General Question about rent increases in parks

[Debbie]

I've been trying to figure out the best place to relocate, cost of living and tax wise. I've been trying to find out property tax rates in counties I am interested; How they work how often and how much they could increase.
It wont help me much to buy a home under 200K somewhere at age 50 if by age 85 the value is say 700K and my property tax is based on that. On a fixed income I wont be able to afford huge property tax increases.

That is making me think again about leased parks. Does anyone in know, in general, how leases work? How often rents are increased and by what percentage? I know it can vary state to state and park. I'm just looking at how those cost increases in general compare vs possible property tax increases (if you figure real estate on average increases 6% a year).

I've shyed away from the leased park idea for fear that when I get old they could sell it out from under me and I'd have nowhere I could afford to go.

Everything has risks and pro's and cons I'm just trying to make the best decision for 50-90 so I dont wind up a bag lady somewhere.

Thanks

[Kevin C]

If I am not mistaken, Alabama has not property tax for people over 65 and no state income tax on retired pay. Also, some places like Tulsa County, Oklahoma allow seniors to "cap" their property tax depending on their income.

[Brian Guidry]

Here in Calcasieu Parish in Louisiana, a double wide on your own property, permanently set, qualifies for a homestead exemption and no property taxes are paid on that homestead, no matter how much the value increases.

But I agree with CK. If you can afford to buy your own property do it. Think about it this way...the $300 or $400 bucks you'd be spending on a lease could go toward payments on your own land. I've lived in MH for years and there is nothing nicer than having your own yard!

Best of luck to you.

[Gene]

Florida property tax laws protect current owners from increases in property taxes. It is called "save our homes". My home in Florida was taxed at $650 annually after owning it 17 years. When I sold it the new owner then began paying taxes on the new and current value and his taxes were $2400 a year.

Your property taxes will go up annually like anything else but not in line with value growth - once you own it. And remember there is no state income tax so you want to include that in your overall taxation considerations.

But property taxes in Florida are high. Every county is different but generally property bought for $200,000 might be taxed at 90% or $180,000 less your homestead exemption of $25,000 so the taxable value would be around $155,000. Your taxes will probably be between 1.5 - 2.55 annually or $2325 - $3875. Marion county is one of the highest taxing counties in the central part of the state. You can read about Fl property taxes at

http://www.myflorida.com/dor/property/appraisers.html

By the way Alabama does have low taxes but I think they do tax income not in structured retirement accounts but not sure. Also beware of the tornado hazard in certain parts of Alabama. Of course hurricanes in Fl so what is one to do.

good luck

[Liz]

I retired to NH in a lovely manufactured home park. However, the park rent goes up each and ever year on the average of $15 - 25.00. There are no taxes here at all. Except the property tax, which is extremely high.

I think you should own your own property, rather than being in a park.

Good Luck!

[Chris]

Here's my 2 cents as a real estate agent, and MHP owner. The leased lots are a great way to have your own home if you can't afford the land (and all the improvements needed). It's often cheaper than renting a home here. Our lot rents have not been increased in several years, although we're considering it this year due to the anticipated increase in our property taxes (coastal NC property values have skyrocketed) - so you'd get hit by the property taxes one way or the other. At $130/month, it's still more affordable than most lot payments. That said, we've also seen 3 long-time mobile home parks here bought by developers as land becomes more valuable. The latest one has been there about 20 years, some of the homes really can't be moved, and the owners have 180 days to vacate. It can happen if you don't own the land.

[Robert]

When the double wide home I purchased was paid in full after 15 years I thought, well great, now I can put that money aside. Instead the Georgia park I lived in was sold four times, in about six years. The increases in lot rent, from $67.50 at the start of my note, to $225.00, in the four years the park changeds owners, soon exceeded my original loan payment on the double wide so I was right back where I starte. Except that now I was just llining someone elses pocket. After several managers, who were nothing more than disgruntled cashiers for blind trust out of state owners, I decided to give the double wide to someone who needed a roof over his head. The high lot rent made selling the double wide an un attractive proposition for even the most desperate, and its age prevented moving it. I now live in Texas in a new single wide anchored to a slab, within city limits, on a mobile home subdivision lot that I own, qualifying me for homestead exemption. I would never recommend placing a new home in a park. I would invetsigate land/home offerings in your area.

[Gwenevere Funderburk]

Debbie, needless to say purchasing a manufactured home is much cheaper than purchasing a home (250-500 thousand). However, I agree that money for lot fee would be better put towards the purchase of your own land.

Currently, I pay $505.00 a month and water (which was not part of the original lease) as for property tax, I was lied to by the seller of my home and then I later find that they (seller) also owns most of the parks in the area.

I found that I can not write off property tax, with the exception of $5.00 a year easement taxes. The only thing I get for my $505.00 is trash pick-up and a place to place my manufactured home. Notwithstanding, that in the event of your death, though you may leave your home to your children, they may have to move the home if the park does not want them to reside there.

At present I am working with several people in my community to see about purchasing land that we can divide evenly. At $505.00 a month in 5 years I will have paid $30,300, that's money that I could be paying for my own property.