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If you're out searching for condo's in and around the [http://www.youtube.com/watch?feature=player_embedded&amp;v=NDYZsMP2PPA Vancouver] area, odds are you've come across properties who have the distinction "Leasehold Strata." Appealing as they may be, understanding what you're buying will 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 price of these units with a few units being offered at thousands and thousands of dollars lower than what it would cost to get a similar unit with 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 begin to see the Leasehold distinction on a property, but act as they would when buying any property and consider a number of options before they commit. What might be right for some might not be right for others.

A leasehold strata distinction is when a public authority or leasehold landlord who owns a parcel of land leases the land out to get a set number of years to a developer or leasehold tenant. Whenever a developer sells a person strata lot, the developer sells the developer's interest being a leasehold tenant to the buyer who then represents the interest as a leasehold tenant.

Since the buyer is getting the interest of a tenant within a lease, he or she buys the legal right to exclusive possession of the strata lot for the balance of the term remaining underneath the lease and the right to trade that interest. What are the results at the end of the term with the lease will have a big 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 the formula of the ultimate payout.

[http://www.youtube.com/watch?feature=player_embedded&amp;v=NDYZsMP2PPA Real Estate] - The Triton on 10th, that is a development built on land of the Vancouver school board at Broadway and Granville falls into such a category where upon expiration of the lease in 2096, the college board must purchase each interest on the current market rate.
The price of a two-bedroom unit within the Triton is about $500-$600 per square foot depending on the layout, direction it faces and which floor being used on. The building is 13 years of age, in a location close to shops and restaurants, and minutes far from downtown.

A recent sale of a two-bedroom, 1240 square foot unit was $623 000 that is $502 per square foot. That's big money less per sq . ft . than a comparable freehold strata unit. The Triton on 10th might be a good fit for somebody who doesn't' have the plan for a freehold strata unit. But buyers' should realize that with leasehold properties banks have stricter approval standards, the machine can be less liquid when it comes time to sell, and they don't see the value appreciation exactly the same way a comparable freehold unit would.

There are other developments in the downtown Vancouver area along False Creek whereas if the lease expires, there's no payout. Meaning if the lease expires, the leasehold landlord becomes the rental landlord, and also the leasehold tenants become rental tenants paying rent on the current market rate. This sort of Leasehold property will depreciate in value and much more so as the lease date approaches. In this instance as the expiration date ways to within 30-40 years any owner will have a very difficult time selling the house, namely because you would have to find someone capable of paying with cash because banks will be very reluctant to mortgage such a property.

[http://www.youtube.com/watch?feature=player_embedded&amp;v=NDYZsMP2PPA 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 cost. But as a buyer, careful consideration must be taken in to the price of the unit and also the number of years until the lease expires.