With more people working from home and craving more space, home hunters are turning their eyes to smaller urban centres and towns. Record low interest rates are also adding to the home buying frenzy. Many bedroom communities and small towns are seeing sky-high prices and bidding wars as buyers leave the urban jungle in search of a quieter lifestyle.
The national average selling price in Canada hit an all-time high of $678,091 in February. That is 25 per cent higher compared to the same month in 2020. Prices like these mean a lot of first-time homebuyers and retirees looking for smaller, more affordable homes are finding themselves priced out of markets, even in rural areas.
A More Affordable Option
But one attractive home ownership option that many haven’t considered is a land lease home.
This model of home ownership lets you own your house without having to buy the land it sits on, making it a more affordable homeownership model.
Parkbridge develops, owns and operates residential land lease communities in smaller urban centres across Canada. Residents enjoy easy access to nature and low traffic streets, with essential services like medical centres, banks and grocery stores located close by.
As an example of the affordability of land lease homes compared to freehold, consider the Parkbridge community of Solstice Tower Ranch, located just 10 minutes outside of Kelowna, B.C. A new phase of this scenic community is under development, where land lease homes are currently set to start under $500,000. A new phase is also under development at The Bluffs at Huron, a Parkbridge retirement community in Goderich, ON. Here, newly built land lease homes are currently set to start under $300,000.
There are other advantages of residential land lease communities, in addition to affordability and location. Here are more reasons why land lease is a great option for young families, empty-nesters, and retirees.
Amenities and Activities
Living outside a dense city means you have quick and easy access to nature through more private outdoor space at your own home as well as shared outside spaces in your community. For example, Parkbridge communities in Wasaga Beach, Ontario prioritize green space, waterfront access and walking trails. Residents of land lease communities pay monthly fees that Parkbridge invests in managing and maintaining community infrastructure and amenities like community centres, playgrounds, fitness centres and even swimming pools. Shared amenities like this bring residents together and enhance their connections and overall lifestyle.
Variety of Home Models
While land lease communities with mobile homes used to be more common, Parkbridge land lease homes are now built more like traditional freehold homes, with communities looking very similar to modern subdivisions. Homes in the upcoming development of Craigleith Ridge near the Blue Mountains in Ontario, will be built in a way that harmonizes with the natural environment, with views of the Niagara Escarpment and Georgian Bay.
The land lease model of homeownership empowers you to maintain and build equity while freeing up money for life’s other priorities. As with other forms of homeownership, appreciation value depends on several factors including location and economy.
Once you purchase a newly built home from Parkbridge, you are then able to sell it through private real estate when ready. Recent examples of sales by residents in Parkbridge communities show land lease homes are selling for close to the national average. This month, an older home in Antrim Glen community, just outside of Hamilton, Ontario sold for over $650,000. The numbers show an investment in a newly built land lease home can be just as profitable as that of a freehold.
Unlike a freehold home development, after Parkbridge develops a community, a dedicated team will remain on site to manage it. And Parkbridge, as owner-operator, will continue to invest in the community to maintain long-term sustainability and enjoyment. The relationship between residents and management remains in place for the entire duration of living in the community and is an integral part of our connection with residents.