RV Lot in Canada - Lease vs Buy
Are there any Canadians here that can explain the advantage of "buying" a lease? I guess we still don't understand the full difference between leasing and buying. For example: Some Parks sell l...
Forum Discussion
trigley wrote:
A lot of Parks are bareland condominiums or stratas as they are referred to in B.C. You own a share in the condo which in turn owns the land and common facilities such as clubhouse, washrooms, roads etc. You have use of a specific lot. Similar to a regular condo the shareholders get to elect the board and vote on items such as changes, dues etc at annual meetings.
You mention resorts with deeded titles. Have you found many? The subdivision would have had to be approved by the municipality. I wouldn't think many municipalities would want to be dealing with a large number of individuals when they could deal with one entity.
If you are leasing you would want to closely examine the lease to determine the terms. Is it for a fixed term? If so, can it be renewed?
If it isn't fixed likely either you or the landlord could cancel with notice. If the landlord cancelled what would happen to your improvements if they are fixed.
I can think of one case where the owner decided to expand his golf course and gave notice to renters to vacate. The park had been there for years and many had substantial improvements. As it happened the economy went south and the expansion did not happen but it could have.
Unlike a condo you would have no say in changes, accept them or move.
The problem with many of the condo parks in this area is the shares are extremely expensive, usually 6 figure for bare lot. That may radically change with oil at $35 a barrel.
Another thing to keep in mind is that the county or municipality will have set certain zoning and occupancy periods for the park. Make sure these meet your requirements
I am far from a legal expert on these matters but these are a few observations I have made over the years.
Excellent information and you have outlined several considerations we had not thought of.
I do see that BC prices are tending on the lower end of the pricing scale, especially around the Cranbrook and Creston/Yahk areas. Some are open year round, and one that I called, does offer "purchase" of a share of the development. You make improvements and when you sell, you ask a price accordingly.
Others that I called are "buying a lease", also with improvements for a set price, for example, Moyie Resort Group at Owls Nest and Eagles Nest. I guess if one wants security for the future, buying a lease would not be the wisest option? But buying a "share" would be?
