Should You Buy Property On Leased Land in Edmonton?

Edmonton Homes for Sale Blog · 2 years ago · 82 views

Buying an Edmonton home situated on leased land  Usually Edmonton buyers purchase thier homes on land which are not leased. However there are several properties where the dwelling is sitting on leased land. This could be anything from apartment condominiums near the University of Alberta, retirement condos in Spruce Grove, a few Edmonton neighborhoods, an additional green space attached to your back yard or other instances. How do you know if the home you are purchasing is sitting on leased land? Leased land is usually crown owned land where the government owns it. Usually a land lease will be for between 50 and 99 years. This can be found on the land title certificate. What are the advantages of land lease contracts? The most significant advantage of a land lease is that the purchase price is almost always less than that for a home bought in the traditional manner. Not buying the land saves money. This enables you to purchase a higher quality home in a more expensive residential area than you might otherwise be able to do. Also, because you don’t own the land itself, you will have lower property taxes to pay. What are the disadvantages of leased land? There are downsides to holding property under a land lease contract. It is often problematic finding financing for land lease homes and makes them harder to sell. If the remaining lease term is less years than what you want a mortgage for, it will be very difficult to obtain the financing. If the lease is near the end, the owner will generally renew it, although with a rental increase. Are new homes on leased land? Not necessarily. Most new builds in Edmonton are not located on leased land. However keep in mind with Canada's housing shortgage, many future new builds in Canada may be built on crown land which will be leased land.