Friday, 15 June 2007

A SECOND HOME FOR UNDER $20k?

Here is an interesting article I found in the New York Times. It echoes the column I wrote some time ago about non-traditional exchange home options. I mentioned that manufactured cottages could be had for as little as $5,000. Here is a much more upscale, but still very reasonable option.

"Say trailer home and many people think of low-income housing or temporary quarters for those displaced by natural disasters. But in the last decade an upscale version has emerged, in various architectural styles.

Called park models because they can be parked anywhere, they are a maximum of 400 square feet under federal guidelines and therefore not taxed as permanent dwellings, making them an attractive option for beach, lake or mountain retreats. Manufacturers say they are having trouble meeting the demand for park models destined for private property, gated communities, resort campgrounds and even marinas.

�It�s like having a million-dollar home but at a fraction of the price,� said Luanne DeMatto, 54, the director of consumer lending at a bank in Mystic, Conn. She and her husband, Enrico, 61, a retired school administrator, placed their park model in a woodsy camping resort in Westerly, R.I., in 2002. The DeMattos pay $3,550 a year for a shaded and grassy 100-by-60-foot lot that is walking distance from the beach. �I couldn�t rent a place in the area for a week for that amount,� Ms. DeMatto said.

Though they are considered recreational vehicles, they look more like small houses. Lumber or a brick skirt around the bottom can hide their wheels, and additions, like a screened porch, can effectively double the square footage. Floor plans can include a wet bar, an island kitchen and a media room.

Smaller and less well insulated than manufactured houses, park models are intended for temporary or recreational use and are therefore considered personal property like cars and boats. But they can be winterized for use in all seasons. Costing $20,000 to $80,000, they are subject to sales tax when purchased, and depending on the state or the municipality, they may require annual licensing and registration, for fees from $30 to about $300.

Park models� affordability and their improved design from the generic boxy look of 20 years ago have resulted in a 46 percent increase in sales since 1997, according to the Recreational Park Trailer Industry Association. They can look like English country cottages, log cabins and even Modernist glass houses.

The association reported that 10,100 were sold last year. Growing demand in the last couple of years has caused manufacturer backlogs. �We�re in a real boom period,� said Roger Byce, sales manager for Trophy Homes, a park model builder in Elkhart, Ind., the Detroit of park model manufacturing.

Their popularity led to the publication of a new magazine in March called Park Model Living, which highlights design trends and reviews resorts, communities and developments that sell or lease lots to park model owners. �It�s a growing and a very upscale market that we thought deserved coverage,� said Kaeth Gauthier, who edits and publishes the magazine with her husband, Frank, once a park model owner.

Ms. DeMatto said her park model was custom-built by Trophy Homes with demilune and dormer windows. She specified the interior layout, down to the placement of electrical outlets, and added a 400-square-foot screened porch. The camping resort where it is situated has a clubhouse, a pool and a golf driving range. �It�s country club living,� said Ms. DeMatto, who spends almost every weekend there from May through October.

The campsite fee includes water, but the DeMattos are billed separately for electricity and cable television service, which were hooked up the same day their park model arrived five years ago, towed by a heavy-duty pickup truck. The unit has central heat, air-conditioning and all major appliances except a stackable washer/dryer, which is an option in many models. There is Berber carpeting in the living room and bedroom and ceramic tile in the bathroom and kitchen.

Kristine and Peter F. Kilmartin�s park model is on oceanfront property in Point Judith, R.I., about 25 miles east of the DeMattos�. It has hardwood floors, track lighting, two sliding glass doors, a bay window seating area and a large kitchen with an island and stools. The unit also has surround-sound speakers inside and outside, where there is a deck and patio...

The number of park model communities is growing. They charge monthly co-op fees of $150 to $500 and are being developed throughout the country, but particularly in areas that are attractive for vacation or retirement homes, like Maine, Rhode Island, Florida, Arizona, Colorado, North Carolina and Texas...

Pam Schaefer, 41, a pharmaceutical representative who lives year-round in a park model floating on the Illinois River in Channahon, Ill., said 400 square feet was more than enough space for her. Her home is attached to a buoyant base, which is moored to a dock at a marina. Having lived in a 7,200-square-foot house and a 1,800-square-foot condo, she said, �larger just means more to clean and take care of.�

�I�ve always wanted to live on the water and couldn�t afford to otherwise,� said Ms. Schaefer, who bought her place last year. �This is the perfect size and no hassle or maintenance.�


Remember, the benefit of tolerating this petite home is you pay no property tax. My sister is in the process of buying a second home. She is looking in upstate New York, which is relatively depressed financially. Still, all the homes we saw carry property tax and school tax burdens of around $10,000 per year. That's a chunk of change.

I took a look at the Trophy Homes site and found that there are models that augment a 1-bedroom layout downstairs with an upstairs loft that almost doubles the floor space to about 700 square feet. Not a lot of room, but the first apartment I bought in Manhattan was that size. We even shared it with two cats, and with our baby until he was one year old.

These homes are set in resorts that include so many amenities there's no reason to be in your little house except to sleep. You can expect to find a pool, a gym, casual dining, hiking and biking trails, tennis, lounges and so on. Besides buying your home and paying for utilities, the only cost is several hundred dollars per month for "campground" fees.

I found several park models with upgrades like walnut cabinets selling on Ebay for around $10,000. There is a park model community 90 miles from Manhattan that rents spaces for about $500 per month including every amenity one could want.

If I insisted on getting out of town every weekend, I could see buying a second home, tiny and tax-free or large and expensive. But there's too much to do in New York City to flee. For now I'll stick with home exchange. My second home will belong to someone else!

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