How to Become a Grey Nomad: A Guide to the Open Road

The call of the open road resonates strongly with retirees across Australia, and over the past decade, scores of older Australians have given up a settled existence to embrace the lifestyle of a grey nomad. The term “grey nomad” has come to define a growing segment of adventurers who, in their retirement years, choose to explore this vast country at their own pace.

In this article, we’ll aim to demystify the journey to becoming a grey nomad and outline the key steps you need to take, from preparation and planning to financing your mobile abode with options from Credit One.

Understanding the Grey Nomad Lifestyle

The grey nomad lifestyle is a testament to the spirit of adventure that doesn’t fade with age. Typically over the age of 55, grey nomads often maintain a home base but spend significant portions of the year exploring Australia in caravans or camper trailers. This lifestyle allows for an exploration of the country’s most secluded spots, escaping the cold winter or crowded cities, all at one’s own pace.

The Appeal of the Open Road

Becoming a grey nomad is more than a change in scenery; it’s a lifestyle shift. Embracing this way of life means finding joy in the journey as much as the destination. The freedom to wake up to new vistas, meet like-minded travellers, and discover the corners of Australia you said you’d always get to but never did.

Transitioning to a Nomadic Life

Transitioning from a full-time work life to retirement and then to a life on the road requires thoughtful planning. Many find that downsizing their permanent residence or moving into a retirement community serves as a practical financial strategy and a way to simplify life before taking to the road. This step often involves selling a family home and opting for something smaller, or even renting, to free up funds and reduce maintenance worries while out on the road.

Embracing the Journey with the Right Companion

While some grey nomads will travel seasonally for a few weeks or months at a time, many choose to stay on the road year-round. Whatever your travel style, your choice of vehicle is one of the most important steps on the way to becoming a grey nomad, and there are three broad options to choose from.

Motorhomes

Motorhomes are one of the most popular options for grey nomads, offering a self-contained, self-sufficient home and mode of transport in one vehicle. Motorhomes can vary in size, ranging anywhere from 6-10m in length, and featuring kitchens, living areas, bedrooms and ensuite bathrooms.

Although motorhomes give you the option to free camp in remote areas, their lack of off-road ability will stop you from reaching the truly remote corners of the country, with your travel restricted to sealed or gravelled roads, and your stays at caravan parks and campsites.

It is also worth considering that larger motorhomes will require a different licence class in order to drive them, such as a light rigid (LR) or medium rigid (MR) licence.

Caravans

Although caravans require a tow vehicle to take on the road, there is a far greater range of options available to you, both in terms of size, capability, and level of finish. If you’re planning on becoming a grey nomad, you will generally want a caravan that is at least 16ft long and has an ensuite bathroom and full-sized kitchen.

Beyond that, however, the type of caravan you choose is entirely up to how you want to travel. Do you want a luxury blacktop cruiser, a lightweight semi off-road model, or a full off-road caravan that you can take into the bush for a week at a time? Prices vary depending on the size, build quality and features of a caravan, but generally work out cheaper than an equivalent sized motorhome, even once you factor in the cost of a vehicle.

Remember, your choice of caravan determines the travel you’ll be able to do: just as you don’t need off-road suspension to spend your nights at caravan parks, you don’t want to be taking a luxury cruiser up to Cape York. Think about where you want to visit and choose your caravan accordingly.

If you’re just beginning your journey and are new to caravans, we recommend browsing the range of caravans for sale on Only Vans to help get an idea of what’s out there.

Camper Trailers

A camper trailer is a lightweight option that needs to be set up and packed down at each campsite and is generally intended for off-road use. In terms of their amenities and features, camper trailers are spartan compared to caravans and motorhomes and resemble a large tent on wheels.

Camper trailers are a fantastic choice for those who want to push the limits of their travel in places like Far North Queensland and the interior of Western Australia and don’t mind living a bit closer to the earth. Basically, if you want to cross the Gibson or Simpson Desert, you’ll want to take a camper trailer.

While bare-bones camper trailers can be found cheaply, the upper end of the market can cost as much as a large caravan, so be sure to consider just how much time you’ll be spending in the back of beyond.

Preparing for the Road Ahead

Plan Meticulously

While spontaneity is a cherished aspect of the grey nomad lifestyle, comprehensive planning ensures a smooth transition and enjoyable travels. This includes mapping out potential routes, understanding the types of terrains you’ll encounter, and preparing for various weather conditions.

Many grey nomads follow a well-established route and timetable that sees them in the north of the country during winter, and in the south during summer. When and where you travel is up to you, but if you can avoid sweltering your way through a summer in the Top End, we’d recommend it.

Planning also means being ready for the practical aspects of life on the road, such as changing tyres, managing health and safety, and ensuring you have the necessary skills for these tasks.

The Importance of Staying Connected

Contrary to what might be expected, embracing van life doesn’t mean you have to give up on modern conveniences like the internet. Staying connected is crucial for safety, staying in touch with loved ones, and accessing essential services and information, such as local news and weather warnings.

Luckily, reliable cell phone service and the advent of Starlink means you never really have to worry about being completely out of reach – unless you want to be. Of course, if you’re going to be travelling deep into the Outback, it’s recommended to take several forms of communication, such as a GPS or EPIRB, so you always have a way of getting help in the event of an emergency.

Prioritising Safety and Health

Safety on the road extends beyond vehicle maintenance; it encompasses personal health and preparedness for medical emergencies. This means having a well-stocked first-aid kit, knowing the locations of medical facilities along your planned route, and taking precautions to ensure your ongoing health and well-being.

Financing Your Grey Nomad Dream with Credit One

With the upfront cost of a vehicle plus the ongoing costs of sustaining your life on the road, becoming a grey nomad can seem like a daunting prospect. But embarking on this adventure doesn’t have to strain your retirement savings. Credit One offers a variety of financing options to help make your dream a reality without compromising your financial security.

Secured Caravan Loan

A secured caravan loan is an excellent starting point for aspiring grey nomads looking to purchase their home on wheels. This financing option is characterised by its straightforwardness, where the caravan itself serves as collateral for the loan.

One of the main benefits of this type of loan is the potential for lower interest rates compared to unsecured loans, as the lender has the security of the caravan to mitigate the risk of the loan. Once the loan is fully repaid, you gain full title and ownership of the caravan, making this a direct path to owning your dream caravan.

This option is ideal for individuals looking for a simple and secure way to finance their caravan purchase, offering peace of mind with fixed repayment schedules that can be tailored to fit personal financial situations.

Asset Lease

An asset lease offers a flexible financing option, particularly appealing to those who may not want to commit immediately to ownership or are looking to purchase a caravan through their business. The lender purchases the caravan on your behalf and leases it back to you for a predetermined term at a fixed monthly rate.

This arrangement allows for predictable budgeting and financial planning, with the added flexibility of several options at the lease’s end: taking ownership of the caravan, selling it, or refinancing the residual value to continue the lease. Asset leases are popular for their financial predictability and the option to keep monthly costs lower, as you’re only paying for the caravan’s use rather than its full purchase price upfront.

Commercial Hire Purchase

A commercial hire purchase closely resembles an asset lease but is particularly suited to businesses that prefer to eventually own the caravan outright. The lender buys the caravan and leases it to your business at a fixed monthly cost. When the lease term concludes, your business can take ownership after paying the final instalment, which covers the residual value and any interest charges.

This option offers tax and cash flow advantages, making it a compelling choice for businesses looking for a balance between immediate use and future ownership. It allows for the effective planning of finances, with the benefit of claiming tax deductions on the lease payments under certain conditions.

Start Your Journey to Becoming a Grey Nomad with Credit One

Becoming a grey nomad is a rewarding way to explore Australia’s vast landscapes and enjoy retirement to the fullest. With careful planning, the right vehicle, and the appropriate financial strategy, including the tailored solutions offered by Credit One, the dream of hitting the road and embracing the freedom of the grey nomad lifestyle can easily become a reality.

If you’ve got your eye on a vehicle and are wondering what it will cost to take the next big step, use our caravan loan calculator to find out just how affordable financing can be. And if you’re still considering what to get, explore the range of caravans, motorhomes and camper trailers for sale at Only Vans and find your dream model today.