Amazing island values

[FlyingScot]

Originally Posted by Descant

Just received a real estate flyer focused on island sales. A couple on Rattlesnake under $500K. Others all over the lake ranged from $1,000,000 to $3,500,000.

I remember the 50's-60's when people owned a 14' aluminum boat with a small o/b and carried out materials to build their camps. No electricity or power tools. Look what that sweat equity has turned into! No more cartoppers; a boat is $50-$100K and a slip to keep it can be another $100K. (You can't have a "cheap" island camp and keep your boat on a trailer.)
Do whatever you can to keep the family camp in the family. It's rare that current younger generations will want to, or be able to, spend $1,000,000+ for another camp. If you're an "older owner", don't sell "So we can give the kids the money". Rent/lease and give them the income.

And even if you do want to "give the kids the money" before you go, they are much better off if they sell the property themselves. If you sell today, you are hit with taxes on the gain. But when you die, the cost basis is reset to the value at your death. If they sell right after you drop, the gain for tax purposes is zero. (may be different if house is in a trust, consult professional) But let's hope they're smart enough to hang on to it