[davesiegel]

Hi everyone, we spent a great weekend in Lady Lake last weekend, and would like to move there. We live in Naples, Florida now and we have our house for sale here.
We saw two nice developements, one offered modular homes (new) that you purchased but you leased your homesite. The other developement was wood frame houses that you owned your lot (It was little more expensive there and the taxes are higher) My wife is really concerned about leasing our home site, can anyone out there help us with any draw backs or pluses about leasing your property? (Obviously we are leaning more toward the modular homes because the sites are shady and laid out beautifully.) Thanks, Dave & Jan

[Jewels36]

One draw back would be that the modular home with out the land would not retain any type of value. It would probably be a little difficult to resale if you ever wanted to.

The financing would also be different. You would not be able to finance it as real property (regular home). Financing would have to come through a finance firm (vs. a mortgage co.), or a company that focuses on mobile/modular homes. Rates would probably be a little bit higher.

There is also the issue of insurance. In KY, if the home is a modular home (not a mobile home) and it is permanently affixed to land, they treat it as a stick built home - no problem. If it is not permanently affixed to land, or considered a mobile home most places will not insure it as real property. Then you are forced to go to specialty companies to insure the property which charge an arm and a leg.

I do not know if it is the same in Florida, but I would certainly check on it before entering into a contract.

[Jammie]

One of the pluses of the modular home would be that you wouldn't pay tax on the land and you would more then likely pay less taxes then on a stick built home anyway. Some of the places even do the lawn care for you. The modular homes/mobile homes have come a long way from the little hotboxes they used to be. They're well built and some are beautiful inside. About the only drawback of leasing your land would be if the owners wanted to sell as some have sold to people who then build condos in that spot. A drawback is that your insurance rates may be a bit higher on a modular home then a stick built house. If I was chosing, I'd opt for the modular.

[davesiegel]

Thanks for the great answers. I suppose I should clear up a few things. The one development we really like leases the property. They have 1800 or so homes in there. Palm Harbor and higher quality mobile homes are some of the older homes, the newer homes are modular and are set on a stem wall. You pay a tax based on the size (double wide, triple wide, etc.) The taxes are only a license plate fee. There are several lived in units available and the prices are right up there with the new units. This park has been in Lady Lake for 30 years or so and has a very good reputation.

The other development is a on site, frame built community. It is very, VERY pristine and I worry that I might not be able to keep up our property quite as nice as those that are there. You can also only buy a used home, there are no more spaces for new houses. The taxes there are about $800 PER HOUSE (with homestead).

Any more thoughts with those additional comments thrown in?

Dave Siegel

[Jewels36]

Dave,

Do you mean that the development leases the lot to you, that they lease the lot and home to you, or that they lease the lot from you? If they are leasing the lot to you and you purchase the home, my original comments are still the same. That would also explain why the taxes are basically just a license plate fee because the home is not thought of as real property in real estate terms. If they lease both land and home to you, then it really doesn't matter becuase you will not own any of it. I can't see why they would lease the lot from you, so I am sure this is not the case.

The benefit to this community is that it has been around for a long time and has a good reputation. That can give you some confidence about chosing this community. Taxes are lower too. If you are on a fixed budget, or may be down the line, this is good. Check out the insurance situation though. Also check to see if the development has any type of restrictions, etc. How long is the lot lease? Can they raise the rent? How often? Is there a cap on rent increases? If you were to sell, the buyer would either have to lease the lot, or move the home. This might make it more difficult to sell. Another thing to look into is the tax right offs you get from owning a home. This property may not qualify. If you are taking capital gains from the sale of another property to purchase this one (to avoid paying the capital gains tax), you may not be able to do that with this property.

The second development sounds as if these homes are considered stick built and the lot goes with the home, therefore considered real property and thus the reason for the higher taxes. Insurance may be better on this (all though age could be a factor). Check out the deed restricitions, if any. If this place has mostly older homes, then it also has been established for awhile. Check out the rep that it carries. If the yards are very pristine, it probably is well liked as well. These may be easier to sell, if you ever wish to sell. They may appreciate more than the others. You can apply capital gains to this property if you have any. This property will provide you with a tax right off. Is there an HOA?

Negative is the higher taxes. If property value increases, so will taxes.

I don't know your situation, and I haven't much experience with mobile homes or modulars in Florida so I hope my thoughts are helpful. I am pulling from my experience in the real estate/mortgage/insurance industries and personal experiences I have learned from family and friends. You will probably be happy which ever one you decide on. You will have to determine which one meets you financial needs both long term and short term. That is basically what it comes down to.

[Richarddean]

HI: I ALSO am looking for doublewide insurance in Lady Lake, not much luck, if you get any quotes, let me know who they are and will appreciate it much.

Thanks Richarddean email dreamsendser@hotmail.com