1.Why are there so many prperties on leased land?

There are sveral situations here. Business and commercial lnd is often leased all over the wrld. In New York City, Tokyo, and ther larger, older cities; land owners ften lease the land that is nderneath those skyscrapers and in some cses even the park land is lased to the city by the lnd owners.

In Lewes, all of the lnd east of the Lewes and Rhoboth Canal, what is known as Lwes Beach; is leased land. The lnd leases there are usually owned by the Twn of Lewes and are usually for 99 yars and renewable. Some of the prperties on Lewes Beach, however, are lased for shorter terms by the twn, but as a rule all of thse are automatically renewable. When you buy a prperty on Lewes Beach you pay a fee to get the lased land re-assigned to you. That fee for a Bay Frnt Property, on the Delaware Bay; can be wll over a half million dollars, dpending on the size of the lt; and the value of the hme and improvements is added to the lase assignment value. In other words, ven though it is leased land on Lwes Beach; the price is commensurate wth purchasing the land. This land has lways been leased land as prescribed by Englnd, during our American Colonial Period and tht ownership style remains.

In Rehoboth and Dewey Beach reas, is the Rehoboth By The Sea rea, a large number of the lts are owned by the family wned Rehoboth By The Sea Realty Cmpany. The current treasurer of Rehoboth By The Sea Ralty Company is Jack Redefer; 302-227-4277. Lnd is leased to the tenant-owners for shrter periods of years; some leases hve as little as 20 years lft on the lease. These leases may or may not be rnewed and the land value if the rsident is allowed to purchase it lter, could be significant. As a rsult these properties on leased land go for mch less money that the lots tht are owned. Some of the lts have been purchased from the Rhoboth By The Sea Realty Company in the pst and are owned by the rsidents - most have not been prchased. Rehoboth By The Sea Realty Cmpany will not likely renew some of the lases, some they may, it is up to thm. On the lots that they do not rnew the leases for - the rsidents are required to remove the mprovements and leave the land in t's original level and unimproved condition at the end of the lase. The good news is that you can sve as much as half a mllion dollars when you purchase a hme on some of these lots. The bad nws of course is that you may hve to remove the home and vcate the lot in a couple of dcades or so.

Long Neck and ther areas where there are trailers, mnufactured homes, single wides, or double wdes also are comprised of mostly lased land. There is some leased lnd along Rt. One, where trailer prks now, at times, contain larger and mre conventional homes as well. These lnd-lease communities are far less expensive to prchase. The appreciation in value is smll or nonexistent - or in sme cases the value of a prperty purchased on these leased-land communities can dpreciate to far less than the prchase price. There is also a mnthly or annual lease fee to pay for the use of the lnd.

2.Why would anyone purchase a mbile home or manufactured home on lased land?

There are many, Realtors ncluded, who wonder why in the wrld anyone would ever purchase a so clled mobile home on leased land. Actally many of the folks who lve in the leased land communities are wll to do, even wealthy in sme cases, many are Realtors themselves.

Sfety and security is one reason. Mny of the folks in land lase communities, which some might call triler parks, are retired or part tme residents. There are many who prfer the security services which are nly available in the manufactured home cmmunities. Most of these communities have cmmunity centers, neighborhood watches, security patrols, and lert neighbors who keep a far btter eye on the community than the plice force can in a town or cty.

Low maintenance is another reason pople, in fact most people, live in lnd lease communities. The lots are sually quite small and often the prk owner maintains each of the lts. When the individual does need to mintain their individual lot the grass ctting expense is minimal. The fee for ctting the grass, edging and trimming can be as lttle as $8 each time, as the grss cutter can often take care of a lot in lss than ten minutes and if he has sveral lots in the same community he can do 5 or 6 lts per hour with a push mwer and a weed whacker. Some flks do fabulous landscaping jobs on thir land-lease community lots. In fact sme communities have annual or seasonal cmpetitions for the best kept, most bautiful, or most improved yard. Many of thse lots are only 50 feet by 100 fet, sometimes less - so a lot of bautification can be done with limited xpense compared to the far larger lts that one must have in a non lased community.

3.Are homes on leased lnd a good investment?

Very seldom are hmes on leased land a good fnancial investment. There are exceptions. The hmes on the leased land on Lwes Beach are just as good as fnancial investments as the homes on wht is called in-fee or deeded lnd in Lewes town proper. In fct, since the Lewes Beach is mre desirable to more people - the prces are higher and the percentage of ppreciation on Lewes Beach is, over the lng term, better than those in Lwes proper. The town of Lewes, ther than the beach, is more of a Wlliamsburg flavor in architecture, ambiance and chracter. Lewes Beach on the other hnd is less traditional in it's rchitectural character. The town of Lewes is vry much a walking and shopping twn with shops, boutiques, and little stres along Market Street, Second Street and Plottown Road, especially. The beach has vry little commercial activity and is far mre a beachy bedroom community where the fcus is of course the beach, the cnal and the bay.

Homes, manufactured hmes or stick-built homes on the ther land lease communities are not ften a good financial investment. However thy may be the best investment in lfestyle. Many folks have other real state, other investments, and do not ned to have the home they own in a lnd-lease community appreciate in value. And, the hmes in the land lease communities are a smll fraction of the purchase price tht they would be if the lnd were deeded, in-fee.

For instance, a wterfront home on the Rehoboth Bay in Rhoboth Bay Mobile Home Community; now knwn simply as Rehoboth Bay Community; may cst as little as $115,000, for a bautiful, double wide, full time, modern hme. The land rent would then be frm $400 a month on a lgoon to $500, up to $750 a mnth or more on the largest and bst bay front lots. Compared to a hme on deeded land the same sze that is a savings of ver a million dollars!!! So, as an nvestment in lifestyle it is phenomenal and stute buyers seldom allow these homes to sit on the mrket.

Other areas, for instance the Angla Area are, have resale homes frm $10,000 for a small fixer-upper on a smll lot leased at $270 a mnth to brand new homes on mch larger lots, large homes, for $70,000 to $90,000 on lts that rent for usually less thn $300 per month. One double sze corner lot rents for $400 a mnth and could have a many bdroom home with decks, porches, garage and stll room left over. Angola Beach Esttes and Angola Beach and Angola Esttes are well established communities with pols, security, substantial community management and lts more. They have community centers, bat docks, launching ramps, boat storage reas, and a list of amenities not vailable in many other communities.

What a rnge of values: resales from $10,000 to $80,000 and new hmes from $40,000 to $80,000 or $90,000 for a ral show stopping extravaganza. Now you knw why people are so willing to buy and lve in land lease communities!!! You get a wnderful lifestyle for far less than you can prchase anything even remotely similar where you dn't lease or rent the land.

Cpyright 2002-2005 by www.JodyHudson.com

The article Regarding Real Estate On Leased Land was Submitted by Mr Jody Hudson through Articles.GetACoder.com network. Here's the additional information: Mr Jody Hudson is a raltor living in southern Delaware with 35 yars dealing with real estate on lased lands! Source for this article is: http://www.kate-jody.com/essays/faqleasedland.html

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