Agree with everything Aviator has posted.

One thing we suggest to clients after they have done their business plan is to stress test it. In particular, what happens if you only make half the money you expect and/or it takes twice as long to materialize? If this happens (and it is not in the slightest an unrealistic scenario) what will you do? Do you have a plan in place to cope?

A lot of sound advice out there. Given the state of the economy at this time....and dare I say for the foreseeable future....resorts/camps are not the safest of investments. Lots of resorts on the market at this time...mainly because the current owners are struggling to make ends meet...particularly those that depend on US tourism, like fishing resorts...Have friends who have/had resorts and prognosis is not good for the foreseeable future.

Best of luck

My builder friend has just quoted for and started to construct a workshop/garage for a neighbour. It'll be $80 s/ft for the build. A modest 2000sq/ft log home with 3 bedrooms is going to be in the order of $150 sq/ft upwards. You can do the math, as they say.

I agree. I wouldn't say don't do it as I don't know enough about the industry.

I would ask, for particular business, why if it is profitable are they selling it ? If it is 'potentially' profitable, how much money needs ploughing into it ? Would that investment make it more valuable in the future ? Is there demand existing and how do you create it in the future (costs) ?

Being your own boss is attractive, but it comes with it's own headaches I guess.

Succession is often a reason for sale.
Parents built up the business and the children don't want to run it. It might involve hard work and they wouldn't want that.
This is happening in the Okanagan Valley in B.C. Farms and wineries are changing hands for that very reason. My neighbor in Arizona is from The Valley and is doing just that. His offspring don't want the work involved. Sad really.

OH would continue in his current work, there will plenty there to pay the mortgage/costs, any campground income would be a bonus.

Thanks for that.

The owners are retiring, it's not being sold as a business although the approx income generated is quoted in the listing. We believe and we are checking that the list price is for the land, not the business. We have also been told that acreages are going for 40% less than their listings around here, so it could be worth an insultingly low ball offer, but as the owners have carved out a small acreage right next to the property, I guess they'll keep going - who knows.

If we don't do this now, we will be our own bosses when we move Province, there will be not much point in moving otherwise.

OK. I didn't realise the issue with the winters was OH related.

Sounds like you have a plan. I wish you all the best

Thanks

It doesn't take a lot of maintenance in the winter. Summer equires collecting money, clearing up, emptying trash, and general cleanup - again totally doable with a routine. Do they have small firepits and camp tables? I would definately say install toilets - all you need to do is get them emptied once a week or however - and they are not an expensive build.

Sis in law picked up an old camp kitchen for nothing (ok they had to truck it in and plonk it in place) but thats a really nice thing a they have started to attract family reunions / wedding etc to their site.

Its totally doable and if you can even come close to making your dreams come true i'd say go for it

I'd echo Aviator and Jonboy - IF you are seriously considering this, then take the time to draw up a business plan (or seek help to do so) and get it assessed by someone else you trust who is not emotionally connected with the opportunity. (Forgive me, but you come across as very much being driven by the emotions and I think need to consider the realities equally as much).

One point I'd make on OH's dream garage. Don't underestimate the costs of heating the place in the winter. I have a modest 30 x 24ft garage with it's own oil furnace and it ain't cheap to heat on top of the house. Well, it is now cos the furnace has gone tits up but that's another story...

I may come across as a bit ditzy but that's probably because my head is whirling away, trying to get everything in some sort of order, so I may not necessarily make a whole lot of sense. Everyone seems to be focusing on the campground part of this whole thing and not the acreage and building a new home thing - which is the bit that actually concerns me more.

Whether or not we do this now or sometime in the future, OH will have a huge shop to work in or two or three smaller ones or two medium sized ones with a covered lean too type thing, it's what is needed to make living in Canada (where ever we end up) work for us, the heating costs will just go in the same pile as the insurance and plate changing costs, a necessary evil for the passion.

Anyway I will take this opportunity to thank EVERYONE who has contributed to this thread, it has all helped, I think the next thing we should do is maybe get some sort of contractor out there and get some ball park figures going on...Of course if a bidding card gets waved on Wednesday at the farm auction while I'm not there, this could all be a moot point

Talk to the local municipality and find out the current zoning of the property and what it allows you to do/not do. It may be that the current zoning does not allow for a house (on the other hand it might). Or you might have to apply to subdivide and/or rezone some of the land and this may or may not be allowed depending on if the landowner has already subdivided off some of the land. Rural municipalities can sometimes get a bit iffy these days about subdividing up larger plots of land into smaller pieces.

The rules are different in every municipality so check with the municipality so you get the information first hand (as opposed to second hand from the realtor). Also they may (or may not depending on how big they are) have an economic development person you could have a chat to about setting up a business - the rural councils like to encourage suitable businesses as it diversifies their tax base.

Sorry, waffling on a bit now.

Best of luck with where you go from here!
Flossie

Well, here is an update!

OH went to the Farm auction today, I still couldn't figure out if he was really serious about bidding on the property, it turns out he was As I wasn't with him and we hadn't discussed what he could bid up to, he stopped at $460k, him and the 'winner' had been bidding up in $500 intervals since $420k, with OH thinking he had won on a couple of occasions. He is a little disappointed and is regretting not going higher as he realised that the information that they were given before bidding 'could have' potentially made us extremely wealthy - everything happens for a reason!

As for the campground we both independently came to the same decision for completely different reasons - it's a no go for us, not even for cheap. OH reason - he doesn't like the way the Acreage has been divided already and you can only divide an acreage once in Alberta, my reason - not comfortable at this time in building a brand new house, especially with everything going on with my Mum.

Also we both think we have moved on from the 'Campground Dream', which is something I have commented on in the past. We are going to however look at a few small acreages in the local area for the interim before our BIG move.

Thanks all for your input.