Property Q&A in Pomona>Question Details

Ben Teal, Home Buyer in Dallas, TX

Land Lease; Is this a bad idea?

Asked by Ben Teal, Dallas, TX Wed Dec 8, 2010

Is it unwise to buy a property that has a 99 year land lease? I'm unsure of the remaining time on the lease.

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It's not good or bad, it's just different. It basically means that you own your home but not the land it's on. It gives you less control of your property but in most situations, it doesn't effect you much. Each property is different so if you'd like someone to look into a particular property or complex, let me know.
0 votes Thank Flag Link Wed Dec 8, 2010
It is important to know what the current term is. Generally by learning when the units were build you can easily calculate what is left on the life of the lease. As an example, I was just working with a property that was built in 2000 on a 99 year land lease. In this case, 89 years are left and I would say there is no significant risk on purchasing this unit. On the other hand if you are looking at a home that was built in 1970, almost half on the lease time is gone, and I would be more concerned. In general I do not recommend my clients purchase condos that are that old, as there may be other issues besides the land lease that is on concern.

Good luck with your home purchase transaction.

Please contact me, if you need help finding The Right Home at The Right Price.
0 votes Thank Flag Link Wed Dec 8, 2010
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