Which hold is right for me..Freehold or Leasehold??

   The other week I attended a home inspection in Westbrook Village VANCOUVER close to UBC. As part of my pregame preparation I go on the MLS website to check the listing (Look at pictures, age of property, square footage, etc). I was alerted to the price being a bit lower than comparable houses in that area. When I arrived the realtor greeted me and told me it was a leasehold sale. LEASEHOLD?? What is that??

Let me explain..

The majority of homes sold in the lower mainland are what is called freehold sales. That means that the buyer will own the structure as well as the land it sits on. This is beneficial because we all know that as time passes most structures will drop in price (unless renovations are performed). However here in the LOWER MAINLAND the value of the land keeps going up. Just look at those yearly property assessments..Yikes!!

With a leasehold property the buyer only owns the structure but not the land. The land is leased for a fixed term. Most leases are between 50-100 years. At the end of the term it's up to whoever owns the land to decide what they want to do with it. Many purchasers of leasehold use the property as rentals especially when close to the university. Other areas that have leaseholds are in Tswassen and Richmond.

Obviously you want to do your due diligence and research the pros and cons of both. Contact your local favourite realtor if you have any questions.  When the time is right and you have found your home give Best Coast Inspections a call for all your home inspection needs...