(NC) With housing prices climbing across the country, the current market can be pretty scary for those with limited purchasing power, such as first-time buyers or seniors looking to downsize. But a lesser known, more affordable model for homeownership could be the answer.
Land lease enables people to own their home without buying the land. On average, this means the cost of a land lease home is significantly less than a traditional freehold in the same area. Besides a more reasonable purchase price, a land lease offers many other advantages.
■ Build your equity:
Land lease provides young families with a way to leave the rental market and grow equity in their own home, with the bonus of a yard and plenty of room for raising a family. According to Parkbridge, an owner-operator and developer of land lease communities, home prices in some land lease communities have reported average increases of seven to 12 per cent year over year this last decade, depending on location. This means you can still get a strong return when investing in a land lease home.
■ Experience a vibrant community:
A professionally managed land lease neighbourhood often comes with quality resort-like amenities, which create a sense of community where residents feel supported and connected. For example, amenities at Parkbridge land lease communities can include a golf course, pools, playgrounds and fitness centres.
■ Rest easy with neighbourhood upkeep:
If you buy a home in a land lease community that is professionally managed by the owner-operator, you can have peace of mind knowing that your community will be well maintained. This of course helps raise the value of your home. The landowner is as invested as homeowners in the enhancement of the neighbourhood, and typically takes care of things like road clearing and repairs. At Parkbridge, onsite staff are also available to respond to residents in an emergency or consult with homeowners about necessary upgrades to shared amenities, like recreation centres.
■ Free your money:
Retirees who choose to move from their existing home to a land lease can unlock some of the money from their current property for travel or splurges, like a boat or car. Others choose to invest some of the savings from purchasing a land lease home to help their kids with a down payment for their own home or use their leftover funds to help pay for daily living expenses.
Find more information at parkbridge.com. (Source: News Canada)
