Advice required. 55+ manufactured home communities. Purchasing the land vs paying lot fee’s? (Punta Gorda: for sale by owner)

[BuckhornDan]

Right off the top it seems like a no-brainer that owning your own land vs lot rental is the better way to go. However in saying this, we all know that buying that property on its own land cost a lot more (upfront money) than buying the property on the rental lot (higher monthly cost).

Looking for some of your experience/input on the differences between the two options.

Thanks in advance.

BD

[cbm369]

Just really depends on what you're looking for.

If you are talking 55+ communities, you will have a HOA, even if you own the land. That could be a small fee (under a $100) or a big fee for a newer community with more amenities.

If you rent the lot, that lot rent will be much more than what you would pay to a HOA, but some recurring expenses may be included. ( water, sewer, trash, landscaping, etc..)

You should consider what your expenses could be down the road once you are no longer working and living off of a fixed/limited income. 15-20 from now that lot rent that is $800 now, could be $1000, $1200 or who knows... HOA will go up some, but to a much lesser degree - at least you will own the property and could sell if you desire.

In my opinion, owning the land would be ideal, but everyone's situation is different.

Good Luck!

[BuckhornDan]

I agree. Thanks. I think owing the land in a 55+ community makes it feel more like your own and therefore the community may be better cared for. I also think it would be easier to sell if you owned the land vs being at the parks mercy when it comes to annual increases etc.

[Harbor Hopper]

Are you referring to actual true lot rental or a co-op? We have very few mobil parks and communities with true lot rental. Most are co-ops, where you don't own the land under your home, but rather a % of the community property as a whole. So you are a shareholder in the community.

[TamRE]

My parents live in Blue Heron Pines in Punta Gorda which is a true lot rent community by Sun Communities. The golf and waterfront lot rents are around $699 a month. They have some specials with the new homes and others that are not water or golf front are cheaper. The only problem is if you are not locked in at a lot rent price, then they can raise it on you. The other problem with lot rent communities is that the community can be sold to a different owner and everything can change. My parents have lived in this community since the 1990's and it has changed hands several times with new changes each time someone takes over. I have also seen lot rent communities be sold and everyone that owned a mobile home in that community had to move to a different community. They used the land to build single family homes.

There are land owned mobile homes that are not in communities with an HOA fee and there are land owned in communities with HOA's. A Realtor cannot sell in lot rent unless it is a Co-op or if they have a license to sell a motor vehicle. So, you will not find lot rent mobile homes in the local MLS.

The best site to search for lot rental mobile homes is www.mhvillage.com. You have to go directly to the sales rep in those communities or the owner if they have it for sale by owner.

When looking at mobile home Co-Ops be sure to check to see if the purchase price includes the shares. Some do and some don't.

[BuckhornDan]

Hi all,
Decided on a condo after all. Thanks for the information.