RV Park Investing Newsletter

It’s hard not to be excited about the amazing luck of the RV park industry to be in the right place at the right time. While suffering through the energy crisis and the economic downturn for all these years, we were apparently just waiting for the rise of the baby boom generation. Of course, we should have all seen it coming years ago. But the future was hard to visualize through all the distractions of the American economic crisis. In the end, it is the 10,000 baby boomers per day that are retiring now and for the next 15 years that are going to fuel the greatest rally in RV park history. Of course, it doesn’t hurt that the manufacturers have found way to make RVs more attractive, have greater gas mileage, and sell at lower prices. The future is bright thanks to the baby boom generation, and despite the failed economic policies of our nation.

There are 10,000 baby boomers (those born between 1946 and 1964) retiring per day in the U.S. – and will be for the next 15 years. These folks are receiving an average social security check of $1,200 per month, as well as meager savings and pension funds in certain cases. So where can you live on $1,200 per month? For many people, the answer is an RV park. Here’s why living full time in an RV park makes complete sense for retirees.

It’s Inexpensive

If you have a budget of $1,200 per month, then you have to be frugal. And living in an RV park is very frugal, indeed. Most RV parks cost $20 per night, including all utilities. That means that you have your housing and utilities completely covered for $600 per month. That leaves you $600 for insurance, gas, food and such – which is not impossible to do.

It’s Upscale

It’s one thing to be cheap, but what makes RV parks unique is that they offer cheap living in an upscale environment. Living in a Class-C apartment in the ghetto is also cheap, but who wants to live like that? So is living in a hut in Ecuador, but is that really the kind of living you desire? RV parks offer affluent people with expensive toys, who are well-travelled, safe and respectful of their neighbors.

It’s Entertaining

The whole point to the RV park is to entertain the guest. As a result, living in an RV park is hedonistic pleasure at its best. There are normally lakes to fish, pools to swim, paths to walk, mini-golf to putt, pavilions to sit, sports to play, BBQs to eat, people to meet – non-stop fun at every turn. And that does not even include the nearby destinations.

It’s Like a Vacation 24/7

The general feel of an RV park has the excitement of being on vacation. You can’t live in an RV park and not wake up each day feeling that you’re on vacation.

You are around other seniors

You don’t have to live in an expensive retirement resort to be around your peers. Baby boomers are, by far, the largest age category of RV owners, and you will find seniors at all RV parks in abundance.

When you get bored, you can change your environment at will

One of the best things about living in an RV park is that, if you get bored or don’t like the atmosphere, you can just turn the key and move to another one. No other form of housing gives you the freedom of choice like an RV park. The lease is day-to-day, not twelve months in length. You don’t have to sell your home to move to a new locale. You just pick a new spot, and hit the highway.

Conclusion

Living in an RV park is a terrific option. As more people learn about this, it’s going to become a more common occurrence. This will, of course, bolster RV park occupancy hugely, as instead of two or four weeks a year, these same RV owners will be paying rent for 52 weeks.

Here’s a 1999 Newmar Dutchstar, which cost $170,000 when new, for sale for $39,900 on the internet. Let’s assume you just retired and have a social security payment of $1,200 per month, and a single-family house worth $100,000. You can sell your house and buy this RV, and put $60,000 cash in the bank. You can live easily on the $1,200 per month, while having the time of your life seeing America from one end to another. Can you think of a better housing option for those Golden Years? We can’t.

Will old RV parks become extinct, like this dinosaur we saw in the Cincinnati History Museum recently? Well, there’s no question that one of the big design changes in RV parks is the “pull-through” lot as opposed to the “back-in” formation. The new, larger RVs – not known for extreme rear visibility – seem to favor the concept of always moving forward and not back. However, we own both variety, and the folks that have travel trailers and fifth-wheels seem to have no problem with the concept of backing in. Maybe the reason is that most detach their vehicle from the trailer, and are well versed at backing up the unit at home for storage when not in service. We have probably equal occupancy in both types of lot designs, so we are not seeing any signs that pull-through lots are essential for survival. But there’s no question that, when evaluating RV parks for sale, pull-through lots would be much more valuable and desirable. Dinosaurs became extinct because of a sudden change to their environment. RV park designs have changed gradually, and have allowed for years of familiarity and adaptive acceptance. Of course, it would probably be a bad idea to name your older facility “Jurrasic RV Park”.

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