Regarding real estate on leased land
1. Why are there so many properties on leased land?
Here are several situations. Commercial and commercial land is often rented around the world. In New York City, Tokyo, and other larger and older cities; Landowners often rent the land under these skyscrapers, and in some cases even park land is leased to the city by landowners.
In Lewes, all the land east of the Lewes and Rehoboth Canal, which is known as Lewes Beach; it is leased land. The land leases there are typically owned by the City of Lewes and are typically for 99 years and renewable. Some of the properties in Lewes Beach, however, are rented for shorter periods by the city, but as a general rule all are automatically renewable. When you buy property in Lewes Beach, you pay a fee to have the leased land reassigned to you. That fee for a bayfront property on the Delaware Bay; it can be more than half a million dollars, depending on the size of the lot; and the value of the home and improvements is added to the lease’s assignment value. In other words, even though it is a leased lot in Lewes Beach; the price is in accordance with the purchase of the land. This land has always been leased land as prescribed by England, during our American Colonial Period and that style of ownership remains.
In the Rehoboth and Dewey Beach areas, it is the Rehoboth By The Sea area, a large number of lots are owned by the family business Rehoboth By The Sea Realty Company. The current treasurer of Rehoboth By The Sea Realty Company is Jack Redefer; 302-227-4277. The land is rented to tenant-owners for shorter periods of years; some leases have as little as 20 years left. These leases may or may not be renewed and the value of the land, if the resident can purchase it later, could be significant. As a result, these properties on leased land cost much less money than the lots that are owned. Some of the lots were purchased from Rehoboth By The Sea Realty Company in the past and are owned by the residents; most have not been purchased. Rehoboth By The Sea Realty Company may not renew some of the leases, some may, it is up to them. On lots for which they did not renew their leases, residents must remove the improvements and leave the land at its original, unimproved level at the end of the lease. The good news is that you can save up to half a million dollars when you buy a home on some of these lots. The bad news, of course, is that you may have to remove the house and vacate the lot in a couple of decades or so.
Long Neck and other areas where there are trailers, manufactured homes, single widths or double widths are also mainly made up of leased land. There are some leased lots along Route One where trailer parks now sometimes contain larger, more conventional homes as well. These land rental communities are much less expensive to buy. The appreciation in value is small or non-existent, or in some cases the value of a property purchased in these leased land communities may depreciate to much less than the purchase price. There is also a monthly or annual rental fee to pay for the use of the land.
2. Why would someone buy a mobile home or manufactured home on leased land?
There are many, including real estate agents, who wonder why in the world someone would buy one of the so-called mobile homes on leased land. In reality, many of the people living in the leased land communities are well, even wealthy in some cases, many of them are real estate agents.
Safety and security are one of the reasons. Many of the people in land rental communities, which some might call trailer parks, are retired residents or part-time residents. There are many who prefer security services that are only available in manufactured home communities. Most of these communities have community centers, neighborhood watch, security patrols, and alert neighbors who police the community much better than the police in a town or city.
Low maintenance is another reason why people, indeed most people, live in land rental communities. The lots are usually quite small and often each one is maintained by the park owner. When the individual needs to maintain his individual lot, the expense of mowing is minimal. The fee for mowing, trimming and pruning can be as low as $ 8 at a time as the lawnmower can often take care of a lot in less than ten minutes and if you have multiple lots in the same community you can Do it 5 or 6 batches per hour with a push mower and brush cutter. Some folks do great yard work on their community lease lots. In fact, some communities have annual or seasonal competitions for the best-kept, most beautiful, or most improved garden. Many of these lots are only 50 feet by 100 feet, sometimes less, so a lot of beautification can be done with limited expense compared to the much larger lots one must own in a non-rented community.
3. Are homes on leased land a good investment?
Homes on leased land are rarely a good financial investment. There are exceptions. Homes on leased land in Lewes Beach are as good as financial investments as homes on what is called paid or titled land in the city of Lewes proper. In fact, since Lewes Beach is more desirable to more people, prices are higher, and Lewes Beach’s percentage of appreciation is, in the long run, better than Lewes proper. The town of Lewes, in addition to the beach, has more of a Williamsburg flavor in architecture, atmosphere, and character. Lewes Beach, on the other hand, is less traditional in its architectural character. The town of Lewes is very much a pedestrian and shopping town with shops, boutiques, and small shops along Market Street, Second Street, and Pilottown Road especially. The beach has very little commercial activity and is much more of a beach-side dorm community where the focus is, of course, the beach, the canal, and the bay.
Homes, manufactured homes, or rebar homes in other land rental communities are often not a good financial investment. However, they can be your best lifestyle investment. Many people have other real estate, other investments, and do not need the home they own in a land rental community to appreciate in value. And, houses in land rental communities are a small fraction of the purchase price they would have if the land were transferred, with fees.
For example, a waterfront home on Rehoboth Bay in the Rehoboth Bay mobile home community; now known simply as Community of Rehoboth Bay; It can cost as little as $ 115,000 for a beautiful modern, double-wide, full-time home. The land rent would then be $ 400 a month on a $ 500 lagoon, up to $ 750 a month or more on the largest and best bayfront lots. Compared to a home on deeded land of the same size, that means a savings of over a million dollars !!! Therefore, as a lifestyle investment, it is phenomenal and astute buyers rarely allow these homes to be placed on the market.
Other areas, for example, the Angola area, have resale homes from $ 10,000 for a small repairman-top on a small lot rented at $ 270 a month to new homes on much larger lots, big houses, for $ 70,000 to $ 90,000 in lots that generally rent for less than $ 300 a month. A double-size corner lot rents for $ 400 a month and could have a many-bedroom home with decks, porches, a garage, and even spare space. Angola Beach Estates and Angola Beach and Angola Estates are well established communities with pools, security, substantial community management, and much more. They have community centers, boat docks, launching ramps, boat storage areas, and a list of services that are not available in many other communities.
What a range of values: Resales from $ 10,000 to $ 80,000 and new homes from $ 40,000 to $ 80,000 or $ 90,000 for a real show that stops the extravagance. Now you know why people are so willing to buy and live in land rental communities! You get a wonderful lifestyle for much less than you can buy anything, even remotely similar, where you don’t rent or rent the land.
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