Since the Brexit vote, holiday and caravan parks have experienced a boost in business.
The low exchange rate has meant that many people are staying in Britain for their holidays as foreign destinations are usually more expensive. International visitors benefit from the weak pound and are attracted by lower prices for their British holidays.
An April 2017 Scotsman.com article mentions that the Bunroy Park in the Scottish Spean Valley was recently sold for £895,000. While that price may seem expensive, it did buy a nine-acre caravan and camping site and a holiday lodge.
There are development opportunities for holiday parks. ‘Glamping’, or luxury camping is popular using semi-permanent tents that can be rented out at premium prices.
Running a holiday park is a big commitment and can be difficult, but good profits can be made. The aforementioned Scotsman article also mentions David Gracie, who bought a holiday park on the Isle of Mull for £895,000 and now owns a site with a net profit of £93,000 per year. Gracie said:
“It is an exceptional business in great condition.”
Though the business is seasonal, he also manufactures environmentally friendly tumble dryers and this business provides winter employment.
There are specialist lenders who can arrange commercial mortgages and other loan products to finance the purchase of holiday parks. A broker can find the best interest rates for these loans.
Owning a holiday park may not be suitable for many investors, but good profits are being made by investors in this market sector.
