Land lease verses owning the land. (transplants, motel, mobile home)

[elizamary]

Originally Posted by Summering

You are so right here. I personally would never do a land lease. You are at the mercy of the landlord, and that can get bad. A big example is my sister who lives in DE. Her lot rent went up from almost 4,000 per year to over 7,000 per year within a three year time period! All the people in her community are upset over the tremendous raises. Plus she pays taxes on her home, has to pay sewer and water seperately to the land lease owner. There are a lot of additional expenses.
Another point your right about. She has to do all of her homes maintenance.
That is her obligation, and her cost. She must find her own handyman and pay for repairs.
Another point which is true. She pays for someone to come and mow her law, that is not included, but it is expected to be done. All yard work is for her to take care of, except some tree trimming along the road if need be.
The article is so deceiving.......I can almost guess who put that out.....
Own your own property so you can never be at the mercy of a landlord.
You'll know your tax and how they will increase. The land is yours, which is a sense of security.
This way no one can come along and make the land lease so, so, high......that you'd have to leave your beloved home because of it.

This is a good discussion and offers pros and cons for those interested in a land lease opposed to owning your land.

You do have to do your homework. Some communities are absolutely off the charts.

One of our new neighbors worked for the police in either NY or NJ. Before she purchased her home, she did an investigation on the owners. The results were on the up and up.

[peeweeaz]

Well Elizamary,

You said sometime ago that you did a lot of research (I believe you mentioned two years) before you settled on Southern Meadows. I trust you made the best deal for your situation. Like I said before, your lot rent and home price seem very resonable compared to other communities. Folks really need to do their homework, ask questions and read the fine print. Plus, I think Delaware is finally realizing that many retirees are looking to relocate to their state for various reasons and are playing catch-up building 55+ communities. Southern Delaware, for the most part, is farm country and not too many retirees want to plow the back forty and plant crops all day long. Those days are long gone. So, farmers are selling their properties to developers who are throwing up housing as fast as they can. Like rossc said, the "perfect storm" is a comin'. I wonder where the next great migration will be??

[elizamary]

Originally Posted by peeweeaz

Well Elizamary,
, is farm country and not too many retirees want to plow the back forty and plant crops all day long. Those days are long gone. So, farmers are selling their properties to developers who are throwing up housing as fast as they can. Like rossc said, the "perfect storm" is a comin'. I wonder where the next great migration will be??

I can't even imagine where the next migration would be. I will tell you my home went up $9,000 since last Aug. So they are on the rise in this community as well.
I knew that would happen. When we saw this home, I knew it was only a matter of time before it would jack up in price. It seemed too good to be true.
we had visited a ton of communities and believe me this house was as nice as the ones selling for $200k. So it won't be long before it is up there.
We were just lucky to hit it at the right time.
I wanted to settle for a re sale but hubby wanted a brand new home. I caved but it wasn't hard to do.

[rossc]

Originally Posted by peeweeaz

I wonder where the next great migration will be??

Florida. They're running from the high insurance costs like rats leaving a sinking ship. They come here because compared to FL it is cheap and they can be near the ocean without paying an arm, leg and left ear for insurance.

[elizamary]

Originally Posted by rossc

Florida. They're running from the high insurance costs like rats leaving a sinking ship. They come here because compared to FL it is cheap and they can be near the ocean without paying an arm, leg and left ear for insurance.

That is if they can get insurance. Although, last year and so far this year has not been bad as far as hurricanes go.

Most of the storms are in Asia

[peeweeaz]

September is the high month for hurricanes. But, insurance companies aren't going to let their guards down. You will pay. I think I may have mentioned my wife's sister has some friends near Ft. Lauderdale. I think their flood insurance is $10,000 per year. That's on top of all other expenses. Rossc, you're right, but I was wondering where after Delaware? Right now Arizona is the fastest growing state in the country. Problem is the state can't keep up with the infrastruces - roads, services. We sit home and watch the news showing the gridlock every single work day - morning and night. If you have to work, Arizona is not the place to come unless you can walk from your residence. Plus, water in many areas is a major concern because most of Arizona, especially in the valley where we live, has been in a drought for several years. And with global warming (if you believe it - I do and I don't care who or what is causing it) the winter snowpack up north that feeds the Colorado River is less and less. I guess when we turn on the faucet and nothing comes out will be the time to pack the suitcases and move elsewhere. Forget about selling the house. Who would want it with no water??

[rossc]

Originally Posted by peeweeaz

but I was wondering where after Delaware?

I think TN is about the most appealing state. I'd be there in a New York minute if it was on the ocean..or at least had some very large lakes.

[MPBsr]

Boy, I'm glad we walked away from what we thought was the perfect house/location for us 3 years ago. It's in Potnets right on the Indian River (Sunset Strip) with a lagoon in the back. At that time the house was selling for $159,000 and the land lease was $13,000 per year.

I happen to see that the house is still for sale, now at $94,000 and the land lease is up to $17,000.

We really thought about buying and tearing down the house at that price to put up a modular. Figured for about $275,000 total could have the perfect house and location, but the land lease scared us away.

This just confirms to us that we'll never buy with a land lease, even if the house is free.

[rossc]

I looked at that house last year. I never got past the lot rent. I think the best deal going was a peninsula lot in Mariners Cove. It was owned by the land owner who died. It is bulkheaded on three sides with deep water all around. They were asking $230k for the balance of a 100 year lease. 84 years left on the lease. That's $2800/year for one the best locations in the bay. The lease is just like a deed at that point. It can be willed or handed down through the family or sold. 84 years is 3 generations. Might still be available. It's hard to finance leased land, so unless you have a personal banker in your pocket or another property to borrow against, a lot of these leased land deals have to be cash deals.

[elizamary]

Originally Posted by rossc

I think TN is about the most appealing state. I'd be there in a New York minute if it was on the ocean..or at least had some very large lakes.

TN is one state I know nothing about except it has a ton of country western plus it is the home of the King and rednecks.

Not long ago I saw Eric Estrada on a commercial for property in TN. It was so cheap and they were supposed to fly you down for a weekend.
I was thinking of calling but at time I was so busy with work, selling my home and all the stress that goes along with it, I never did.