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If you're out trying to find condo's in and around the [http://www.youtube.com/watch?feature=player_embedded&v=NDYZsMP2PPA Vancouver] area, chances are you've come across properties which 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 interest in these properties may have been triggered by the good deal of these units by incorporating units being offered at hundreds of thousands of dollars under what it would cost to get a similar unit with a Freehold Strata distinction. Not just is the price enticing, but in addition many of the Leasehold Strata units in round the Downtown Vancouver area are in prime locations along False Creek. Condo buyers' shouldn't run for the hills the minute they start 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 is probably not right for others. A leasehold strata distinction is when a public authority or leasehold landlord online resources a parcel of land leases the land out for a set number of years to a developer or leasehold tenant. When a developer sells a person strata lot, the developer sells the developer's interest like a leasehold tenant to the buyer who then represents the interest as a leasehold tenant. Considering that the buyer is purchasing the interest of a tenant within lease, he or she buys the legal right to exclusive possession of the strata lot for your balance of the term remaining beneath the lease and the right to trade that interest. What happens at the end of the term of the lease will have a big bearing on the value of the house and should be carefully scrutinized. It is critical that when looking to buy a leasehold strata property, the customer takes a close look in the model strata lot lease for your formula of the ultimate payout. [http://www.youtube.com/watch?feature=player_embedded&v=NDYZsMP2PPA Real Estate] - The Triton on 10th, which is a development built on land of the Vancouver school board at Broadway and Granville falls into this type of category where upon expiration of the lease in 2096, the college board must purchase each interest in 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 readily stored away on. The building is 13 years of age, 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 which 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 recognize that with leasehold properties banks have stricter approval standards, the machine can be less liquid when it's time to sell, and they usually do not see the value appreciation much the same way a comparable freehold unit would. There are more 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 also the leasehold tenants become rental tenants paying rent in the current market rate. This type of Leasehold property will depreciate in value and even more so as the lease date approaches. In cases like this as the expiration date approaches to within 30-40 years any owner could have a very difficult time selling the house, namely because you will have to find someone capable of paying with cash because banks will be very reluctant to mortgage this kind of property. [http://www.youtube.com/watch?feature=player_embedded&v=NDYZsMP2PPA Vancouver Real Estate] - Many properties along Beach Avenue are quickly approaching their lease expiration dates, but despite the desirable location, sellers recognize 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.

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