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What is the attraction to being an RV lot owner?
I am sitting in the bus in lot 56 in the Bluewater Key RV Resort in Key West and look out across the water, seeing gray skies and listening to the howling winds. Another fine day in paradise.
I have looked at the parks web site and learned that there are a total of 81 sites. Most of them have waterfront. Either canal or on Lower Sugarloaf Sound.
I did also learn that 24 sites are for sale at prices ranging from $225,000 to $849,000 and needless to say, that 225K buys you only an offwater site, whereas the canalfront lots start in the high 300’s and the sound side lots start around 500K.
Being a lot owner means that you also pay annual dues of $3300, taxes of $3-6000, water and electricity of about $1800-3000 and lot maintenance of about $800
That adds up to as much as about $15,000 per year! A lot of money for the privilege of being an owner.
Perhaps, buying when the market is depressed or when a new park opens, it could be viewed as an investment. However, even now when real estate is cheap, earning $15,000 today just to cover expenses, means, at this resort, you have to rent your Sugarloaf Sound waterfront lot for 100 nights. Is this even possible?
On the other hand, owning a bus or any RV, you have it to travel and that means, you do not spend very much time on your lot, anyway.
So why buy?
cheers,
Ronald
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10 Replies
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In fact, at this resort, you would have to rent your lot for at least 118 nights because the park takes a 15% commission.
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Ronald,
If we were honest with ourselves and looked at Prevost ownership with the same perspective as the business or financial decisions we made along the way to Prevost ownership none of us would likely own our coaches. None of our Prevost purchases makes sense. Dave Ramsey would likely have a conniption if a caller asked for advice about buying a Prevost.
But I seriously doubt if any of our members regrets Prevost ownership and many among us have owned multiple coaches, indicating we place a very high value on the lifestyle. I think the same can be true of RV resort lot ownership (speaking in general terms). Whatever the costs, both the purchase price and the ongoing expenses there are many folks that want to own lots more than they want their money. I am not likely to own a lot because we like spending time at many different venues and we do not full time in our coach. But I sure can understand the many owners who do own lots and treat them as their full time home, or their special home away from home.
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Jon,
I think you nailed it.
We purchased our lot as a place to call “home” when we decided to live full-time in the coach following retirement. We figured that we gotta live someplace… might as well be something that fit our lifestyle.
That being said, I believe that most of our owner neighbors see their lot as they would any other vacation property.
There are still the tax advantages (for what they are) and the potential to realize a modest appreciation of the property value as with any other vacation home.
But as you stated so eloquently, there is little about bus ownership (and the RV lifestyle) that passes the Economics 101 test.
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Ron,
We spent Thanksgiving at Bluewater a
few years ago and although the place is gorgeous, the wind howled and
we had to have the plastic sides on the Tiki Hut zipped in just about
the whole time we were there. Sure couldn’t beat the view though.As for lot ownership, we like to keep
moving and staying at different places. If your a full timer, owning
a lot seems to make sense. For us, if we owned a lot, we would feel
as though we would have to go there every time we used the bus.We have plenty of friends who own lots
and really like it, so it all comes down to personal choice. -
Bluewater was our choice for a 2 week stay several years ago. As many of you know FL weather is a crap roll during the winter In our case perfect the whole time at Bluewater. I’am with Tom on keeping the wheels rolling finding new spots as each location offers something different.
We own a 2nd home at it’s a Prevost Marathon and offers us the ability to move when ever we like.
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We almost jumped . Mainly to establish Fla residency. Then did the math. Like pointed out. Impact tax? among others. Just a week ago ask some friends at Wilderness if they would like to do 3 month SW Usa Trip with us next year. They passed because they said they needed to use their lot. Or Maybe I smell bad! They bought before the crash and it has recovered in value to about 50% of their purchase price. Their taxes haven’t went down and the association fee keeps comming etc. We rent there by the month ($400per) for 2 months a year. Their association fee is $1440 per yr. One owner actually told me you would be a fool to buy. To much hidden cost. I really like the park! Now 5 yrs in same place I’m becoming Bored with the area. For What it’s worth. If I had the $ and it was a growing demand market maybe short term. Bob
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Some of the things we do in life have little to do with common sense. Heck, I do own a sailboat and do not ask me how much money I have sunk into it (poor choice of words, I know) – go to http://www.bremerspeck.com
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Ron, just left Bluewater a week ago was in lot 76, wind blew like crazy for the whole time had no sides on the Tiki , am back at Riverbend, which we really like and have come close to purchasing, but each time back away and rethink the thing out and at this time in our lives ownership just does not work for us. We like to travel, and enjoy nice resorts and at the present it is not a problem to get reservations about any where with a little advance notice. Also I guess if you full time ownership would be something to consider, you know a place to hang your hat so to speak! Gary
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Lot ownership is similar to home ownership. You always have your lot available when you want to use it. You can fix up the lot with landscaping and pavers to suit your taste. When you are not using the lot you can rent it and opffset some of your carry expense. Our population is growing older and more and more people are retiring, and RVing is expected to explode over the next few years. There are few if any new RV resorts being built in Florida. In the not too distant future many people are going to find they cannot find rental sites during “the season”. People who buy now will realize good increase in the value of their lot in a couple of years, in my opinion. Our economy has always gone up and down and then back up. This time will be no different. Now is a great time to buy a lot in quality resorts!!
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Ed,
Well said.
And, it is definitely a buyers market!!
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