Is buying an RV lot a good investment?

[NWRV]

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 us with some feedback on the pros and cons about buying a lot? Is it a good investment? Anybody know about resale? We understand the financial decisions and costs of owning vs leasing as it is much like a house but it would be really great to get some feedback. Thank you!

[br549]

We full time and traveled and spent winters in several Arizona areas. We liked the Palm Springs area of California in the winter the best. So much greener than Arizona. Purchased a lot in a small, friendly park because we liked the comfort of knowing we could arrive and leave whenever we wanted and would have a space. Another plus is that it is south of I 10 and at the east end of the valley so less wind than other parks in the area. Love it here and would post a picture if I knew how.

As for good investment, see Bumpy's post.

[D_E_Bishop]

Here's one we saw this week. Central Oregon Coast. ocean views from all, 6 are ocean front, electric = 20, 30, 50 amp service, water, sewer and cable TV. All have concrete pads from 52 X 22 to 60 X 22. Free WiFi, direct beach access and 3000 sq' club house.

99 year lease from $175,000 to $265,000, rent $350/month, taxes $74 to $94/ month, insurance, $30/month and the utilities are metered separately.

Don't know how it works with a purchase price and a lease price so maybe you can buy or lease. brochures didn't say. No you can't rent but the management is renting the unsold spaces.

And to comfort you even more, it's a "Top Rated Good Sam Park".

PM me for the name of the Sea Perch RV Resort. Oops!

[khogle2]

Don/Shar wrote:
Wife and I have been wintering in Yuma for 8 years. We would rent a lot every year so we decided to buy one in the Foothills. It has a brick fence all around and 2 drive lock gate in the front. We have
4 full hook-up and rent it out when not there. For us buying was no question.

That's a nice looking spot. How close to a restaurant or walmart? Noise, etc.

I considered one in that area to make trips easier to So.. Cal to visit family.

[2bzy2c]

Southern California "Condo" storage

[Don_Shar]

Wife and I have been wintering in Yuma for 8 years. We would rent a lot every year so we decided to buy one in the Foothills. It has a brick fence all around and 2 drive lock gate in the front. We have
4 full hook-up and rent it out when not there. For us buying was no question.

[NWRV]

Thank you all for the replies. This is very helpful getting everyones viewpoints, ideas and suggestions. It gives us a lot to think about in refining our search and decision. Thanks again!

[MRUSA]

Is a trip on a cruise ship a good investment? Holiday in Europe or the far East?
How about tickets to a Broadway show or the Super Bowl?

All these things are worth it only if they bring you pleasure and you can afford them. You don't expect to recoup the monetary cost.

Likewise with an RV lot.

[msmith1199]

NWRV, although those resorts are very nice another option is to just buy land and put your own hookups on it and use it like you would this resort. Just make sure you check local laws on the legality before doing this. It's not legal in most places in California, but there are some counties who allow it. I own 20 acres of land in a County that doesn't allow it, but I camp on my land all the time in my RV and never had an issue. My neighbor up there lived in his 5th wheel for 5 years before eventually building a house.

[2gypsies1]

We've full-timed for 17 years and to us, owning an RV means traveling and seeing the country. It's not about going to one place year after year. If you want to do that then buy a Park model trailer and just leave it in a park. But everyone is different - that's just our feel on it.

[pawatt]

I would say not an investment but a lot of satisfaction in customizing the lot to your liking within the rules of the POA.

[rockhillmanor]

Not anymore. Just like the housing crash rv lots took a BIG hit. Before you could buy one and flip it and retire on the money. There were people 10 deep waiting in line to buy it. That ship has sailed.

If you buy one don't even think of making money on when it comes time to sell it. The market is still flooded with them from the real estate crash. Your question should be directed to RV'ers who have them what they paid for them during the real estate boom and/or have sold them in the past couple of years. THAT will give you more food for thought about buying one. JMHO.

[RJ_2003_Traditi]

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

[TechWriter]

Bumpyroad wrote:

NWRV wrote:
Could anybody help us with some feedback on the pros and cons about buying a lot? Is it a good investment?

nothing relating to a RV is a good "investment".
bumpy

Good one!

[Tom_N]

Like anything RV related, not an investment.

[John___Angela]

Some good replys on here. For us it has been a good decision but it depends a lot on the person. Couple of things I see repeated fairly often that I think are incorrect.

1. RV lots are good for people who only want to stay in one spot. I see it as kinda the opposite. If its a nice lot in a good location it is easy to rent it out either privately or through a resort program. That covers expenses when on the road and when you are ready to settle down for 5 or 6 weeks head back "home".

2. Unless there is still some level of ownership by the developer the RV park can not be sold any more than a subdivision of houses can be sold. There is no "owner". All the lots are individually owned and HOA fees pay for common amenities and services such as golf courses, pools, club houses, tennis courts, fitness clubs etc. This is no different than any other gated community with amenities.

We were fairly young (42) when we bought so for us it is a no brainer not to rent. Rent is upwards of 1500 dollars a month where we own in the south and not far from the that at our northern spot. Prices will go up and down according to the market but at the end of 10 years you could probably sell it for zero dollars and still be ahead. For full timers planning on being in the lifstyle for awhile they can also be part of a well planned exit strategy.

Good luck in your decision process.