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Feb
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| Subject: |
Leased Lots
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Date:
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5/10/2005 6:51:55 AM
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APC is offering up for bids 30 Lake Martin Lots. All are in Tallapoosa County, Pleasure Point area. Think that is about the same number as in past years. Unusual that they are all in one general area of the Lake.
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| Name: |
noagenda
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| Subject: |
Leased Lots-where?
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Date:
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5/10/2005 9:18:03 AM
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What is the process for getting information and location? is it basically an auction to highest bidder? Being that they are all in one area suggest a developer may be the target audience.
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| Name: |
Feb
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| Subject: |
Leased Lots-where?
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Date:
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5/10/2005 12:38:52 PM
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Hi noagenda - Go to the top of the Forum page and use the search funciton, magnifying glass, and enter something like "leased lots". Been a lot of past discussion on the process. Yes, the high bidder (minimum bid $1,000.00) gets the opportunity to enter a long term lease agreement with Ala. Power Co. (APC). You can contact APC and they will email or mail you a copy of the bid package. This will give you the exact location of each lease lot, size, water frontage, monthly rent amount and all the contractual language.
Don't think it is aimed toward developers or any specific party, but I believe APC will not auction lots until they have road acessibility.
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| Name: |
fulltimer
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| Subject: |
Leased Lots
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Date:
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5/10/2005 3:41:01 PM
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If you wish to be put on the list to receive information when lots are available for lease, write to Alabama Power at Post Office Box 540, Clanton AL 35046-0540 or call 205-755-4420.
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| Name: |
MotorMan
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| Subject: |
Leased Lots-here
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Date:
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5/10/2005 5:46:40 PM
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You can get an e-mail version of the bidding process with forms by sending an e-mail to: chayes@southernco.com and request the Pleasure Point leases.
This is most likely Candy Hayes. She handles most leases.
URL: Southern Company
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| Name: |
JIM
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| Subject: |
Leased Lots-here
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Date:
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5/10/2005 7:44:57 PM
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Make sure that you read the fine print, check on who is responsible for the taxes on the land. To me improving property that you do not own is not very smart.
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| Name: |
Feb
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| Subject: |
Leased Lots-fine print
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Date:
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5/10/2005 9:37:54 PM
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I would also prefer to own the land - but:
1. The fine print says that you can sell the leased lot once you have built a cabin on the leased lot. Several investors have done this and made a reasonable profit out of the deal.
2. The fine print states that as long as you abide by th contract that you can not be forced off the leased lot without being reimbursed current market value for the improvements.
As in any contract you had best read the fine print to understand your rights and the rights of the other party. APC provides the fine print with the bid package.
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| Name: |
Maddog
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| Subject: |
Leased Lots-fine print
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Date:
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5/10/2005 10:06:11 PM
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My brother has a place on Lake Jackson in Georgia. Lake Jackson is a Georgia Power lake just like Lake Martin is a Alabama Power lake. He ask me what the rates are on leased lots on Lake Martin. Can anyone give me a ballpark amount on an average leased lot per year or month? Thank you for your help in this matter.
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| Name: |
Feb
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| Subject: |
Leased Lots-fine print
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Date:
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5/10/2005 11:01:08 PM
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Hi Maddog, The 30 lots for this year's lease auction range from $325.00 to $425.00 per month. The size of lot, ft. of water frontage and location are probably the discriminators APC uses to set the individual lots monthly lease rate. These rates can escalate (I believe) after the first five years based on an inflationary index. Another thing to study in the fine print. Your bid amount is a sunk cost and does not apply toward the monthly lease amount. The bidder selects which lot they are bidding on and can bid on several lots with individual bids. If you do not win the bid then your bid check is returned to you.
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| Name: |
Maddog
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| Subject: |
Leased Lots-fine print
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Date:
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5/11/2005 5:39:22 AM
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Feb......thanks for the info. I'll pass it on to my brother. I think his lease is a lot lower than what you quoted.
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| Name: |
roswellric
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| Subject: |
Show me the money
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Date:
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5/11/2005 8:55:22 AM
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Seems to me that the payment of $400 over 30 years (the life of a mortgage) would support an equivalent of about $75,000 of lot value if you financed the lot rolled up into the mortgage.
But the topper is that the future value of the front end money of say $10,000 over a 30 year period would be about another $70,000 so now we are near $150,000 total.
And at the end of the 30 year period if the power co sold the lot to you for $??? then what?
What a sweet deal for the Power Company.
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| Name: |
JIM
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| Subject: |
Show me the money
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Date:
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5/11/2005 9:19:23 AM
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Roswellric, could not have stated it any better, it is a win win for APC. The Leasee has to tow the line, and has everything to lose while the power has nothing to lose.
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| Name: |
Feb
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| Subject: |
Show me the money
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Date:
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5/11/2005 9:38:13 AM
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Hey Guys (RR & JIM) - I am not trying to defend APC or anyone else since I do not have an interest or affiliation, but isn't that the case with any lease or rental property. The owner gets the rent and maintains title to the property and the renter gets the use of the property. It is rather straight forward, and yes like with any rental and most everything else in life the prices goes up with time. With this lease agreement at least the renter can sell the lease after improvements (cabin being built).
I will be willing to wager that everyone of these lots end up being auctioned off to some very happy people. Lake Martin property is an extremely hot commodity, but still a real bargain. Would not be surprised to see it doubled or tripled in value over the next ten years.
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| Name: |
roswellric
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| Subject: |
Show me the money
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Date:
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5/11/2005 10:14:45 AM
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Oh you are right... I didn't mention there is a good reason for leasing- it's more affordable. You get control of a lake lot for the equivalent of a lot for $75K or so in monthly payments. Even the current front end auction $$ compares well to the front end lot costs over buying since you would have to put down 10-20% on the lot. Can't buy anything good for less than $150K now. I just don't like the economics of the way AL Powers has it structured.
Now if there was little front end money and leases were decided by a lottery and the payment was a little less with some caps then it would be more interesting.
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| Name: |
MotorMan
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| Subject: |
Show me the money
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Date:
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5/11/2005 3:01:59 PM
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APC leases:
It is very simple. In 60 or so years, your house will be a "tear down" (maybe sooner) and a lot lease holder will have nothing. Southern co (SO) owns APC
I own Southern co. stock and I think this will raise SO stock prices. Now, 95% of SO income comes from electric sales. In 20 years this percentage will fall as land rental incomes raises.
A builder freind bought his lease when it was $100/year. It would now be $3300/year and he might have to sell.
There are some ratty houses for sale around $240,000. Buy one, tear down the house (about $10,000) and build new.
In 20 years\ a Lake Martin lot may be worth a million.
If anyone doubts this, look at Wisconsin's Lake Geneva. 50 years ago a cottage sold for $40,000. now a million
I would only lease land to plant a crop or hunt on.
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