What is the benefit of Buying within a Land Lease?

How to properties in land leases even sell? Whats the point, I think it would be a huge negative.
  • November 24 2013 - Phoenix
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Answers (5)

I guess a benefit is that they will be priced lower, compared to regular "fee simple: property where you own the land and the building. or in the case of a condo the actual condo. For relative short term its not that bad but if you intend to keep it long term and pass to your heirs it might not be the best thing.
  • January 30 2014
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I don't see any benefit. You don't own the land, only the four walls (and the air inside!).  Plus you have to add the land lease fee on top of your mortgage, HOA fees, etc.  If the land lease is close to expiring, the value of property goes down.   When the land lease fee is re-negotiated, your fees will increase - sometimes substantially!

Lose-lose situation, IMO.
  • December 31 2013
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There is some property in Scottsdale owned by a family who leases the land to the homeowners.  The benefit is the land lease is appraised and negotiated every 30 years (On this particular land off of McDonald and Scottsdale Rd.) The other benefit is you get a lot more house for your money.  The price per square footage is much lower.  Be sure to take into account the surrounding area HOA;s.  Some are close to the cost of a land lease.  I can talk to you about it more if you would like to contact me. :)
  • December 05 2013
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We have land leases on the beach sand in Santa Monica..... Ill take that ! 
  • November 24 2013
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Well, they're priced lower, and if the lease is going to outlive you, why not?
  • November 24 2013
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