Serial renovators Alice and Caleb Pearson have taken a hit on their toughest project to date after trading in their small two-berth retro caravan for a slightly larger model.

The winners of The Block season two started renovating their 12ft Zephyr caravan about this time last year expecting it to take one month and cost about $3000.

Instead, the budget and timeframe blew out when they ripped off wallpaper and discovered the walls and some of the frames were rotten.

The couple, who have four children, finished the ambitious project just in time to take it on their Christmas holiday last year, but admitted it was a squeeze fitting all of them in the small caravan and tiny awning.

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With summer fast approaching again, they set out looking for another retro caravan that was big enough for them all to sleep inside.

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They finally found a 15ft 1970s Anglo Galaxy caravan in Whangarei with two fold-down bunks over the dining room area and a pullout bed at the end for $11,500 that was the exact layout they had been wanting.

The Pearsons then sold their renovated 1980s Zephyr caravan for $14,000 to a couple looking to park it beside their bach as an extra room.

The sale price was a lot less than the $18,000 they had originally hoped for last year if they were to make a profit – and even $2000 shy of the amount they needed to break even.

But Alice said they decided to take the hit and sell, if for a bit cheaper than they thought it was worth, because of what they managed to pick their second caravan up for.

The Block stars Alice and Caleb Pearson in the 1980s Zephyr caravan they waved goodbye to at the weekend. Photo / Supplied

Before: After stripping off the wallpaper they discovered rot in the walls. There was also carpet on the floor. Photo / Supplied

The Block stars Alice and Caleb Pearson in the 1980s Zephyr caravan they waved goodbye to at the weekend. Photo / Supplied

After: The renovated caravan has a summery feel with Alice choosing to use adhesive stick-on tiles on the floor and a vinyl wrap to cover the existing benchtops. Photo / Supplied

“We definitely got a good buy, which then took the pressure off for us in terms of selling our Zephyr because we were like it’s now just the cost of carrying that $11,500. The only extra thing is it didn’t come with an awning which we definitely will want.”

They had also come to terms with the fact that caravans were like boats and cars and were depreciating assets and for them the main objective wasn’t to make money but to go on holidays with their kids.

“It’s more about a cheaper way to holiday and holidaying the way that we want to. And if at the end of it we kind of come out of it and just break even or if it costs a little bit each year people spend money on tents, baches or whatever it might be. For us it is probably something that is still financially quite viable especially because we bought well when we bought our first caravan.

“Caleb was very thorough when we went to look at it ... he got underneath and looked at all the cabinets and asked the owner a lot of questions.”

The Block stars Alice and Caleb Pearson in the 1980s Zephyr caravan they waved goodbye to at the weekend. Photo / Supplied

Before: The caravan had the original white exterior with distinctive blue strip. Photo / Supplied

The Block stars Alice and Caleb Pearson in the 1980s Zephyr caravan they waved goodbye to at the weekend. Photo / Supplied

After: The caravan was sanded back and painted using brushes and rollers. Alice even painted the word Zephyr back on herself. Photo / Supplied

Their first caravan project was a steep learning curve and they had also been much more vigilant when doing a pre-purchase inspection.

Their new Anglo caravan is in mostly original condition and had what Alice described as a nice retro vibe that they planned to embrace for at least this summer.

“There has been a little bit of water damage but that’s understandable with things like window seals needing to be repaired, but there’s nothing major, it’s all roadworthy, its got its electrical warrant of fitness and everything. It’s not something we are going to renovate in a rush because there’s no way we are renovating.”

And when they eventually get around to putting their winning stamp on it, it will be purely cosmetic as they were still recovering from last year’s mammoth caravan restoration. They would also be saved from doing anything to the outside as the caravan’s exterior had recently been repainted.

“We are never in a rush to renovate because I think taking the time to actually use something and work out how you exactly use it is important. We did buy it because we think it’s cute – it is like our 70s house at the moment – it definitely needs an upgrade and a facelift but we kind of like the retro style of it.

“There are definitely things we will want to change, but when we do it, we will do it once and we will do it properly and it will be planned, and we will source all the right things and execute it the way we want to.”

In the meantime, she said her kids love their larger purchase and treat it as another playroom.

“They play like camping holiday and go out there and get in the bed. So, it’s an absolute mess now. We’ve had it for two weeks and it’s already an absolute mess with all the kids’ toys and things like that.”

Alice and Caleb’s tips for buying a caravan

1. Be patient and don’t rush into buying one.

2. Carry out a thorough inspection including checking for leaks and rot.

3. If you don’t have the expertise to check for it take someone who does.

4. Don’t just take the owner’s word for it – do your own research.

5. Do it for the holidays and don’t expect to make money.