Cost Comparison Regarding Land Leased vs. Deeded Homes
1. You don’t pay for the land. You can invest the cost you would pay for a lot in savings or for example an interest bearing retirement account. Therefore, you will accrue interest and still have your nest egg should you need it for discretionary or emergency purposes. This allows you to use your assets to your best advantage.
1. You will more than likely tie up your hard earned retirement fund and pay $35,000 minimum for a lot in a quality manufactured home Community which includes a total amenity package & recreational facilities like the leased land Communities. The only one this arrangement benefits is the Developer.
2. You do not pay property taxes. You
instead pay Tangible taxes of normally less than
$125 a year. You also pay decal fees of normally
less than $150/yr.
2. You will pay property taxes of $1,000 or upwards
3. You do not pay maintenance, Home Owners
Assoc. fees and assessment fees because
everything is included in your land lease. The
Community provides the security and maintenance
of the clubhouse, pools, public areas, facilities and recreationalfacilities, plus maintenance of all of the common areas throughout the Community.
Depending on the Community your trash, water,
sewer, and lawn care may be included.
3.You will pay Home Owners Association fees and maintenance fees of $180-$500/mo. You are
responsible for and accessed for your share of
expenses for the upkeep of the community, the streets,
street lighting, pools, public areas and facilities.
There is no cap on these assessments or fees. You
will also pay extra for your trash, water, sewer,
and lawn care.
4. You have continuing professional management
with an interest in the Community who sets
reasonable rules and regulations to maintain a
quality community. This gives you the assurance
that Community standards will be carefully
4. When a community is sold, the developer has no
further interest in it. Consequently, you may have
bought into the product of his short-term intentions.
Once a land owned Community is built out the
Developer transfers the operational and
maintenance responsibilities to the lot owners and
that is you.
5. In a land lease community, the developer usually
sells the homes that will be occupied within a year or
less, assuring controlled Community growth.
5. You may be surrounded by poorly maintained or
vacant lots, because in many Communities, lots are
initially sold but nor built on until years later.
6. High minimum standards are set for the homes
being built in land lease communities, which in turn protects your investment.
All homes must pass code restrictions.
6. You have little control over the quality or value of
homes being built.
7. The community retains legal liability of all common areas andfacilities.
7. You now share the legal liability of all common
areas and facilities. You are now included in any law suit the Community could encounter.