As recently reported in the Chronicle, the Wally Byam Caravan Club International (best known and easily identified as "the aluminum airstream campers") are in to town for their annual rally. Bozeman is fortunate enough to be the only destination to host this international rally on five different occasions. The club is estimated to bring 2,000 people and $3 to $5 million to our area in a one week period. Club members, with the average age of 60 years old, are very active and love the cool weather, the beautiful setting, and the abundance of outdoor activities found in Bozeman.
This event brings up an interesting concept of luxury RVs as a second home. While many people purchase second or multiple homes in areas they chose to vacation and spend time in, there are a growing number of people who are deciding that their second home should be mobile with a new view every day.
Manufacturers such as Prevost and Newell dominate the highest end of this market which is the $1 million+ price range. Superior technology, attention to details and interior design features makes these RVs truly an "estate on wheels". There are about 325 RVs sold in this price range on an annual basis which shows that it is a viable market segment. And although the price tag seems high, it can certainly compete with condos or homes in resort communities and also offers the versatility of choosing a new vacation destination each trip.
Certain trends are also emerging in the high-end RV market. Fractional ownership of models that range in price from $250,000 to over a million dollars is now possible with the services of delivery, pickup, repair/maintenance, storage/cleaning, and roadside assistance coming standard. This type of RV arrangement can fit the lifestyles of those who want the luxuries such as large plasma TVs, fine leather, top of the line linens, and Italian marble flooring for a few weeks of the year without tying up a large amount of capital. Shares can range from a few weeks to half of a year of annual usage depending on how much time is desired each year.
Another concept that goes hand in hand with the high end RVs is Luxury RV resorts that go above and beyond basic hook-up features. Some amenities include spas, heated swimming pools, boat rentals, golf courses, tennis courts, and much more. A one week stay at many of these resorts can cost about the same as one night at a traditional resort hotel, further adding to the appeal of this type of lifestyle. Some of the most opulent of these gated RV resorts are located in Palm Springs, CA , Hilton Head, SC, and Naples , FL.
Financing an RV as a second home involves the same weighing of options as the purchase of a traditional second home. Self-financing by "borrowing from yourself" is one choice to consider. Bank financing is of course a popular option with different loan programs available depending on how much you are willing to put forth as a down payment (10-20% down for a new vehicle is the norm) and length of the loan (maturation generally runs 10-15 years). Used RV loans usually require a larger down payment and shorter loan term. One additional point of interest in this area is using a Second Home tax deduction on the loan interest when applicable. To qualify, the RV must simply meet the criteria of a second home which includes being equipped for sleeping, living, bathing, food preparation, and dining activities which are all standard features on any RV.
Wally Byam's simple philosophy of showing people that they could essentially bring "home" with them as they traveled near or far appears to still be going strong. The ability to find out what's over the next hill while feeling at home in the process is a timeless feeling.
Robyn Erlenbush is owner of ERA Landmark Real Estate (with offices in Bozeman, Big Sky, Livingston and Clyde Park) and Intermountain Property Management. She can be reached at robyn@eralandmark.com.
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