Pot Nets Community Member Since the 70's (rental, HOA fees)

[debeachgirl4life]

My parents have owned a home in Pot Nets (the original), now "BaySide" since 1973. They missed the '99 year lease offer' by 8months. Anyway, it's been our Summer home, Winter retreat, weekend getaway, for as long as I can remember. Now all the grand-kids, etc. go there & enjoy all the things we did as kids. Problem is...The lot rent it getting absolutely RIDICULOUS! At first, my parents paid about $500/yr (which in the early 70's wasn't cheap either), but they were told it was not going to increase dramatically so 'no worries' Tunnel told them. Over the last several years, since the elder Tunnel's death, his wicked son took over and has made insane decisions regarding the parkS like catering to the wealthy by adding a multimillion dollar golf course, etc. He has been married and divorced a few times and from what we understand has a TON of alimony & support to pay which is another reason for his greed, I assume. My point is, my parent's now find themselves retired and paying over $14k/yr for the lot rent. Granted, the are on the water and have a private boat-slip, etc., but that's still ludicrous. Due to my father working hard all his life and having a great job, it hasn't really been an issue for them, BUT here's where the problem lies... What happens to the place when my parents are no longer here? None of us kids (of the 4 of us) cld afford to take on that lot rental - NOR wld we want to make that investment. I just feel bad that all the good times we had will eventually end and Tunnel will WIN OUT yet again bc I believe most families will ultimately be put in this position. It's quite sad. ~Peace

[longnecker]

Originally Posted by debeachgirl4life

My parents have owned a home in Pot Nets (the original), now "BaySide" since 1973. They missed the '99 year lease offer' by 8months. Anyway, it's been our Summer home, Winter retreat, weekend getaway, for as long as I can remember. Now all the grand-kids, etc. go there & enjoy all the things we did as kids. Problem is...The lot rent it getting absolutely RIDICULOUS! At first, my parents paid about $500/yr (which in the early 70's wasn't cheap either), but they were told it was not going to increase dramatically so 'no worries' Tunnel told them. Over the last several years, since the elder Tunnel's death, his wicked son took over and has made insane decisions regarding the parkS like catering to the wealthy by adding a multimillion dollar golf course, etc. He has been married and divorced a few times and from what we understand has a TON of alimony & support to pay which is another reason for his greed, I assume. My point is, my parent's now find themselves retired and paying over $14k/yr for the lot rent. Granted, the are on the water and have a private boat-slip, etc., but that's still ludicrous. Due to my father working hard all his life and having a great job, it hasn't really been an issue for them, BUT here's where the problem lies... What happens to the place when my parents are no longer here? None of us kids (of the 4 of us) cld afford to take on that lot rental - NOR wld we want to make that investment. I just feel bad that all the good times we had will eventually end and Tunnel will WIN OUT yet again bc I believe most families will ultimately be put in this position. It's quite sad. ~Peace

The Baywood golf course is part of Baywood. It has nothing to do with PotNets Bayside. If you are going to tear down a community and it's owner at least state things truthfully. Yes the ground rent has skyrocketed.but that "wicked" man provides plenty of services and amenities.

[longneckone]

I too complain about ground rent. Tunnell does provide services. They have been plowing snow during today's storm. Streets near my home are down to the blacktop. From experience I know if I leave the park the state roads may not be as clear.

[jmking]

Yesterday I viewed several doublewides $100,000+, $13,000+ PY ground rent in the Longneck-Rohoboth area. Out of 10, 2 where nice. The others where rundown, neglected. One owner told his agent to tell my agent that he'd cut the price in half. One screened in porch was falling apart severally, toilets frozen, overflowing. And one where the owners where there when we visited, talked to my wife and I more than they should have. And above all my agent giving me side glances, subtle hints to stay away from ground rents. I will say one particular trailer was fantastic, great views, very tempting. Also, I do understand that these homes are basically second vacation homes, but for many its not.

But the kicker is this.....If your ground rent climbs to over a thousand a month, for most, a traditional mortgage would be cheaper, because lets face it, most doublewides do not have a view but are instead jumbled together like most parks. On a new traditional $250,000 house, quarter acre of land with a $75,000 down payment at 4%, my mortgage would be under a $1000 a month, and I'd still be close to (no view) the bays and ocean.

Also, my agent informed us the ground rent seen on the spec sheet on a particular site is not what the buyer will receive. An increase most likely. Rents are non-negotiable.

[nuts2uiam]

Originally Posted by jmking

Yesterday I viewed several doublewides $100,000+, $13,000+ PY ground rent in the Longneck-Rohoboth area. Out of 10, 2 where nice. The others where rundown, neglected. One owner told his agent to tell my agent that he'd cut the price in half. One screened in porch was falling apart severally, toilets frozen, overflowing. And one where the owners where there when we visited, talked to my wife and I more than they should have. And above all my agent giving me side glances, subtle hints to stay away from ground rents. I will say one particular trailer was fantastic, great views, very tempting. Also, I do understand that these homes are basically second vacation homes, but for many its not.

But the kicker is this.....If your ground rent climbs to over a thousand a month, for most, a traditional mortgage would be cheaper, because lets face it, most doublewides do not have a view but are instead jumbled together like most parks. On a new traditional $250,000 house, quarter acre of land with a $75,000 down payment at 4%, my mortgage would be under a $1000 a month, and I'd still be close to (no view) the bays and ocean.

Also, my agent informed us the ground rent seen on the spec sheet on a particular site is not what the buyer will receive. An increase most likely. Rents are non-negotiable.

First let me state that I own my home and not renting land. We know someone who does though, and here is their rational. They are retirees and sold a home in NJ for $600,000. They figured that even at $2000 per month, (their ground rent is not even close to that), HOA fees they have a home that cost them $295,000 that has a killer view with every amenity known to man and if they live to 85 they will still have money to spare. That kind of thinking is not for me BUT it could be for others.

[longneckone]

Originally Posted by jmking

Yesterday I viewed several doublewides $100,000+, $13,000+ PY ground rent in the Longneck-Rohoboth area. Out of 10, 2 where nice. The others where rundown, neglected. One owner told his agent to tell my agent that he'd cut the price in half. One screened in porch was falling apart severally, toilets frozen, overflowing. And one where the owners where there when we visited, talked to my wife and I more than they should have. And above all my agent giving me side glances, subtle hints to stay away from ground rents. I will say one particular trailer was fantastic, great views, very tempting. Also, I do understand that these homes are basically second vacation homes, but for many its not.

But the kicker is this.....If your ground rent climbs to over a thousand a month, for most, a traditional mortgage would be cheaper, because lets face it, most doublewides do not have a view but are instead jumbled together like most parks. On a new traditional $250,000 house, quarter acre of land with a $75,000 down payment at 4%, my mortgage would be under a $1000 a month, and I'd still be close to (no view) the bays and ocean.

Also, my agent informed us the ground rent seen on the spec sheet on a particular site is not what the buyer will receive. An increase most likely. Rents are non-negotiable.

A good park such as pot Nets requires n inspection before the home can be sold.
Depends on the lease. Many leases can be taken over.

[jmking]

Originally Posted by nuts2uiam

First let me state that I own my home and not renting land. We know someone who does though, and here is their rational. They are retirees and sold a home in NJ for $600,000. They figured that even at $2000 per month, (their ground rent is not even close to that), HOA fees they have a home that cost them $295,000 that has a killer view with every amenity known to man and if they live to 85 they will still have money to spare. That kind of thinking is not for me BUT it could be for others.

I agree. For some its convenient. I see that and I might still (slim chance) make an offer on that one particular doublewide that was fantastic.
Did you know that there is an exit tax in NJ? That's right, if you move- the state will tax you. My understanding is many rent their homes for a few years then announce their move to the state. Crazy.

[jmking]

Originally Posted by longneckone

A good park such as pot Nets requires n inspection before the home can be sold.
Depends on the lease. Many leases can be taken over.

That's good to know.

[nuts2uiam]

Originally Posted by jmking

I agree. For some its convenient. I see that and I might still (slim chance) make an offer on that one particular doublewide that was fantastic.
Did you know that there is an exit tax in NJ? That's right, if you move- the state will tax you. My understanding is many rent their homes for a few years then announce their move to the state. Crazy.

Not unless you are either a non resident or the home is your principle residence and the gain is over $500,000/$250,000 if a couple/single. If gain is under that, and that was your primary residence there is no exit tax unless something has changed. If however, you are a non resident selling then there is a tax on the gain.

[jmking]

Originally Posted by nuts2uiam

Not unless you are either a non resident or the home is your principle residence and the gain is over $500,000/$250,000 if a couple/single. If gain is under that, and that was your primary residence there is no exit tax unless something has changed. If however, you are a non resident selling then there is a tax on the gain.

Thanks for that info....I'll tell my brother-in-law the details. He wont be happy about it, but again might be aware of it.