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Name:	Island Camper -	Reply
Subject:	Alabama Power Leases
Date:	1/24/2006 5:04:30 PM

I found this old article about Alabama Power Leased Lots. I know this subject has been discussed many times on this board, but I don't remember seeing a link to any information.

I'm considering requesting the information packet this year, just to see the location of the lots and the lease payments on each. It may not be a bad option until I can afford a deeded lot of my own.

Does anybody have any personal experience with this? I'm interested in whether the bids are usually placed by investors/builders or individuals seeking a place of their own.

URL: APCO Leased Lots info

Name:	HappyCamper -	Reply
Subject:	Alabama Power Leases
Date:	1/24/2006 7:09:04 PM

Our real estate agent offered this tempting option as a way to build a much bigger house for "the same money". The problem is that you own the house but not the land. It is a lot like owning a condo. Not a problem until your building is wiped out in a natural disaster (fire, hurricane, etc) and you find you only own air & space and must negotiate with the other "owners" on rebuilding (or not). We decided to put our money in unrestricted deeded land and a tiny cabin. I hope we are right.

Name:	JIM -	Reply
Subject:	Alabama Power Leases
Date:	1/24/2006 7:27:04 PM

Newbie, you are right, never build on land that you do not own. Island Camper, forget it. ALPC has the last word and rules the roust.

Name:	copperline -	Reply
Subject:	Alabama Power Leases
Date:	1/24/2006 10:07:59 PM

We held on to our Power Co leased lot from 1964 until until they allowed us to purchase it several years ago, and all that time it wasn't much different from owning the land... in fact, we sort of felt like we did because the lease was simple and renewable. And in contrast to Russell Lands, when the Power Co did offer to sell us the lot, it was within reason and FAR less than the nearby Russell lots which were priced so high that many, if not most, of the original owners were forced to leave the Lake. Of course, Russell was growing subdivisions and the Power Co was just selling their lake shore.
As time has passed and prices have surged skyward, I know we got a bargain over those years... and it may be that the Power Co wouldn't be as easy to get along with now. But if I wanted to get a foothold on the lake and couldn't afford to buy the House and the Land all at once, I would give it consideration. I also assume that the Power Co has no reason to continue to own the lots it intends to lease, and at some point will offer the leasee the first option to purchase. But when the offer comes, their opinion of fair market value isn't negotiable. Good luck.

Name:	GoneFishin -	Reply
Subject:	Disagree With Newbie
Date:	1/24/2006 11:53:31 PM

Welcome to the lake. We own a waterfront condo. I have to disagree with you when you compare a leased lot to a condo. The condo association owns the land and we as members own share of the land. We enjoy the increase in land prices just as you as a deeded lot owner. While we may have to vote on rebuilding after a disaster, the land can be sold and the proceeds distributed to each member. When a cabin on a lease lot burns down there is no value to the leaseholder for the land. The two are quite different.

Name:	Osms -	Reply
Subject:	Alabama Power Leases
Date:	1/25/2006 12:21:05 AM

With lots in the $350-500K range, you have to look at something like a lease. Costs of owning a 500K lot probably would be $35 to 40K per year. Leasing a lot (equal or more desirable property) will cost about $5K/year--and your property taxes on the land is paid by APCO (you pay taxes for the improvements). Yes, your property values will increase as owned property increases--because more people can't afford to "own" and become prospects for your property.

Don't understand the post about losing something if you have a fire,etc. You didn't pay for the property to start with so how do you lose--you build back with you insurance coverage or you walk away (not advisable). APCO lots get more attractive every day.

Name:	Feb -	Reply
Subject:	Alabama Power Leases
Date:	1/25/2006 7:37:49 AM

Concur with your second paragraph. Generally when you insure your property for casualty loss even on a deeded lot, the lot itself is not insured (only the improvements or personal property). What is going to happen to the land? I guess it could go underwater, an earthquake could cause a major crevis/fault, a sink hole, or a volcano could cause a major lava flow. Not too likely any of those events will occur on or around Lake Martin . Even the trees are not insured unless for the removal if they strike a structure or personal property that is insured.

Happy for my deeded property, but I still think the APCO lease is the second best way to have a place on the Lake. As you stated, a lot of the deeded property around the Lake was once APCO Leased.

Name:	Osms -	Reply
Subject:	Alabama Power Leases
Date:	1/25/2006 8:17:30 AM

I live on the Miss Gulf Coast. Want to guess what has happened to the value of waterfront property (land) that is low. Many people here lost their homes and now they hold a deed to land worth little. It can happen. Since we're talking extremes here, what would lake front property be worth if a crack developed in the dam and APCO lowered the level, say 50-60 feet.?

Name:	roswellric -	Reply
Subject:	Excellent analysis
Date:	1/25/2006 8:50:05 AM

but don't forget the future value of the cash it takes now to "win the bid" for the lease over say, 30 years. It might surprise you.

Name:	TBird -	Reply
Subject:	Alabama Power Leases
Date:	1/25/2006 9:28:40 AM

Just my two cents worth but you might want to read the post by "LAKELOVER" from Dec 04. They were losing their place due to unbelievable increases in the lease payments.

Cut and paste;

http://www.uswater.info/Forum/show.asp?id=29090&fid=1&tid=0&SiteID=AL001

We bought our place a year ago and were fortunate enough to get a place on a deeded lot. Needs a lot of work but at least it is ours.

Good luck and have a great day

Name:	PikeSki -	Reply
Subject:	Alabama Power Leases
Date:	1/25/2006 9:34:38 AM

In addition to this forum thread. I was wondering what all you "Full Timers" and "Old Timers" thoughts are towards property values on Lake M. What have you seen the prices do over the last say 10 years or so? Does anyone think that the property values are nearly 'peaked' or are we only at the beginning of a massive explosion as Atlantans start realizing how amazing lake M is.
I have heard 06 will be the best year yet but many are looking at 06 as the opening of the door?

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