Are Campgrounds A Good Investment?

Money is one of the most important things in the world, without it society would collapse and the whole running of the world would have to be reshaped.

Money can be used as a form of control through fines, it can also be used as a reward via incentives such as bonuses and it literally pays for the food we eat and to keep a roof over our families heads. So when you think about it you probably want to protect your finances in the best way possible. 

One of the best ways that you can look after your money is via investment. Investment is a lot better than simply leaving all of your fortune sat in a bank and there are many reasons for this including: 

  • Inflation- The problem with leaving your money sitting in the bank is that the interest rates provided by most banks do not match the rate of inflation. This means that if you put $1000 in the bank in 2021 and leave it until 2031 when you revisit your $1000 it will be worth a lot less. Whereas if you invest your money into something such as a product, shares or a business its value should hopefully increase in line with inflation if not more so. 
  • Potential Profit- Another perk of investing your money is that you can potentially profit. For example, if you invest $1000 into gold and gold becomes worth a lot more money over the next few years when you are to sell your gold you could get $2000 back. 
  • Assets- Lets be honest having assets is a lot more beneficial than having money sitting in the bank account. For instance classic cars or diamond jewellery are a lot more exciting to own than some money in a bank account. 

How Do You Decide What To Invest In?

Congratulations on making the first step and deciding to invest your money; however, the hard part has only just begun. Next up you need to decide what to invest your money into.

There are many factors to consider when deciding to invest such as how much time you have to spend on your investment, how much knowledge you have on different fields and how much money you are looking to invest. When it comes to investing there are countless options but throughout this article we will focus on the evergrowing campground area of investment. 

What Is A Campground?

As previously mentioned before you commit to investing in anything you should make sure you have at least some knowledge on that particular industry.

Campgrounds are fields or other outdoor places which are designed to allow holiday makers and tourists the opportunity to bring their own tents, caravans or campervans and camp out. They often also have lots of extra amenities such as toilets, showers, a shop and maybe even a cafe. Generally speaking (but not always) they will be in more rural and picturesque areas. 

How Much Does Setting Up A Campground Cost?

It is easy to assume that setting up a campground isn’t very costly, afterall all that you really need is a field. It is true that it is one of the cheaper places to stay, especially when compared to hotels, however there are still plenty of costs involved. The costs involved with setting up a campground include: 

  • Land- Land itself can actually be very costly. This is especially true for flat land that could be used for camping as it needs to be in relatively good condition. When it comes to land you can either get it by buying it or renting it. However, rentals are not usually recommended for investors as you are paying off someone else’s land and get nothing for it in the long run therefore, we would recommend buying it. The cost of land also varies significantly depending on the area that you are in as some are more expensive than others. 
  • Electricity- In order to provide spaces for caravans and campervans you will also need to pay to have electricity put into your field. If there is not already electricity then this can be extremely costly. On top of this you will have to pay a large electricity bill every  month for as long as your campground is running. 
  • Toilets/Showers- Campgrounds need toilets and showers and these can actually be very costly to have put in. Not only is there the physical building work that needs doing but also the plumbing and internal work such as furnishings, painting and decorating. The more of this that you can do yourself the cheaper it will be as paying people to do things for you can add lots of extra costs on to setting up any business. 
  • Annemeties- As Well as toilets and showers you may choose to have some extras such as a shop, a cafe and washing up facilities. Although extra facilities can bring more customers and allow you to charge more ttus creating more revenue in the long run they can make start up costs greater. Just remember this is an investment. 
  • Insurance- Just like any other business, campgrounds need insurance. It is important that you pay this before you start operating or you could face massive fines. 
  • Keeping The Land Well Kept- In order to keep the land well kept you may need to get a gardner to come in with an electric lawnmower. However, having said this purchasing your own electric lawnmower could be much more cost effective.
  • Staff- Although in theory a camping ground does not need many staff you may need some to run annuities such as the shop and cafe. You may also choose to have someone else check guests in if you are busy. 

Clearly setting up a campground isn’t the cost free adventure that it is often thought to be. However, it is still relatively cheap for a business and considering the potential revenue that it could generate. Therefore, it could be a great way to invest your money depending on your circumstance.

For instance, obviously you need quite a large investment to be able to afford the land to start with but this investment will not just require money but also time so you need to weigh up how it would fit around any other commitments such as any jobs or  family. 

Pros To Investing In A Campground

  • Potential To Earn A Lot- Campgrounds provide potential to earn a lot of money as you can have several people to stay at once and you will have minimal outgoings.
  • Little Start Up Costs- The start up costs for a campground are not very big when compared to hotels or similar places. This is because there is minimal setup required. However, it is important to remember land and other amenities can still add up so you should keep track of finances. 
  • Little Running Costs- The monthly costs of running a campground are also minimal. You will have to pay for electricity and water but not necessarily other things such as the internet. 
  • Simple- It is a relatively simple and limited risk industry to get involved with especially for those just starting their business journey. 

Cons To Investing In A Campground

  • Land Prices- Land can actually be quite costly and this is something to bear in mind when deciding whether or not to invest in a campground. It is also important that you carefully consider where you buy land as this will have a big impact on how much the land will cost but also how much you can charge people to stay.
  • No Guaranteed Income- There is no guarantee that people will choose to stay at your campgrounds. This could lead to massive losses.
  • Commitment- Setting up any kind of business is one of the more time consuming forms of investment. So before you decide to invest in this way as opposed to simply investing in gold or silver, be sure that you have the time to make your business successful. 

Final Thoughts 

Deciding how to invest your money is a very important decision after all all aspects of your life are affected by how much money you have. The first decision is deciding on the type of investment you want as some such as investing in diamonds are a simple case of buy and sell.

However, if you are looking for a more exciting investment adventure with long term rewards then setting up a business could be a great idea. Campgrounds are a growing business as more and more people are choosing to stay in their home countries for holidays rather than travelling abroad.

Overall, investing in a campground is advisable for those who want to experience running a business. It can be a good investment for new investors and old investors alike. The only real thing needed is a large amount of free cash and some spare time. 

Matt Roberts
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