Finance for park cabins
Park cabin finance
Cabins built in the factory, funded stage by stage.
Woolong Capital finances factory-built cabins for holiday and residential parks. Your company puts in 20% of the contract price, Woolong pays your builder in 5 stages as an independent quantity surveyor certifies each one, and at handover the facility becomes a principal and interest loan of up to 10 years.
At a glance
Proposed terms, indicative and subject to credit assessment.
Who borrows
An Australian company, or a super fund's company trustee, that owns the home and rents it out
The site
A park lease or licence that runs at least as long as the loan, with a site deed signed by the park owner
Your equity
20% of the contract price or more, paid before the first draw
Loan size
70% of the security or less
The build
Up to 6 months in 5 certified draws, with interest added to the facility
Repayments
Monthly principal and interest for up to 10 years from handover
How a park cabin is funded
Your cabin is built in your builder's factory while the park readies its site. An independent quantity surveyor checks each of the 5 stages against the plans and the build schedule, and the draw goes straight to your builder. Title to the stage passes to your company the same day.
The finished cabin is delivered, set on screw piles and plugged into the park's services, with nothing cast in. It stays movable for its whole life, which is what lets it stand as security on land your company leases.
While the factory builds, interest is added to the facility, so there is nothing to pay. Repayments begin at handover, once the cabin is ready to earn.
Why cabins need their own finance
Park cabins sit outside most home lending. Savings.com.au reports that most banks won't lend on properties under 40 square metres, and that cabins are often treated as depreciating assets, like vehicles or caravans.
Modular Build Finance is made for them. The cabin is security in its own right, valued at what it would sell for in its next home, and the loan runs up to 10 years from handover.
What the park signs
A cabin on a leased or licensed site needs the park owner on board from the start. The site deed is a short agreement between the park owner, your company and Woolong.
- The lease or licence runs at least as long as the loan
- The cabin stays your company's property, and stays removable
- The park owner and any mortgagee of the park's land both sign
How the loan is sized
On a leased site the cabin counts at its re-sited value: what it would sell for in its next home, after the cost of moving it. Equity in a property a director owns makes up the rest of the security, and the loan stays at 70% of the security or less.
| Item | Amount |
|---|---|
| Contract price | $525,000 |
| Your equity, 20% | $105,000 |
| Facility | $420,000 |
| Re-sited value, taken at 65% of the contract price | $341,250 |
| Equity in a director's property | $258,750 |
| Total security | $600,000 |
| Loan to security | 70% |
Sample figures. An independent valuer reports your cabin's values at the start and every 2 years. Every facility carries the same 5 pieces of security, all in place before the first draw. They are listed with the full terms.
Questions people ask
Can a company finance a cabin in a holiday park?
Yes. Woolong Capital finances factory-built cabins in holiday and residential parks for Australian companies and super fund company trustees, when the park lease or licence runs at least as long as the loan and the park owner signs a site deed.
Does my company need to own the park land?
No. On a site your company leases or licenses, the cabin itself is the main security, registered on the Personal Property Securities Register before delivery, together with a mortgage over property a director owns.
Who builds the cabin?
A modular builder on Woolong's panel, or another builder once Woolong approves them. The builder signs a side deed with Woolong and is paid direct for each certified stage.
What happens to the rent?
Rent from guests or tenants is paid to your company. Woolong redirects it only after a default.
Sources
- Savings.com.au, Should you buy an onsite cabin in a caravan park?, 4 February 2025
Got a park in mind?
Send us the site and your builder's plans, and we'll shape a facility around your cabins.