Community Forums

**TonyDi** · 02-08-2014, 03:42 PM

Quote:

Originally Posted by vsheetz

Nearly $4k/yr for maint. Ouch.

3X for me too

Steve N Sal · 02-08-2014, 03:42 PM

As far as we're concerned it doesn't make any sense to purchase in our park. For what we pay for rent we can come here 15 years and still not have what it would cost to purchase the cheapest lot in the park. Not to mention no POA fees, taxes, insurance etc and when we decide we don't want to come anymore we aren't faced with having to sell the lot. JMHO of course.

bluepill · 02-08-2014, 03:57 PM

The sales commission buying AND selling is often hidden, but you are surely paying for it. Your rights as an owner may be quite limited also.

We had a nice time share condo in Ft. Myers Beach and kept it for 25 years before selling recently. Because of the length of ownership, the numbers worked for us. If we had held it less than 15 years it would have created a loss.

HoleInOne · 02-08-2014, 05:23 PM

I need to crunch some numbers on this. Total outlay per year around 5k. Lot rents for $2100 per month in prime time. As a rental when not in use there are some tax breaks. Plus this place is pretty full. No room currently. Owners health issues are the only reason we got in. Management fees for rental income 20%.
Oh BTW we are 10 minutes from Marco Island and it has been in the mid eighties all week. Not quite Texas.

CampDaven · 02-08-2014, 05:40 PM

We know many folks that have one place North and another South. They enjoy the social activities and are not adventurous.

We have trouble staying in one place for a month or more. Couldnt do it. Too much like having a house. Gotta keep exploring.

HoleInOne · 02-08-2014, 07:48 PM

Just spoke to another couple here who would like to stay longer but have to leave because the owners of their lot are coming down Thursday and there are no other lots available.

Davdeb1 · 02-08-2014, 08:11 PM

Quote:

Originally Posted by HoleInOne

I need to crunch some numbers on this. Total outlay per year around 5k. Lot rents for $2100 per month in prime time. As a rental when not in use there are some tax breaks. Plus this place is pretty full. No room currently. Owners health issues are the only reason we got in. Management fees for rental income 20%.
Oh BTW we are 10 minutes from Marco Island and it has been in the mid eighties all week. Not quite Texas.

Total outlay per year is 5k PLUS insurance. Then there is the capital outlay for the price of the lot. I am very familiar with the area you are looking at. Everyone who lives there can hardly wait until November so it cools down and the humidity drops. Staying there Dec, Jan, Feb, and March will be 8k and nothing else if you rent. Then you can leave and go somewhere cool. In Florida, unless you are going to live there, it never makes financial sense to buy any property. If you just want a place to call your own, and can afford it, that's a different story. That's why we own RVs, we know they aren't good investments, we just want them.

If you can afford it, do what makes you happy.

HoleInOne · 02-09-2014, 06:53 PM

I understand the costs involved in owning the lots. What I would like to hear is from people who have bought lots and sold lots to see if there is any chance for a profit on the sale. If the lot can be bought and you get a 5 % bump every year in replacement cost that would have a bearing on the value if any. As i said the place is sold out which mean to me there is a demand for this kind of property and as demand increases so will the prices. I know prices are down a bit from their peak(as with all real estate) and am wondering about the upside of ownership.

Clayobx · 02-09-2014, 08:01 PM

Location, ammentities, did I say location? This might be an investment? Real property is at this point a guess at best. JMO but well thought out!

Gary1965 · 02-09-2014, 08:04 PM

Quote:

Originally Posted by HoleInOne

I need to crunch some numbers on this. Total outlay per year around 5k. Lot rents for $2100 per month in prime time. As a rental when not in use there are some tax breaks. Plus this place is pretty full. No room currently. Owners health issues are the only reason we got in. Management fees for rental income 20%. Oh BTW we are 10 minutes from Marco Island and it has been in the mid eighties all week. Not quite Texas.

Now I know exactly where you are and we love that place ! I would generally agree with most posts that it is not the best investment, but neither is a motorhome

If you have a decent time horizon of wanting to own it, then I would be inclined to go for it. Remember, your winter stay is all about location, location, location. If you want the winter months guaranteed, then I would go for it. Also, those lots peaked in 2006, then of course, plummeted greatly and have rebounded some. I still think in the long run you can make some money on the lot itself, but you do it because you want to be there, not because it is a great investment.

gemini5362 · 02-09-2014, 09:19 PM

The other question is what about tax write offs. I assume you go down there in the winter for the weather and go somewhere else in the summer. If I remember right you cannot depreciate land. But if you stay in it during the winter and rent it during the summer you probably can write off the maintenance costs as business deductions. I would consult a good accountant and see what they say about it. I think if you finance the purchase price you can write off the interest as a second home. I also believe if you live somewhere else in the summer you can make a good case for having to go check on your property around November and spend the time until may working on the property getting any maintenance work you feel you need to do finished. If you are going to be going down there to check on rental property you own then you can deduct mileage for the trip. Like I said get a good accountant to help you figure out if there is a tax break in it.

SuperGewl · 02-10-2014, 05:08 AM

Quote:

Originally Posted by gemini5362

The other question is what about tax write offs. I assume you go down there in the winter for the weather and go somewhere else in the summer. If I remember right you cannot depreciate land. But if you stay in it during the winter and rent it during the summer you probably can write off the maintenance costs as business deductions. I would consult a good accountant and see what they say about it. I think if you finance the purchase price you can write off the interest as a second home. I also believe if you live somewhere else in the summer you can make a good case for having to go check on your property around November and spend the time until may working on the property getting any maintenance work you feel you need to do finished. If you are going to be going down there to check on rental property you own then you can deduct mileage for the trip. Like I said get a good accountant to help you figure out if there is a tax break in it.

Second Home write off NO NO NO. Can't do it unless it is livable with complete amenities, Last time I checked a plot (parking space) of land self containable like your MH, which can be written off on taxes for second home.

I know all of the lawyers will chime up here pretty quickly

JMonroe · 02-10-2014, 07:28 AM

This is a personal decision that has to be based on your likes and expectations.

Firstly, I don't agree that just the fact that there are lots for sale mean there is something wrong. Given our demographic (the exceptionally experienced

) there is a natural turnover as physical limitations eventually make RV travel or living away from immediate family difficult to impossible. I also think some inventory has built up due to the economic challenges of the last several years. That can be to your advantage. We just bought a lot from a couple very motivated to sell, due to health issues, for 1/2 of what they had in it.

Rents here are 1/3 of what you quote, but that's just one of the reasons we're here and not there. Quarterly maintenance fees are also a third of those you quoted, and I suspect the taxes are less than that. But that simply reflects the market where we are vs where you are, nothing more.

At our age, the lifestyle potential is worth more than the investment possibilities. Those that simply want to add the sales price and carrying costs up to measure against rents are missing at least two points, in my opinion. One, rents (and prices) will increase as demand does (the forward edge of the baby boomer generation are just getting to Medicare age). Two, you'll get a significant portion of that back, should you ever decide to sell, even if you don't "make money" on the transaction.

We now own two lots, one here in Florida and one farther north on a big beautiful lake. In both cases if we use the lot for only three months we're about on par with what three months of rent would have cost us. Our Florida lot has a history of being rented out every year for 4 to six months. If there's ever a year we decide to winter out west, as example, we'll not only get our carrying costs back, we'll be a bit ahead. In the meantime, we're guaranteed we'll always have a place to park in an area we love, near friends. We are not letting the fact that we own lots hold us back from our travel plans either. We'll be spending a few months on the left side of the great USA this calendar year.

bronk · 02-10-2014, 12:57 PM

What we have done in the past in order to save on lot rent in Florida is to spend time in the central part of the state (Orlando area), for the months when it is likely to be comfortable ( Oct., Nov. and maybe Dec), then "migrate" to southern Florida (Venice area) when the colder weather becomes more prevalent (Jan., Feb.) for example. We have paid upwards of 500 to 600 per month in very good parks and much less in very good parks while in the colder areas of the state. Works for us.

Bronk