That looks great. I'd love to find something like that for my MG and my S2000. I'd love to be able to work on the MG all winter. Was it expensive and is the monthly maintenance high?

 

They sure weren't giving it away, Rob. To put it in terms that everyone can probably apply to their own area, it was a bit more than 1/2 the median price of a home. That price is a lot less than the price of a comparably sized stand-alone building on a commercial lot.

Theoretically, the cheapest route is to build the structure you want on the site of your residential lot. This saves you the price of the land as you already own the lot you live on, and the building will be right next to your house. If I could have gone that route, the investment would have been about 2/3 the price I paid. But for me, the zoning restrictions were too numerous and limiting. I'd need to apply for a variance and there was a good chance that the application would be denied given the size and the height of the structure I wanted. Plus, I do not yet own my "final" home. I plan to downsize some time in the future, so why build this building on my current lot?

In the end, Rob, I decided that some of the money I have invested for the long term could just as easily be converted into this property. While some people may see this as an extravagance, I just see it as the vehicle that is holding some of my long term savings. And I like looking at this building a lot more than a sheet of paper or a computer screen with a number on it. I may not enjoy the sort of gains that a mutual fund would return, but it diversifies my portfolio a bit and I can use the asset. I know that if I need to sell in the future it will take some time to liquidate it, but again, this is all long term money that I hope to never actually use.

The condo fee is about $340 a month and that covers the building insurance, snow removal, and building maintenance. I pay for the electric and property taxes separately. I calculate that I'll save more than that on boat storage fees, winterizing, shrink wrapping, and maintenance that I'll be doing myself rather than paying others. Plus, I'll be ready to go in the water earlier in the season. I currently miss the first month of fishing and boating due to back-ups with my technician. I'll still hire experts to do things I can't do, but it should cut the repair/maintenance costs by more than 50%.

Your analysis may differ, Rob, but find someone who sells commercial property and look for contractor's condo units in your area. Also, you can take a look at loopnet.com to get a sense of pricing in your area. The internet cites aren't as good for commercial real estate as they are for residential. A lot of these things get sold by word of mouth.

 

Bill,

I think you made a very smart decision on all fronts. Like you, the zoning and restrictions here make it very difficult to build something like that on my property. Aside from the increase in real estate taxes, the required permits and regulations make things very difficult. We just replaced the cabinets and counter tops in our kitchen only to have our real estate taxes go up $500 per year as a result of the improvement. Taxes here in New Jersey are ferocious. Besides, in two or three years we're considering downsizing to a smaller house so to build something on our property wouldn't work out in the long run.

I don't know of anything like you bought around here but they are building a storage facility near here. I'm going to ask if something like you have will be available. Actually I'd only need one slot for my MG. I'd need heat and light so I could work on it during the winter, but that might be possible.

Congratulations on the purchase. I do think you made a good move and I hope you enjoy it. It looks perfect.

 

Airplane owners do essentially the same thing. Here is one for sale in Groton, CT. Reasonably priced as well: https://www.loopnet.com/Listing/201-...n-CT/16933699/

 

Rob, how did anyone know you replaced the cabinets and countertops? Did you have to get a permit? I don't think we would need one for kitchen upgrades unless pipes or plumbing were to be moved. And then I think you have to make improvements over a certain percent of your property value (maybe 10%) before you get reassessed. Then the tax is 1 1/4% of the amount spent. This is not to say our taxes are cheap, our property tax is over $1000 a month (since we bought in 2016).

 

It sounds like you've put some solid thought into buying this, especially since you say you're not in your final home. Having someone else handle the building maintenance should make ownership a lot more fun. Well done.

 

I'm not familiar with Groton real estate, or the limitations on the use of that building, but that price strikes me as dirt cheap. I looked at a house on a private runway that had a hanger. I considered buying it for the hanger and renting out the house. But the limitations on the use of the hanger made it useless for me.

 

Dean,

We did it through Home Depot and they subcontracted out to a company named CS South. If I ever use Home Depot for a renovation again and they tell me they're using CS South I won't work with them. A 4 to 6 week job ended up taking 5 1/2 months. We replace the cabinets, countertops and flooring. Nothing structural, electrical or plumbing was touched. Nonetheless, CS South insisted on getting permits. In our township they were required for this kind of job (that changed as of January 1 of this year). Anyway when I got the additional tax assessment I called the tax collector and was told that the new kitchen raised the value of the house and therefore my real estate taxes.

When I asked why the real estate taxes didn't go down when the value of the house went down after the housing crash. I didn't get an answer. We pay about $1,450 a month in real estate taxes. You'd think that was enough. New Jersey, unfortunately, has the highest real estate taxes in the nation, and the towns are still struggling.

Back to Bill's new workshop. I'm jealous. I want one for my cars.

 

Rob, I hope your monthly real estate taxes include your school taxes.
Levi