Traditionally, people who purchase a home also buy the land on which it sits; however, under real estate law, there are a few alternatives to this particular arrangement. For example, you might consider purchasing a condo or townhouse, which would allow you to own a home without also owning the land. The other option is buying a house and leasing the land it’s on. As you consider options, a real estate law attorney can guide you through the process and ensure you make the right decision for your budget and needs.
The Pros & Cons of Buying a Home on Leased Land
The greatest advantage of purchasing a home on leased land is the cost. Since it’s less expensive, it’s a good choice for those on a tight budget or a family who is outgrowing apartment living. Depending on the community, you may also have access to certain amenities. For example, there might be a pool or tennis court for you to use, and you may not have to worry about maintaining the yard because the HOA fees often cover landscaping. If you are considering purchasing a home that is part of such a community, your real estate law attorney will review the terms of the agreement with you, so you will have a thorough understanding of all the regulations you must follow.
A home on leased land does not provide the same kind of value as one on land you own; you essentially risk losing the equity you have accrued on the home upon the expiration of the lease. You are also more vulnerable to inflation, and unlike traditional fixed-rate mortgage payments, you can expect your monthly lease payments and HOA fees to increase annually as a result.
Whether you decide to purchase a home on leased land or prefer to own the property, Ganim, Ganim & Ganim, P.C. in Bridgeport, CT, will provide quality legal counsel every step of the way. They’ have over 50 years of experience facilitating property transactions and will work to get you the best possible deal. You can learn more about the legal assistance Tom Ganim provides by visiting the firm’s website. To schedule an initial consultation with the real estate law attorney, call (203) 372-7772 today.