Red Wing Resort

[theseeker]

Well greetings everybody, it's a beautiful day in the neighborhood. My topic is Red wing Resort a beautiful place that I can see, but unfortunately not enough information about it. I'm looking possibly to purchase in there as it's close to all the luxury's you would need, the price's are a little inflated compared to the assessed value about $50,000.00 over assessed [2015] value. I know it's leased land and there are different stories from different realtor's I would like to hear "your" stories, any info would be thankful . Thanks again in advance.

[rustled]

I've know some folk who really enjoyed living there.

A couple of years ago, some concerns arose about whether or not leases nearing end-of-term would be renewed, and under what terms. You'd want to look into that (if you haven't already).

[pentona]

Here is the official handbook for Redwing Resorts from 2013. Should be of some interest to you. I was surprised to find out that they aren't on City Water. http://redwingresorts.com/Handbook-Jan2013.pdf

The big question will be coming when the leases expire - what will new leases cost and how long will they be for? I could see the cost of these homes coming down as they near the end of their leases, dramatically.

[Rosemary1]

You should research this and look up legal cases when dispute occur in some communities on leasehold land. (You can find more information on the internet, newspaper articles etc.)
-try speaking to some owners to learn more about the water, sewage and property tax
-confirm if you will be entitled to HOG grant when property taxes are paid to band
--have a good lawyer review lease/sublease terms and be sure you understand the risks and what recourse you may haveif anything goes sideways \(its not like buying into a regular strata)
- investigate with banking institutions their stand on providing mortgages (or 2nd mortgages) on such properties should you ever need to refinance your home
-declining value of home with fewer years left on lease along with some uncertainties
-compare maintenance and lease fee total to strata fees and cost of equivalent home in in a none-leashold strata community in the area

-have home inspected by a reliable inspector if you decide to go ahead.-

[Dawnland]

I am a firm supporter of acquiring as much relevant information prior to decision making. I also believe getting the information from those with the most current information. Legislation has increased and changed, even in the last ten years. Please make sure you know what type of land you are purchasing the lease from, it is very relevant in the legal opinion and consequences of renegotiation.

http://www.dgwlaw.ca/wp-content/uploads ... e_Land.pdf

[theseeker]

I was talking with a friend[I have 2} at the bank and they said they will not give out a mortgage on Red Wing property because there's only 20 years left on the lease there they could by back the land in 20 years and built a Grand Hotle there they said, but up on the land above Skaha Meadows golf course they will because it's 2x75 year leases, Hmmmmmm.

[southy]

I was talking with a friend[I have 2} at the bank and they said they will not give out a mortgage on Red Wing property because there's only 20 years left on the lease there they could by back the land in 20 years and built a Grand Hotle there they said, but up on the land above Skaha Meadows golf course they will because it's 2x75 year leases, Hmmmmmm.

Hummm - ya know seeker if we (the humans) keep doing what we keep doing to Okanagan Lake we won't have to worry about a Grand Hotel being built because there simply won't be a lake. Maybe your long lost 3rd friend will show up and quash this rumour with alittle dose of reality.

[twobits]

What are the remaining lease yrs on phase one of Redwing Southy? Am asking cuz I really don't know.

As for lease renewals......or in legalease, "option to renew"......be careful in assumptions. Unless stipulated in advance, all an option to renew could mean is first right of refusal of a new and very expensive terms.

[southy]

What are the remaining lease yrs on phase one of Redwing Southy? Am asking cuz I really don't know.

As for lease renewals......or in legalease, "option to renew"......be careful in assumptions. Unless stipulated in advance, all an option to renew could mean is first right of refusal of a new and very expensive terms.

Sorry Twobits do not know the exact term as far as years. Though I did come across the following. Go to page 8 - Tenure gives a brief overview and from this information it would appear the terms vary. I will continue to search.

Here is the link: http://redwingresorts.com/Handbook-Jan2013.pdf

[southy]

If you look at properties for sale on the lower portion, ie: lakeshore it would appear leases are until 2036.

http://www.kijiji.ca/v-house-for-sale/p ... nFlag=true

[XT225]

If you look at properties for sale on the lower portion, ie: lakeshore it would appear leases are until 2036.

http://www.kijiji.ca/v-house-for-sale/p ... nFlag=true

...and THEN what?

[southy]

Well XT ... I guess that's the $ (insert amount here) question. Time will tell.

[twobits]

This an interesting clause in the document.

RIGHT OF FIRST REFUSAL
24. IF DURING THE TERM OF THE SUBLEASE THE TENANT RECEIVES A BONAFIDE OFFER TO PURCHASE HIS INTEREST
THEREIN WHICH HE IS WILLING TO ACCEPT HE SHALL DELIVER TO THE LANDLORD A WRITTEN NOTICE OF SUCH OFFER
CONTAINING ALL TERMS THEREOF AND THE LANDLORD SHALL HAVE 48 HOURS AFTER RECEIPT THEREOF TO
PURCHASE THE INTEREST OF THE TENANT IN THE SAID SUBLEASE FOR THE PRICE AND UPON THE TERMS AND
CONDITIONS CONTAINED IN THE SAID OFFER.

Think about this and ask yourself if the PIB is not going to eventually own every home in Redwing as the lease term lengths approach their end. There is no reason for the PIB to negotiate a new lease with a prospective buyer when they can just wait until the price falls to a point that they can buy it for the price of a homeowner putting the house on a truck and moving it. And the first leases expire in just 20 yrs.
I really hope there is something in the Head Federal Lease that protects these homeowners from this but I doubt it cuz Redwing predates the newer more stringent rules for leases on FN lands.
An informed rebuttal to this potential asset grab by someone with agreement details would be helpful.

[Dawnland]

Think about this and ask yourself if the PIB is not going to eventually own every home in Redwing as the lease term lengths approach their end. There is no reason for the PIB to negotiate a new lease with a prospective buyer when they can just wait until the price falls to a point that they can buy it for the price of a homeowner putting the house on a truck and moving it. And the first leases expire in just 20 yrs.

In my opinion, this is shortsighted and uninformed. Redwing is located on locatee land and is owned property. The amount of money the Band generates on taxation is worth more at this point than buying the homes up. If I were the locatee land owner, I would renew the leases for 50 more years and start buying them up at year 25 so that when they're all old and falling apart the Locatee land owner can buy them for a reasonable price, then use the revenue generated from the second leases to develop their own resort LLP. It may be best to keep the housing until the ramifications are felt from the foreign buyers tax and leveled out.

[twobits]

In my opinion, this is shortsighted and uninformed. Redwing is located on locatee land and is owned property. The amount of money the Band generates on taxation is worth more at this point than buying the homes up.

You know what? I had totally forgot that this was locatee land. That even complicates matters further as locatee's have clearly shown in the past an independance that is not in line with Band desires or best interest.
You are suggesting that "if the locatee owner was smart, they would extend for another 50 yrs and .........". You are only speculating. I could also speculate that the locatee owner could also refuse to renegotiate anything until the minimum time frame under the lease agreement....which could be as little as a year or even six months, to drive down the price of the home and essentially take control of the home for a buck more than the cost of lifting the home off of it's foundation and moving it.

The question that needs to be answered is this. "Are those homes with only 20 years remaining on the prepaid lease being sold to new owners with a new longer term lease for the land the home sits on?". If the answer is yes my suspicion is invalid.
Would you or anyone buy a home when if in 20 yrs your option was to move it or walk away unless the price reflected the remaining term of the lease. Or be prepared to pay another 150k for another lease in 20 years?

Foreign buyers tax impacts? Seriously? I am quite sure Redwing land lease prices will be immune. If there were to be any impact it would be in the locatee's favor lol.