User:AnnaRahman875

If you're out searching for condo's in and around the Vancouver area, chances are you've come across properties which have the distinction "Leasehold Strata." Appealing as they may be, understanding what you're buying can save you headaches when you eventually opt to sell the property down the road.

You're initial curiosity about these properties could have been triggered by the low price of these units with a few units being offered at hundreds of thousands of dollars lower than what it would cost to get a similar unit with a Freehold Strata distinction. Not just is the price enticing, but additionally many of the Leasehold Strata units in across the Downtown Vancouver area are in prime locations along False Creek.

Condo buyers' shouldn't run for the hills the minute they start to see the Leasehold distinction on a property, but act as they would when buying any property and think about a number of options before they commit. What may be right for some may not be right for others.

A leasehold strata distinction is when a public authority or leasehold landlord online resources a parcel of land leases the land out for any set number of years to some developer or leasehold tenant. Each time a developer sells an individual strata lot, the developer sells the developer's interest as a leasehold tenant to the buyer who then takes on the interest as a leasehold tenant.

Because the buyer is acquiring the interest of a tenant within lease, he or she buys the legal 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 with the lease will have a big bearing on the value of the house and should be carefully scrutinized. It is important that when looking to buy a leasehold strata property, the customer takes a close look at the model strata lot lease for the formula of the ultimate payout.

Real Estate - The Triton on 10th, that is a development built on land belonging to the Vancouver school board at Broadway and Granville falls into this kind of category where upon expiration with the lease in 2096, the school board must purchase each interest on the current market rate. The buying price of a two-bedroom unit within the Triton is about $500-$600 per sq. ft. depending on the layout, direction it faces and which floor the unit is on. The building is 13 years old, in a location close to shops and restaurants, and minutes away from downtown.

A recent sale of a two-bedroom, 1240 square foot unit was $623 000 which can be $502 per square foot. That's hundreds of dollars less per square foot than a comparable freehold strata unit. The Triton on 10th could be a good fit for someone who doesn't' have the afford a freehold strata unit. But buyers' should realize that with leasehold properties banks have stricter approval standards, the system can be less liquid when it's time to sell, and they usually do not see the value appreciation the same way a comparable freehold unit would.

There are more developments in the downtown Vancouver area along False Creek whereas when the lease expires, there's no payout. Meaning when the lease expires, the leasehold landlord becomes the rental landlord, and also the leasehold tenants become rental tenants paying rent on the current market rate. This sort of Leasehold property will depreciate in value and much more so as the lease date approaches. In cases like this as the expiration date methods to within 30-40 years any owner may have a very difficult time selling the home, namely because you will have to find someone capable of paying with cash because banks can be really reluctant to mortgage such a property.

Vancouver Real Estate - Many properties along Beach Avenue are quickly approaching their lease expiration dates, but regardless of the desirable location, sellers recognize that in order to sell such a property they must lower the purchase price. But as a buyer, consideration must be taken into the price of the unit as well as the number of years until the lease expires.