There are two aspects related to understanding the value of Baywood land leases: the value of the amenities included in the lease and the savings associated with not needing to purchase the land. In almost every Buyer's scenario, Baywood residents are "cash positive" when leasing the land when compared to communities wherein you need to purchase the land.
As a Baywood resident for the past 10+ years, the amenities are outstanding. HOA fees in nearby communities for comparable amenities ranges from $4K to $6K per year. If you happen to be a boater, the value is even greater since Baywood residents can lease a slip in our sister communities for $950 per year versus $3K or more for a private boat slip.
In terms of the savings associated with not needing to buy the land, this varies based upon whether you're a cash buyer or need financing. The following is a good rule of thumb for understanding the value of an improved lot in a comparable community: Interior lots are valued at approximately $100K; wooded and/or pond view lots are worth $200k; and golf course lots are worth $300K and up.
My lot is a private wooded lot and I'll use the $200K for this example. For cash buyers, that's $200K
that you retain in other investments and over time, a conservative investment portfolio should average a 5% to 7% return. That's $10K to $14K in yearly income. Wooded and pond view lots have an average lot rent of $9,500 annually. So, between the value of the amenities you receive and the return on your investments, paying land rent in Baywood is the best deal around.
We needed financing when we purchased in Baywood and by not needing to finance the cost of the land, we were able to go with a 15 rather than a 30 year mortgage. The differential in principal paid on a 15 versus a 30 is huge. For buyers needing financing, they too have a cash positive experience by purchasing in Baywood.
Run the numbers and see for yourself!