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Thursday, 21 November 2019
Agent Resource Center
Agent Resource Center

Campervans & Motorhomes – The Ultimate Side Hustle for Real Estate Investors

Written by Posted On Friday, 09 August 2019 03:46

A campervan is not considered to be in the same bracket real estate, especially when talked about in terms of investment. A campervan is a vehicle, and every other vehicle depreciates in value as soon as it rolls off the sales lot, so how can it even be considered an investment?

Currently the market is shifting, campervans are becoming a trend, a trend that’s not going away. There is plenty of evidence to suggest that this re-found love of the traditional holiday vehicle is not just returning but is here to stay. This sway in consumer habits means that both motorhomes and campervans alike can be used to make money in a similar way to traditional real estate ventures.

Just look at the data from Google Trends for the term ‘campervans’. It speaks for itself. More people than ever are looking to buy campervans and motorhomes, not just as a way of having cheap holidays, but to live and retire in.

The real benefit is the simplicity and ease of conducting a buy-to-let campervan or motorhome scheme. You don’t have to invest any time in finding potential clients or screening them. All the time consuming and costly procedures that you find in your other day-to-day work aren’t really applied to renting out a camper.

So how does it work and why isn’t everybody doing it?

 

Understand the Market - Find the Most Popular Models

The thing you must understand is that while campervan companies are currently killing it, until recently there hasn’t been much appeal for individuals to rent them out. Until recently there just hasn’t been enough demand for campervan rentals, but that has now changed and has become easier thanks to companies that will act as a third-party go-between for renter and owner.

However, not every model and type of campervan will turn you a profit. Just like real estate you will make more money if you think strategically. While a current model that is seeing huge success is the NV200 Nissan camper car, it is a smaller camper car designed for just one or two people. Larger models designed for families will offer up larger profit margins.

Your first buy will typically take more research as you start to understand where exactly the money can be found. The huge advantage that campervans offer is that even if you make a mistake and discover the rental demand for your camper isn’t as expected, even in a market slump, campervans hold their value. It is also low risk because it won’t take as much time or effort to sell on, if you are strapped for funding and need to find a quick source of cash, then liquidating your investment can be fast and straight forward.

Like with every investment you should have a solid exit strategy. That’s why it’s essential you understand when the markets peaks and troughs are as well as which are the best campervans to invest in.

 

 The Cons

 Okay, so what’s the catch? Well the big one is that if you are using it as a side hustle, then the times when it will need your most attention are probably when you will be busiest. The market highs coincide with those in real estate. It sadly isn’t a side gig that you can run during the down times of the property market, because there will also be lower demand for campervans in the same period.

The amount of profit that can be gained from campervans is limited. If you are used to dealing with investments that provide large margins, this might not be for you. Buy-to-let campervan investing is just a way that you can help to balance a portfolio, it will sadly never be your main source of income. It also shouldn’t be. Running multiple buy-to-let schemes on campervans full-time is not advisable.

The state of the current market means that in a sudden decline in interest, you could well be stuck with a fleet of campervans. While you will be able to shift them faster than a house, the overheads for keeping them safe and clean can become costly. You would also be competing against established campervan brands and companies, all for minimum profit.

Overall, the big catch is that this isn’t scalable. A fantastic side hustle for anyone with skills in sales and investment, looking to make a small amount of money quickly and easily on the side, but it isn’t something that should over be competing with your full time career.

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Josiah Harris

A journalist who specialises in following and analysing real estate market trends. Josiah creates detailed reports on the industry which are used by highly respected news publications. 

 

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