The real estate market is smashing records as the COVID-19 pandemic continues to influence demand and push prices to all-time highs, especially in larger cities. Sky-high housing prices mean many first-time buyers and young families are finding it nearly impossible to enter the market. Meanwhile, seniors looking to downsize and keep some money for retirement are also challenged to find a forever home that’s affordable. Fortunately, there’s an option many may not have considered.
Land lease is a model of home ownership that allows you to own your home without having to buy the land on which it sits. It’s about 30 per cent cheaper than purchasing a freehold property, and it lets you build and maintain equity while freeing up money for other priorities.
People familiar with residential land lease often associate this model with owning a mobile or manufactured home.
Residents of these dynamic communities love the many benefits they offer beyond affordability. Located in smaller urban centres, typically within 90 minutes of a larger city, they come with resort-like amenities such as community centres, pools and fitness centres. A land lease home typically provides more space than a condo and also comes with the bonus of a yard and easy access to the outdoors. And services like lawn maintenance and snow removal in some communities help seniors live active lifestyles and age in place rather than move into a retirement residence.