All about purchasing property on leased land
January 20, 2012 // Posted by: worldhomesonline // Category: Property Purchase / Sale, Rent / Lease
Purchasing a property on leased land is one of the lesser used ways of investing in real estate. Since the rates of properties on leased land is always less than the current value, this arrangement allows one to buy property which otherwise would not have been affordable to him/her. However, it has some deficits or drawbacks as it does not have all the benefits of ownership of land.
The advantages are that the cost of property is low as the land is leased, property tax need not be paid by the property owner, property can be bought in high priced locations etc. However the list of disadvantages include difficulty in resale of the property and the existence of the property only as long the lease term is remaining. While property on leased land may come cheaper than market rates, it has many complexities which are not there in the case of traditional property buying.