Forum Discussion
JaxDad
Jan 25, 2023Explorer III
From a business finance point of view I think the “subsidy“ idea is being misused, or possibly misunderstood.
If 2 different land owners are looking to calculate their “costs” of operating an RV park, in one case though the land has been in the family for several generations, the other just bought the land (at current market value) and has to carry financing on it, the “costs” will be VERY different. Ditto a park, public or private, that built decades ago and the servicing costs are now paid for.
That is NOT to say the long term owners are “subsidized” in any way, their costs are just lower.
If 2 different land owners are looking to calculate their “costs” of operating an RV park, in one case though the land has been in the family for several generations, the other just bought the land (at current market value) and has to carry financing on it, the “costs” will be VERY different. Ditto a park, public or private, that built decades ago and the servicing costs are now paid for.
That is NOT to say the long term owners are “subsidized” in any way, their costs are just lower.
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