Cell: 604-855-2521 |

Long Term Leasehold Properties (Native Land)

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

Comments:
No comments

Post Your Comment:

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.