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
I struggle with the term buying a lease. Think of renting a house. You enter a lease but don't buy or make a substantial payment. Why would an RV park be different? Scaricity of supply enables them to do so I guess. Or perhaps it is a very long term lease, i e 99 years in which case I could see it having value.
Looking at the options,
Buying a share
Advantages. As you and other owners have covered the capital costs the annual fee should be smaller than a comparable leased site.
You have a say in decisions impacting the park.
You do have a saleable site with potential to recover costs of improvements..
Disadvantages. Large initial cost
Potential for additional costs for improvements or unforeseen events caused by floods, fire, wind etc. these could be considerable.
You are locked into a specific site even if your neighbour does run "party central".
Buying a lease I think you have to really examin the lease or get professional help to understand what you are buying. If it is a long term it may be fine.
Annual lease.
Advantages. No large capital investment. Additional costs (risks) are for the owner. Easy exit
Disadvantages. No say, higher annual fees. Risky for major improvements.
You are looking at a very nice area but it is a long way from any major centres. I think this helps keep values lower. Great for buying. We with other family members have a recreational condo in Kimberley. Despite excellent upkeep & improvements we could not sell it today for what we paid 11 years ago. Like an RV it has been a fun toy.
Are you looking for something to set up full time or just a retreat?
Looking at the options,
Buying a share
Advantages. As you and other owners have covered the capital costs the annual fee should be smaller than a comparable leased site.
You have a say in decisions impacting the park.
You do have a saleable site with potential to recover costs of improvements..
Disadvantages. Large initial cost
Potential for additional costs for improvements or unforeseen events caused by floods, fire, wind etc. these could be considerable.
You are locked into a specific site even if your neighbour does run "party central".
Buying a lease I think you have to really examin the lease or get professional help to understand what you are buying. If it is a long term it may be fine.
Annual lease.
Advantages. No large capital investment. Additional costs (risks) are for the owner. Easy exit
Disadvantages. No say, higher annual fees. Risky for major improvements.
You are looking at a very nice area but it is a long way from any major centres. I think this helps keep values lower. Great for buying. We with other family members have a recreational condo in Kimberley. Despite excellent upkeep & improvements we could not sell it today for what we paid 11 years ago. Like an RV it has been a fun toy.
Are you looking for something to set up full time or just a retreat?
