SarineHenriques687
If you're out looking for condo's in and around the Vancouver area, chances are you've come across properties who have the distinction "Leasehold Strata." Appealing as they may be, understanding what you're buying can save you headaches when you eventually decide to sell the property down the road.
You're initial curiosity about these properties might have been triggered by the good deal of these units with a few units being offered at thousands and thousands of dollars under what it would cost to get a similar unit having a Freehold Strata distinction. Not just is the price enticing, but also many of the Leasehold Strata units in around the Downtown Vancouver area will be in prime locations along False Creek.
Condo buyers' shouldn't run for your hills the minute they see the Leasehold distinction on a property, but act as they would when buying any property and look at a number of options before they commit. What could be right for some may not be right for others.
A leasehold strata distinction happens when a public authority or leasehold landlord online resources a parcel of land leases the land out for any set number of years to a developer or leasehold tenant. Each time a developer sells someone strata lot, the developer sells the developer's interest being a leasehold tenant to the buyer who then takes on the interest as a leasehold tenant.
Considering that the buyer is purchasing the interest of a tenant within lease, he or she buys the right to exclusive possession of the strata lot for the balance of the term remaining under the lease and the directly to trade that interest. What happens at the end of the term of the lease will have a big bearing on the value of the house and should be carefully scrutinized. It is crucial that when looking to buy a leasehold strata property, the customer takes a close look at the model strata lot lease for your formula of the ultimate payout.
Real Estate - The Triton on 10th, the industry development built on land owned by the Vancouver school board at Broadway and Granville falls into this type of category where upon expiration from the lease in 2096, the college board must purchase each interest in the current market rate. The buying price of a two-bedroom unit in the Triton is about $500-$600 per sq . ft . depending on the layout, direction it faces and which floor being used on. The building is 13 yrs . old, in a location close to shops and restaurants, and minutes far from downtown.
A recent sale of a two-bedroom, 1240 square foot unit was $623 000 that is $502 per square foot. That's hundreds of dollars less per sq . ft . than a comparable freehold strata unit. The Triton on 10th could be a good fit for an individual who doesn't' have the budget for a freehold strata unit. But buyers' should realize that with leasehold properties banks have stricter approval standards, the machine can be less liquid when it's time to sell, and they don't see the value appreciation the same way a comparable freehold unit would.
There are many developments in the downtown Vancouver area along False Creek whereas when the lease expires, there isn't any payout. Meaning if the lease expires, the leasehold landlord becomes the rental landlord, and the leasehold tenants become rental tenants paying rent on the current market rate. This sort of Leasehold property will depreciate in value and many more so as the lease date approaches. In this instance as the expiration date approaches to within 30-40 years any owner will have a very difficult time selling the property, namely because you would have to find someone capable of paying with cash because banks will be very reluctant to mortgage this type of property.
Vancouver Real Estate - Many properties along Beach Avenue are quickly approaching their lease expiration dates, but inspite of the desirable location, sellers realize that in order to sell this kind of property they must lower the price. But as a buyer, careful consideration must be taken into the price of the unit and also the number of years until the lease expires.
