Canadian rental housing providers for affordable housing: ForAffordable.ca More info

Top saving opportunities for homeowners through land lease housing

Purchasing a home is one of the biggest financial commitments in your lifetime.  When purchasing your home there are many options to consider, including the type of home and the costs associated with buying each different type of home.  One of these options is buying a land lease home, which has the advantage of being more affordable than a home that is stick built on site.  Investing in a land lease home and joining a land lease community is a great option if you’re looking for a smaller space or to downsize a larger home. 🏡

But what makes a land lease home more affordable? 🤔 

 

The primary factor is the unique construction process.  Instead of building the home on-site, sections of the home are fabricated within factories using standard building materials, just like site-built homes. This off-site construction allows for greater efficiencies and accessibility, resulting in significant savings opportunities for homeowners.  Generally, land lease homes are $200,000 to $300,000 cheaper than traditional single-family homes, and the purchase price can range anywhere from $50,000 to $500,000. Other factors that can affect the cost include builders, whether you buy new or used, the cost of the land, and any additions or customizations you make to the home.

 

 

Another factor that can affect the price of a land lease home is the option of settling in a land lease community. 👨‍👩‍👧‍👦 

 

The land lease model of homeownership offers a unique opportunity for individuals to own their homes without the burden of purchasing the land. These homes are typically priced at a 30% discount in comparison to the surrounding area’s average home prices. In addition to being cost-effective, residents can also enjoy the benefits of living in a close-knit community and a comfortable home to raise their families or enjoy their retirement years. Although the concept has been around for some time, it has only recently been growing in popularity.

 

This housing model is particularly attractive to first-time buyers, families, and retirees looking to allocate their funds to other priorities while still building equity. For retirees, this option allows them to downsize from a larger family home without requiring financing. Younger families, couples, and singles seeking affordable homes can also benefit from this type of homeownership.  Choosing a land lease home enables residents to reside in a preferred neighborhood without compromising on privacy, space, or style.

For more information on land lease properties, visit our previous blog post here.

 

For those of you considering a land lease home, here are some of the top savings opportunities associated with choosing a land lease home over a site-built home:

 

  • Land lease homes are significantly less expensive than site-built homes, with a lower average sales price.
  • Land lease homes are built in a factory using an assembly-line process that allows for greater efficiency and speed of construction. This results in cost savings that can be passed on to the homeowner. Additionally, land lease home builders have the flexibility to negotiate savings on many components used in building a home, with the benefit of these savings being passed on directly to the land lease homebuyer. Additionally, since land lease homes are built within factories, the construction process is not hindered by weather conditions, theft, or vandalism.
  • Modern advancements in the technology used in land lease housing factories offer a variety of architectural styles and exterior finishes to choose from, among other customizations, that were not previously available when purchasing a land lease home.  Potential buyers have a variety of floor plans, layouts, design styles, and customization options to choose from, without having to look elsewhere or pay a higher price point. (Please note that this customization option may not be available at all land lease communities.)
  • Land lease homes benefit from the economies of scale, resulting from purchasing large quantities of materials, products, and appliances at one time as opposed to one-time orders that are often placed on a case-by-case basis when it comes to the construction of a site-built home.
  • Land lease homes offer enhanced energy efficiency, achieved with upgraded levels of insulation and more efficient heating and cooling systems. This provides another source of savings for homeowners, as they save on their energy bills in the long run.
  • The flexibility and efficiency of the land lease housing process allow for greater customization of each home to meet the buyer’s needs and lifestyle. This means that the home can be mapped out and customized before it even enters the construction phase, resulting in no delays or extra costs. This includes high-end interior features such as fireplaces, top of the line appliances and state of the art kitchens and bathrooms. However, please note that the customization feature may not be available at all land lease communities.
Once you have purchased your land lease home you will have to make sure to secure a plot of land!  Luckily, Canadian Apartment Properties REIT (CAPREIT) offers land lease communities across Canada. In addition to being a cost-effective option, our communities offer much more than just a place to live. With the support of our professional management team, residents foster a strong sense of community and enjoy a friendly atmosphere.  Our land lease communities are conveniently situated close to community amenities and outdoor amenities such as parks and outdoor trails! For more information on our available land lease opportunities visit our website here.
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Additional information and resources:

 

What is Land Lease?
https://www.capreit.ca/what-is-land-lease-blog/

 

Top saving opportunities for homeowners through land lease housing
https://www.capreit.ca/top-saving-opportunities-for-homeowners-through-land-lease-housing/

 

Land Lease FAQ’s

https://www.capreit.ca/rent-or-lease/frequently-asked-questions/#land-lease

 

Find a Land Lease Home
https://www.capreit.ca/land-lease/

 

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