Once in a while I am approached with a question regarding Native land leasehold properties.
Now, I don’t claim to be an expert in the Native Indian affairs. I am an expert when it comes down to the pricing and the values.
A client of mine asked me if I would recommend purchasing a home on the native land with a 99 year lease.
My view is this. If you are looking for a well priced house to bring the cost of living down then go for it (They tend to be 10-15% less then land ownership titles).
However, if you want to turn your house into an investment vehicle then think twice about it.
Why? Because leasehold properties will depreciate as time goes (just like your car). You have no ownership in the land and therefore you cannot offset or leverage the declining value of the structure. Plus, your remaining term of the lease is getting shorter and shorter and therefore less and less valuable.
Seek the help of a skilled advisor to navigate you through these sorts of decisions.
Tibor
Featured Listings
1509 - 13359 OLD YALE Road
$675,000
Introducing a stunning 2-bed, 2-bath apartment on the 15th floor of a brand-new concrete highrise, offering 836 sqft of luxury living space. This exquisite unit...
Abbotsford Market Watch
 What is a pre-sale? Example scenario: When the developer intends to build an apartment building and applies for financing, the bank will grant financing under certain conditions. One of them will likely be a certain percentage of pre-sales the developer will need to secure before receiving the funds.
It is common practice for a developer to approach several real estate investors and offer them an opportunity to purchase units of the non-existent building at a discounted price, and on good terms. Once the number of pre-sales is accomplished, the developer goes ahead with the construction, which will likely take two years or longer to complete. During construction, their marketing team offers the remainder of the units for sale at market value to the public. If you are a RE investor, you know that it is preferable to be buying at the pre-sale prices, not market value prices. The question is, how do you get the invitation to buy a pre-sale? In the past many years, investors have made substantial income by buying at wholesale prices and selling at retail prices even before they needed to complete their purchase. I saw many of them lining up and sometimes even camping overnight in front of the sales center to get a chance to buy at lower prices, but not everyone was lucky enough. You needed to be well-connected to get an opportunity, and you had to act fast. Today is a bit of a different story. Several projects in the Lower Mainland and Fraser Valley offer really good prices and incentives to secure a unit now and complete the purchase two or three years later. The list of incentives varies from one project to the next. Besides attractive prices, you can get low deposit amounts (5-15%), low or no assignment fees, free updates, a mortgage rate buy-down program, extra parking and more. A month ago, I helped a few of my clients purchase a presale in Surrey that sold out in 2 days, and I know of another good developer that will be offering a few units for sale as well. If you would like to know more about these opportunities, I would encourage you to call or email me, and I’ll be happy to send you details on those projects. Kind regards,
Tibor Bogdan
Century 21 Creekside Realty Ltd. 45428 Luckakuck Way #190, Chilliwack, BC V2R 3S9 cell: 604-855-2521 |
The data relating to real estate on this website comes in part from the MLS® Reciprocity program of either the Real Estate Board of Greater Vancouver (REBGV), the Fraser Valley Real Estate Board (FVREB) or the Chilliwack and District Real Estate Board (CADREB). Real estate listings held by participating real estate firms are marked with the MLS® logo and detailed information about the listing includes the name of the listing agent. This representation is based in whole or part on data generated by either the REBGV, the FVREB or the CADREB which assumes no responsibility for its accuracy. The materials contained on this page may not be reproduced without the express written consent of either the REBGV, the FVREB or the CADREB.
Comments:
Post Your Comment: