really know that. Before buying a Caravan Park for sale investigate all aspects of the business. Some examples to look out for;
The Caravan Park was built without permission.
The sewage system of the Park is given two years by the state health department for modification.
The septic system was already overused and failed last summer.
The park is flooded every spring season.
The property was zoned wrong and it was just recently when the owner learned of it.
The sewage system is no longer allowed for repairs unless a new treatment facility is built.
The local government is building a new road in the next three years and the park is set to be eliminated.
What do I do now?
There is nothing you can do once the property is bought. It is very important to check and inspect all these details when you buy an existing Caravan Park and negotiate on the price or else you will need to pay for the expenses from your own budget.
However, you can retain professional property experts who can help you inspect the park before buying the property. Although there is no guarantee that nothing will go wrong, but with their extensive inspection, you will be able to determine which parts need repairs and improvement, and that is a big help.