Is buying an RV lot a good investment?
Hi My wife and I just took a month long trip through California and Arizona. We are planning to spend next winter down there. We have looked at a few resorts with lots for sale. Could anybody help ...
Forum Discussion
Example of where we are now in SoCal:
Lot Cost - $50K for the cheapest lot in a beautiful resort with golf, tennis, etc.
Assoc Fees - $4800/yr
Prop Tax - $750/yr
My investment returns average 6% per year so I would lose 3K / yr on the return on $50K. You may do better with a desperate owner that will carry the paper. So Total Cost of Ownership per year is 8500 / yr. The prime season here is Jan - April. You can rent through private owners for 1500 / month. Forget about counting on any return the other eight months unless you get lucky once in a while. If you are able to rent it, don't forget to deduct prop management fees.
The bottom line is it is cheaper to rent vs buy. And your lot may be hard (impossible) to sell when you want out. And don't count on any appreciation in the post economic meltdown that we live in today. It may appreciate but don't count on it. The up side is if you find a place you really like and you don't mind going back to the same place year after year, you can form lasting friendships with the other owners that are doing the same thing as you. And you are guaranteed to have a nice spot every winter unless something catastrophic happens.
Conclude what you will from this. I say no to the question of good investment. But that question is only a small part of the overall decision.
RJ
Lot Cost - $50K for the cheapest lot in a beautiful resort with golf, tennis, etc.
Assoc Fees - $4800/yr
Prop Tax - $750/yr
My investment returns average 6% per year so I would lose 3K / yr on the return on $50K. You may do better with a desperate owner that will carry the paper. So Total Cost of Ownership per year is 8500 / yr. The prime season here is Jan - April. You can rent through private owners for 1500 / month. Forget about counting on any return the other eight months unless you get lucky once in a while. If you are able to rent it, don't forget to deduct prop management fees.
The bottom line is it is cheaper to rent vs buy. And your lot may be hard (impossible) to sell when you want out. And don't count on any appreciation in the post economic meltdown that we live in today. It may appreciate but don't count on it. The up side is if you find a place you really like and you don't mind going back to the same place year after year, you can form lasting friendships with the other owners that are doing the same thing as you. And you are guaranteed to have a nice spot every winter unless something catastrophic happens.
Conclude what you will from this. I say no to the question of good investment. But that question is only a small part of the overall decision.
RJ
