Welcome to Leisure World, a planned community for independent adults who have reached the age of 55 and over. Leisure World was a new concept when it was founded in 1962, a development exclusively for older adults with both recreational and medical facilities for the population living in over 6000 units. This is a complete community providing many services including bus transportation, pharmacy, post office, a library, an RV lot, exercise and hobby classes, club houses, wi-fi hotspots, and a car wash, to name several.
Leisure World is administered by the Golden Rain Foundation, which administers the trust property for the 17 mutuals (homeowner association)--16 cooperatives and one condominium association. A stock cooperative allows a buyer to purchase a share of stock where the mutual owns the property, whereas a condominium is entirely owned by each purchaser.
Important things to know about buying a new home include:
Cooperative units are all-cash purchases.
Cash reserves of either $25,000 or $50,000 (depending on mutual) are required.
Rentals are not allowed, must be owner occupied.
Income levels must be met in order to buy (may change per each mutual's rules), and are a multiple of the HOA monthly fees for a unit, plus property tax prorations. The multiples are 4x, 4.5x and 5x the fees.
A one-time initial fee is charged, currently $3054.
Buyers must provide 2 years of tax returns, and either 6 months of bank statements OR estimated escrow closing statement to further document financial requirements.
Some mutuals may require a buyer's credit report.
Condominium units (Mutual 17) may be financed, including using a reverse mortgage, and are purchased in the same manner of any condo unit.
Knowing this information (which is not all inclusive) will prepare the interested buyer in advance.
Please contact me with additional questions if you think you would like to move to Leisure World!