Kirsten, Home Buyer in 10038

I've noticed a lot of gated communities in Scottsdale are on a land lease. Are there any without one? What percentage of RE here has a land?

Asked by Kirsten, 10038 Sun Feb 6, 2011

lease? Twice now I've fallen in love with a property in Scottsdale before I realized there was a land lease which made the monthly costs impossible for me. The first time was beginner's bad luck but I have little excuse for the second one except it hadn't occurred to me that a townhouse would have a land lease! I'd like to know what percent of SFRs and townhomes in Scottsdale are on a land lease and if there is a correlation with its being in a gated community? Any help you can give would be greatly appreciated.

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Terry S. Smith’s answer
The percent of GATED homes in Scottsdale with a land lease are miniscule.

I can only think of 3

1. Scottsdale House
2. Briarwood
3. Hilton Villas

Gated/or not gated doesn't really matter since this does NOT determine land lease/no land lease.

Hope this helps.

P.S. Hire an associate broker to help you, they can point out the landmines out there and it costs you nothing to hire them, their fee is priced into the SALE of the home.

Terry S. Smith
Scottsdale Specialist
45 Year AZ Resident
DPR Realty LLC
8341 E. Gelding Drive
Scottsdale, AZ 85260
Contact me Direct (602) 763-1858
Office (480) 994-0800
ScottsdaleForeclosures@Gmail.com
http://www.ScottsdaleLenderForeclosure.com
1 vote Thank Flag Link Mon Feb 7, 2011
BEST ANSWER
There really aren't all that many leased land developments in Scottsdale. The ones mentioned by Tooraj constitute the lion's share, as well as the Santo Tomas subdivision (near McCormick Ranch / Gainey Ranch). Of the gated communities, the Briarwoods down near McDonald / Scottsdale Rd and a few developments near 68th / Camelback are the primary offenders. There are plenty of non land lease gated communities outside of that small handful. Avoid the few mentioned on this thread, and you'll be fine.

In addition to the high fees (which can skyrocket periodically when they are renegotiated), I'm not a huge fan of the resale/investment potential of these developments largely because it is unusual for the area. Markets like Hawaii, where land is at a premium, or on Native American land it is fairly common as you have owners/developers who don't wish to part with the land, but it can be a tough sell here. If you'll pardon the link (not trying to spam you), here is an article I wrote on Scottsdale's leased land communities.
1 vote Thank Flag Link Mon Feb 7, 2011
Besides the answers you have already received I would suggest that you discuss this with your Realtor. It is easy to send you a search without this type of property to help you avoid the fees you are concerned with.

There is no correlation with a gated community and leased land.

If you need assistance, please don't hesitate to contact us!

Best Regards,

Brenda and Ron Cunningham
602-980-3133 / 602-499-0694
Recognized in the Phoenix Business Journal as on of the Top 50 Realtors in the Valley
1 vote Thank Flag Link Mon Feb 7, 2011
The sections of Scottsdale that have land leases is limited to a few small areas near downtown. However, there are many more areas that do not.

One of the key ways to recognize these homes is by their seemingly attractive low price. These land leases have become unpopular in the last few years and the property values in those communities has plummeted. The same home a few blocks away without a land lease will be several thousands higher.
1 vote Thank Flag Link Mon Feb 7, 2011
Hello Arisen:

I believe there is only Camelback or Scottsdale house and then all the Briarwoods and just one or two more just in southern part of scottsdale. I do not know any other property that is land leased. this is a criteria that can be unelected when your agent makes the search.
Good luck
Tooraj at remax excalibur 602-369-8259
1 vote Thank Flag Link Mon Feb 7, 2011
Hi Kirsten,

There is no correlation that a gated community would always have a land lease. I should say though that not every community with a land lease necessarily has high monthly costs. In most cases in fact Pad fee's or HOA fee's vary based on the community etc. If you are staying within a certain budget I would recommend that you definitely share that criteria with your agent if you are represented so that your agent only shows you those communities where you won't have that issue. Good luck in your home search.
1 vote Thank Flag Link Sun Feb 6, 2011
Excellent, thank you everyone! I agree with you completely, Paul. My instinct was that even if I could somehow stomach these land lease fees that I would not do well on the resale and might have trouble selling. I look forward to reading your article - I googled before for an article or blog about this and couldn't find one.

I will ask my buyer's agent to exclude these. I am still fairly new to looking here and thought maybe these just might be fabulous bargains, but I should have known it was too good to be true.
0 votes Thank Flag Link Mon Feb 7, 2011
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