Do not do it. There was a experience in Vancouver BC years ago where a whole neighbourhood was on leased land. When the lease term matured the owner quintupled the lease payments and told the residents if they didn't like it they could take their house and leave! It was an awful situation for some folks whom had more recently purchased the home and taken over the lease. They ended up walking away as the new lease terms made their homes worthless. George is forgetting that as a town home owner and part of a strata you also own a part of the common land along with your unit. A completely different set up than a leased land with an owned building.

@MrRAGE-md5rj

2 жыл бұрын

A guy like that is in danger of getting up close & personal with a baseball bat. That ain't right.

Land lease deals are super tricky! As my fathers executor, I had to sell his house with a land lease a couple years ago and it was a huge hassle. My dads property was on Songhees land so the lease had to go through their office and transferring the lease to the new owner took 8-9 months. Thankfully we worked it out with our lawyers for the new owner to be able to take possession of the house until the land lease transfer went through (as a “renter”), but that meant that it was several months before the estate saw the money from the sale. Also, I would check what the monthly lease fee includes. My dads was a small house in an area for seniors so they had a common space they could use and they got snow and garbage removal which was included in the monthly fee. It was a great place to live and he absolutely loved it! But if you are wanting to live there until you can afford a larger home, I do not recommend it. It will be too difficult to sell. For retirees with no mortgage, it is perfect, but for everyone else it is not ideal.

I think Dave nailed it: if I'm buying a house to live in and I have to pay $800 (or whatever) on top of the mortgage for the building, I'm walking away from that deal. The only buyers for that house would be similar to timeshare buyers.

So this guy has nearly 100k to buy this house and is prepared to pay $800 per month in perpetuity? That’s a mortgage payment, why not use the 100k and put a decent downpayment on one of those 400k houses? This doesn’t seem Like a good deal.

@ne9835

2 жыл бұрын

Yes!!!

@jimroscovius

2 жыл бұрын

Yes, and get out of Jersey!!

@austintomkewitz3981

2 жыл бұрын

Yep keep buying homes nothing to see here

@austintomkewitz3981

2 жыл бұрын

On second thought that sounds good in a long term agreement with all this inflation

@dan4logic500

2 жыл бұрын

The only people who would ever even consider weird agreements like these are those for whatever reason can’t qualify for a mortgage

I know darn well that you can get a home for significantly less than $400k in South Jersey. If he has $100k to put down, he can get a mortgage for that $800 a month and eliminate all that BS with the land-lease. How is it that a person can call a finance show to ask for advice about a lease without actually knowing the terms of said lease?

This is super common in Florida for mobile homes. The home is usually much less than a MH on owned land, but...the lot rent can (and usually does) increase yearly.

@candacecabral6488

2 жыл бұрын

Same for condo association home communities.

Appreciation of real estate is basically 100% in the land value, the building depreciates. If you don't own the land, you're not better off in the long run

Not sure about this one in New Jersey but over here in BC this is becoming very common on indigenous owned land. We got our brand new home for roughly half the cost if what similar freehold homes cost about a 5 minute drive from us. Our lease hold term is 99 years and every 20 years we have an option to pay the holder 1% of the then appraised value to extend the terms another 20 years. The contract allows for up to 50 of these, or up to 1000 years extended. We do have a lease fee that can increase at certain intervals but it and the local tax here, combined, is about 20% less than municipal taxes in the freehold area 5 mins away. We get the benefit of a very good location at about half the price. The land itself doesnt have the appreciation but the area is desirable and will be into the future.

Just reading the tag line to this video I say absolutely not, land lease is the same as living in a trailer Park you park your trailer some place and lease the land under it.

$400k sounds awesome! Take that for sure. I’m looking at Toronto where the average is $1.2Million CAD right now, which is about $900k USD.

Bad move to buy a cheap house on leased land, especially with a lease that costs $10k/yr. There are PLENTY of nice homes (3br, 2ba) for sale in south Jersey for $250k...or less. He probably doesn't really need a $400k home.

😅 It's not unusual in Australia. They're called lifestyle communities (often over 55s), and they are lease communities /villages that include common land and amenities such as a pool, lounges and common buildings.

These are common in Baltimore where the city owns the land your house is on and you get a 100 year land lease. Anything to keep you from actually owning anything ever.

@JGalegria

10 ай бұрын

It's completely different when the government owns the land. The ACT (Canberra Australia) functions this way and house values are through the roof. No problem selling.

@YuggyAdventures

Ай бұрын

Well we never own land. Taxes is the same as rent even on a pid off house, that bill will continue until you die.

I would not be interested any Weird concept for a single family home. I agree with Dave. Selling it would be a nightmare.

Worst of both worlds rent the Land that doesn't depreciate but buy the depreciating house that way you got maintenance costs and a mortgage on the land good plan bud

Why not just move and buy a house elsewhere?? New Jersey stinks!!

@MoneyMan28

2 ай бұрын

No, New Jersey is lowering property taxes for seniors in 2025

I live in London and all flats are leasehold..

I live in a 55+ community in Ocean County that is a land-lease community. I own my own home and pay a month lot rent. The downside is that the landlord can increase your rent every year. Our township recently signed an ordinance for rent control and cannot go above 3.5% based on the CPI index in the year Oct to Oct. There are rules you need to follow....our lot rent includes lawn maintenance, pool, clubhouse and we can claim 18% real estate tax. But we have to pay our own water as it is city and we have to run the sprinklers during the summer. We are responsible for upkeep of our home. You will probably have rent increases every year...our home has appreciated in the six years we purchased though. Many of the homes in the area are increasing in value and that goes for our homes here too. But there are rules and regulations similar to condo assns. So you have to weigh all things. Good luck.

I like your videos thx but is better to buy retail or Condo with land lease or ? and what if I wanna sell my building years later then how does that work since I don’t won the land ?

Thank you for wisdom

How can this guy even value the deal without understanding the term? And ultimately the deal isn’t far from just paying a mortgage the $100K upfront plus annual on a $400K pays it 10 years out in which time there is a potential capital gain.. the more complex the deal the less true advantage

That is the point - how long is the land lease!!!!!! and I would never do a land lease.

This isn’t a solution to anything.

So $300k plus dollars for the next 30 years. Maybe. The problem is who would buy this from this guy? No free lunch.

It's a blessing in disguise. It's you chance to get out of Candem.

@jenniferboyd6556

2 жыл бұрын

😂😂

@nyneegardner6235

2 жыл бұрын

This is a really bad deal, especially for a single family home. The land will never be his, and at $800/month for the land lease he would be throwing away his money! AND he doesn't have to buy this property to get out of Camden. I used to live in Philadelphia, and was JUST on Zillow yesterday looking at properties there and in other cities in Camden County. There are other affordable homes in South Jersey that went for closer to $200-300k. He can look into Pennsauken, Delanco, Atco and even Cherry Hill and locate a single family home with a traditional setup and mortgage. It's safer to buy the land as well as its dwelling.

I bought a house in a small lake community. The house is on leased land own by the lake association of all homeowners. The lease and association club dues are alot less per year than I could rent. In ten year I could save much more in rent than the cost of my house. One person in the community pay close to 200,000 for hers. Now I feel she regrets the purchase and is causing trouble in the community. I would not pay $100,000 for a house on leased land plus pay $800 per month lease .

Well we never own the land either way, if its a long term lease for 800 dls that could be a lot less than the taxes he would have to pay per year to uncle sam

Question - if this deal is similar to buying a condo ( as Dave mentioned), what prevents a buyer from getting a traditional mortgage? Appreciate if anyone could clarify

@bettysmith4527

2 жыл бұрын

I am not a mortgage professional, but having owned and sold a condo in the past, the percentage of owner occupied vs renter occupied matters tremendously when it comes to your ability to obtain financing, I believe at least 80 percent of the condos have to be owner occupied for it to be financed with a mortgage, sometimes they will make exceptions if you have a larger than normal down payment. They also look at the insurance binder for the association and how financially well off the association is. You, as the potential buyer, also need to look VERY carefully at the condo documents, including the rules/regs, what counts as common property and what doesn't (Ie if you deck is not common property it means you would be responsible for replacement if the association decides it is necessary AND they can even dictate who you use to do the replacement!), as well as the finances of the condo association. Do they have adequate reserves, how many owners are in default for their condo fee, how many special assessments have they had and are there any planned in the near future etc. If considering buying a condo, do it carefully and also walk around and talk to actual owners.

If you have as much money as you are saying to put down, I can’t imagine you’re going to have much more than a $1200 mortgage. I think that’s your safer route. This would terrify me. If the owner of the land were to die, their heirs could at any moment cancel your lease.

I’m sorry but it sounds like Ramsey has never heard of a residential land lease deal. Very surprised and I would not take advice from him on this. The caller had a legitimate question especially in today’s residential market and deserved a more expert advice.

This is more like any trailer park set up. A mobile home isn't worth anything to the banks after a few years, so it's all cash buyers. The pad rental is like the land lease fee. It never goes away. In my area people are buying 30 year old mobiles for $250000 and they get a little house. That same square footage on a freehold lot is $1000000. Basically paying for the right to be on the pad, but that right isn't that secure. Good luck moving the mobile anywhere if the land gets redeveloped and watch it go from $250000 to $10000 when it hits the road...

@JGalegria

10 ай бұрын

Yep. What you said.

A land lease is a rip off . Period

So Dave doesn’t like financing system when it comes to housing but loves it because of appreciation.

He can rent the home out when he is ready to move and overlay the land lease into the rental price, thus generating residual income. Maybe even AirBNB

@bik3r230

2 жыл бұрын

No one is gonna pay higher rent because you have to pay your land lease lol

@TATNThisAintThatNetwork

2 жыл бұрын

@@bik3r230 I imagine if a 2 bedroom home in his area sells for 400k he can get more than $800 monthly rent 😂

@JGalegria

10 ай бұрын

Only if it's permitted under the lease terms. I'm not sure if for example land lease /over 50s lifestyle communities are allowed to rent out their homes to tenants

Don’t do it!!!!!

and I would never do a land lease.

@2:30 Dave Ramsey is completely wrong, I got this through an FHA on leased land. (not the caller) the lease is for 70 years.

300k or 400k on mortgage is a dumb debts? And he's talking about pay $800 for a land lease? Lol

In Fiji Islands they have native lease land for 99 years. Its very cheap only $50 a month for the lease and whos going to be alive in 99 years to worry about who the house and land goes to. It can be passed down to the children and released at the end of the term. The whole idea is to keep Fiji land for the Fijian people so they will never become 2 nd class citizens in their own country. They own 87 % of the land. The only worry would be for your kids that inherit if the native people decide not to renew I guess.

@rometimed1382

2 күн бұрын

We have that here in BC on indigenous land. We lease the land for 99 years and we have an option every 20 years to pay them 1% of the appraised value to extend the term another 20 years. Sounds obnoxious but homes on leased land can be purchased for 50% or less than similar homes that are freehold. In value it's roughly $600,000-$800,000 less.

You also, have the risk of the owner goes down financially, you have a massive issue..!!

SRB it's still "Beuwater, &&Goerga Pacific / get to writing

What type of business is this?

that's like buying a home and then renting it at the same time while paying taxes and everything else.. if you take this deal then I got to sign for you to hold..

@JGalegria

10 ай бұрын

Rates and taxes are included on the weekly site fee

No

Why does he sound like he's using a voice changer? He wants to enter into a lease but doesn't know how long it's for? I don't think this guy should be entering into anything right now.

Love your channel but, You’ve already posted this video!!!

@latinos4cannabis376

Жыл бұрын

He posted it for this very reason.. a person like me who didn’t see the first one he posted but just happened to find it here on this second post….

I'd just get a regular mortgage on the entire enchilada.

Im still broke

@NumericalShenanigans

2 жыл бұрын

Same dude

@superblump87

2 жыл бұрын

@@NumericalShenanigans what steps are you both taking to change that?

@NumericalShenanigans

2 жыл бұрын

@@superblump87 I just recently became debt-free by following dave's baby steps. Currently, I am broke lol but I am working on starting my 3-6 month emergency fund. I'll get there soon.

I didn't watch the video, but NO!!!

First!!!

@Treerootz1

2 жыл бұрын

Imagine your life being this sad

@paulh3973

2 жыл бұрын

@@Treerootz1 not as sad as replying trying to make a guy feel bad you troll.

@lesterkuhns6044

2 жыл бұрын

Go get a job and get out of debt!😁

WALK AWAY

and I would never do a land lease.