User:MccayDurante849

If you're out trying to find condo's in and around the Vancouver area, likelihood is you've come across properties that have the distinction "Leasehold Strata." Appealing as they may be, understanding what you're buying can save you headaches when you eventually choose to sell the property down the road.

You're initial fascination with these properties might have been triggered by the low cost of these units with a few units being offered at thousands and thousands of dollars under what it would cost to purchase a similar unit having a Freehold Strata distinction. Not only is the price enticing, but in addition many of the Leasehold Strata units in across the Downtown Vancouver area will be in prime locations along False Creek.

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

A leasehold strata distinction occurs when a public authority or leasehold landlord who owns a parcel of land leases the land out to get a set number of years with a developer or leasehold tenant. When a developer sells an individual strata lot, the developer sells the developer's interest like 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 right to exclusive possession of the strata lot for that balance of the term remaining under the lease and the directly to trade that interest. What goes on at the end of the term from the lease will have a sizable bearing on the value of the home and should be carefully scrutinized. It is important that when looking to buy a leasehold strata property, the buyer takes a close look in the model strata lot lease for your formula of the ultimate payout.

Real Estate - The Triton on 10th, which is a development built on land owned by the Vancouver school board at Broadway and Granville falls into this kind of category where upon expiration with the lease in 2096, the institution board must purchase each interest at the current market rate. The price of a two-bedroom unit inside 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 yrs. old, in a location close to shops and restaurants, and minutes from downtown.

A recent sale of the two-bedroom, 1240 square foot unit was $623 000 that is $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 an individual who doesn't' have the budget for a freehold strata unit. But buyers' should recognize that with leasehold properties banks have stricter approval standards, the machine can be less liquid when it's time to sell, and they do not see the value appreciation exactly 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 is NO payout. Meaning once the lease expires, the leasehold landlord becomes the rental landlord, and the leasehold tenants become rental tenants paying rent in the current market rate. This kind of Leasehold property will depreciate in value and many more so as the lease date approaches. In this case as the expiration date approaches to within 30-40 years any owner may have a very difficult time selling the home, namely because you would have to find someone capable of paying with cash because banks can be really reluctant to mortgage this kind of property.

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