Land lease verses owning the land. (Dover: school, tax, move to)

[maryCh]

From all I have been reading on various "restricted" communities, whether mobile/modular or manufactured homes or not... sounds VERY similar to the condo concept with condo association rules, etc. This may be a fairly new concept to DE, but has been going on for years in other areas... especially resort/beach type areas.

Summerling pointed out some VERY good questions, and very real to those 55+ purchasers in particular. It is something to be very careful with your research; as everyone knows families in typical households aren't commonly the "married couple, 2.5 kids, etc" anymore. The "definition" of family and household has taken a sharp turn in the last 15-20 years; something that may not even be addressed in the fine print. Or quite likely, the fine print is MORE restrictive, not less.

Definitely a "BUYER BEWARE" thing to consider!

Mary

[rdlr]

Mary's point is well taken. Read the fine print, again-again-and again.

The concept of leased land is not entirely new in Delaware. Many don't know that most of those beach properties, with little cottages, east of Rt. 1, are not held in fee simple interest, but are leasehold estates. That goes for Lewes (east of the canal bridge) Rehoboth Beach, and Dewey Beach. Of course the term of the lease on those is quite long, with 75-80 years remaining on the lease, I believe (each area being different). My experience has been that many don't even know their house is sitting on rented land. In Lewes, I found that the leasehold fee for the lots in one of those areas is incorporated within the city tax bill, and that leasehold fee is quite inexpensive, say $100-$200/year. The thinking behind that is to ensure that commercial development can't take place on the east side of Rt. 1.

[elizamary]

Hey all...........
As you all know, Bill and I live on leased land in a 55+ community. This is something I have investigated for 2 years before we finally made the decsion to buy on leased land.
For us, it was less expensive for what we were getting. I have spoke to others that lease the land and they say for them it was the best way to go as well.
My neighbors claim it is best to have the money in the bank rather than in a home.
This all depends on what you want. If you want to leave a huge property inheritance to your love ones, this is not the way to go. At our age and where we are in life, we do not know how long we have on this earth and plan to have less stress and more fun.
As far as inheritance, I love the bumper stickers that say "we are spending our kids inheritance".
Nothing in life is certain and living in this community certainly isn't either. But it has all the ammenties of a country club, they cut our grass and remove snow and we are only responsible for the house and not the ground.
This is the kind of life both Bill and I wanted.
When we came to purchase in southen Meadows, I had a list of all questions to ask that were of importance to us or may be in the future.
Some complain about certain rules but they tell you that before we moved in. If they don't tell you ASK! It is very important to cover all your ground when buying anywhere.
We are lucky in Southern Meadows, the owners are on the up and up. One of our neighbors worked for the police department in NYC and did some investigating before she bought here. Needless to say, they passed the test.
Paying the land lease was another concern but I figured out without taxes on the land and the amnenities of a county club we break even.
I had a few concerns before we bought such as are pets, children, and guest.
Pets are allowed otherwise we would not be here. My youngest daughter is 29 and not married. We wanted to make sure she could live with us if she needed to and I believe the age is either 18 or 21 to live there. So we were cleared there.
My point is, you have got to ask all questions and decide which is the right way to go for you.
Not everyone is suited for a 55+ land leased living. I know quite a few people that land lease up north and also in the south. they live up north for 6 months and in the south for 6 months. It works for them and lucky for us they invited us down in Feb.
We choose to live our life as we see fit and not worry about what we will leave when die.
Remember, you can't take it with you.
Another thought...........Neither bill or I know what kind of shape we will be in down the road in a year, five years or 10? So we choose to do what makes us happy.
Just my two cents.

[Summering]

Originally Posted by maryCh

From all I have been reading on various "restricted" communities, whether mobile/modular or manufactured homes or not... sounds VERY similar to the condo concept with condo association rules, etc. This may be a fairly new concept to DE, but has been going on for years in other areas... especially resort/beach type areas.

Summerling pointed out some VERY good questions, and very real to those 55+ purchasers in particular. It is something to be very careful with your research; as everyone knows families in typical households aren't commonly the "married couple, 2.5 kids, etc" anymore. The "definition" of family and household has taken a sharp turn in the last 15-20 years; something that may not even be addressed in the fine print. Or quite likely, the fine print is MORE restrictive, not less.

Definitely a "BUYER BEWARE" thing to consider!

Mary

Thank you MaryCh........
I just thought it would be good for people to certainly check into very important facts in the contracts, of Condos, or a land lease, 55 community.
I have certainly heard some rules that I just couldn't do personally......
To possiably have a community I live in ,tell me my grandchild is allowed two weeks to visit! I'd just walk away. Because important to me is time well spent with my loved ones. Believe it or not, in Florida there are these rules in some of the 55 communities........and I don't know where they are elsewhere.
Common to Florida, or common in other states.......I just don't know.
My sister didn't like that if something happened to her, she couldn't give ownership to her home to her only daughter not 55.......that was extremely important to her. She'd want to do that, of course......That option had to be available. ( rule was in SC)
My life extends, and involves the loved ones close to me. I want not rules giving them certain timeframes of staying in my company.
As happy as my life is now.....it is made more happy by the ones I want to be with. Rules that give "timeframes" to my family.......How often, and how many days they are allowed to spend with me. Would make me get up out of the closing table.......and walk away.

[rwmatfl]

I agree. If I may, could anyone give me some advice regarding Pot Nets? A very good friend of mine bought a mobile home there 3 years ago and seems pretty happy with the place. I was a bit shocked at the lease he had, I believe it was $6000.00 a year. He told me it can go up 5% a year. Is this the norm? My wife and I are thinking of moving to the Millsboro area and were seriously looking in Pot Nets. After reading all that I've found here, I'm changing my mind. Would anyone have any suggestions as to where we can look? We actually like the idea of a manufactured (mobile) home especially when price is considered. I like the ocean as both my wife and I fish and I hunt. I've heard Delaware has some great deer and goose hunting. Sounds like heaven to me. Any help, suggestions, verbal abuse,etc would be greatly apprciated

[Gone-2-Beach]

Originally Posted by rwmatfl

I agree. If I may, could anyone give me some advice regarding Pot Nets? A very good friend of mine bought a mobile home there 3 years ago and seems pretty happy with the place. I was a bit shocked at the lease he had, I believe it was $6000.00 a year. He told me it can go up 5% a year. Is this the norm? My wife and I are thinking of moving to the Millsboro area and were seriously looking in Pot Nets. After reading all that I've found here, I'm changing my mind. Would anyone have any suggestions as to where we can look? We actually like the idea of a manufactured (mobile) home especially when price is considered. I like the ocean as both my wife and I fish and I hunt. I've heard Delaware has some great deer and goose hunting. Sounds like heaven to me. Any help, suggestions, verbal abuse,etc would be greatly apprciated

Welcome to the Delaware forum. Hopefully, no verbal abuse will follow.

I have heard second- and third-hand stories about the horror of land lease at Pots Net but I believe those land lease stories are not representative of land lease in general. Many 55+ communities that are opening are land lease communities. I happen to like a few of them, including Nobles Pond and Wild Meadows in Dover and Southern Meadows in Magnolia.

The land lease for me compares to my current expenses as follows: In NY, I'm paying about $9,100 in taxes annually. Using Nobles Pond as the example, I'd be paying $4,800 in land lease and about $1,200 in taxes - for about $6,000 a year. So for me, land lease is actually a cost savings.

There is much information on in Delaware forum. Search around the various threads and you'll find much good information ... and a little chat. Be sure to ask lots of questions when you visit whatever communities to intend to visit ... and good luck!

Charley

[rwmatfl]

Thank you, Charlie. I'll keep looking around. Looks like a bunch of nice people
hang out here. Thanks again.

[elizamary]

Originally Posted by rwmatfl

Thank you, Charlie. I'll keep looking around. Looks like a bunch of nice people
hang out here. Thanks again.

Hello there............I live in Southern Meadows and am very happy here. Boy, this topic has been of the board for a while. Glad it is back.

The land lease is an individual choice. Southern Meadows is a land lease and my neighbors agree they rather have the money in the bank than in the house at this stage of the game. We are a 55+ community with a pool, gym and will be getting other activities this year like a pool table and horse shoes.
My taxes are $400 a year and because we dont' own the land, taxes are only paid on the house and not the land.

We were looking into a community where there were other people we relate too, a pool and a gym. If We had to pay for that, it would have cost us a pretty penny a year. So if you add the $365 lot rent, the $4,000 we pay a year includes our taxes and country club. We are still living cheaper than we did in PA and I was able to retire. If we stayed in Pa, I would have to work.

Each decsion is an individual decsion and each person needs to decide what is right for them. We are not all the same and there will be different opinions.
Opinions are like noses , everyone has one.

And about Pot nets, It is my understanding the lot rents are out of this world. I heard some negatives about Pot nets but that may have changed. I really dont' know but be carefull and find out everything you can before you buy.
Good luck to you.

[rdlr]

Deleted by Delly.
Just saw that my comment has been regurgitated many times

[rwmatfl]

Thank you, Elizamary. I will speak with my buddy about Pot Nets, but it looks like we'll have to keep looking around. That in itself can be fun.