Three Benefits of a Land Lease
If you’ve started your search for a cottage, there might be one important aspect of buying holding you back. The price! Just as with residential real estate, the value of cottages has increased significantly over the past several years. There is no sign of this trend slowing down.
Yet your desire for the cottage lifestyle is very much alive. There is an option to make owning a beautiful cottage more affordable. It’s called a land lease.
What is a land lease?
Land leasing is not a new concept internationally. It is a tried, true and common in many parts of the US, Australia and Europe, and it is now becoming more popular here in Canada. If you’re looking to unlock the money tied up in your current house, or to purchase a new home without a big capital investment, a land lease will make more sense than any other ownership option available. At Parkbridge, we call it a Live Smart Lease because we believe a land lease really does allow you to live smarter and more affordably. Let’s take a look at three key benefits….
Benefit #1: Affordability
You own your home, and you lease the land it’s on. This is the key to the affordability of a land lease resort cottage. In fact, recent statistics from both the Canadian Mortgage and Housing Corporation (CMHC) and Multiple Listing Services (MLS) show that homes in residential land lease communities are often significantly more affordable than freehold properties yet they are comparable in every other way. That’s because you pay just for the home, not the lot it resides on. As an added bonus, resort cottages come professionally decorated and fully furnished including all appliances. You’re free to do whatever you wish with the money you unlock from the sale of your current home, or the money you’re not paying the bank in big monthly mortgage payments that include the land. Plus, property taxes in our communities are often lower than those incurred by comparable freehold homes—helping to offset other monthly expenses. If the time comes where you’re ready to sell, there are easy resale options, making the buying and selling process even less worry-free.
Benefit #2: Community Benefits
Unlike renting an apartment or buying into the politics of condo living, you get your own cottage with your own yard while community managers take care of the day-to-day needs of the community. Why? It’s all about a smart partnership where the management team is just as invested in the community as you are. At Parkbridge, we have mutually agreed-upon community standards that meet a shared ideal, and we maintain them to stay that way. This is what makes our resort cottage communities so incredibly peaceful, safe, secure and enjoyable.
Benefit #3: Maintenance Free Living
By not spending money on the land itself, a land lease will free up money to spend on the things that matter most — like a beautiful cottage, activities and enjoyment. You can enjoy being lakefront without the high cost, and water access and decks are available even if you choose a more private location away from the water. But perhaps the best part is the virtually maintenance free living. You will not have the expense and time-consuming efforts required to pay for and maintain the property. Instead, the property management takes care of the neighbourhood and helps to build and maintain all the features and lifestyle elements that will become your favourite memories.
Get Out and Enjoy Cottage Life with a Land Lease
All our cottage resorts in the Kawarthas are a land lease. So you can own a beautiful cottage, with no money locked into the lot it’s on, in a neighbourhood with a real sense of community and so much to do each and every day. You can truly have your cake and eat it too!