On Echo Lake and Rogers Lake you’ll find properties for sale that have really low prices in comparison to other lakefront home. Why the huge difference? These are “State-Leased” properties. These is real estate where you don’t own the land, the State of Montana does. The purchase price is for only the improvements on the property, like a cabin, outbuilding or dock and then you “rent” the land underneath. In addition to annual real estate taxes on this personal property and the payment to the owner for the improvements, you’ll also have to pay the State of Montana an annual lease amount (ie rent payment) for the use of the land. These lease amounts currently range from about $5,000 – $12,000 per year depending on the market value of that particular piece of land. Lease rates are adjusted every 5 years based on the market value at the time of reappraisal.
In a nutshell, your expenses annually are:
- Any loan payments from the purchase of the improvements (purchase price)
- The annual lease payment to the State of Montana
- Personal property taxes on any improvement on the property like a cabin, dock or shed.
