Leased-land has been a hot topic in Western Canada for a long time. So, the looming speculation tax has only served to muddy already turbulent waters. Luckily, we have put together a list of 8 reasons why you should buy your dream home in Kelowna on leased land.
1. The term is standard.
The sublease expires June 5, 2107. When the lease ends, your interest in the land will expire with it, but with the Legacy Fund at West Harbour, your investment is protected either way (see ‘The Legacy Fund’ below).
2. The ‘Legacy Fund’.
Normally with fixed term lease land, buyers worry about the perceived lack of equity. The Legacy Fund is there to quell this fear. West Harbour residents benefit from a future payout of substantial dividends to residents. So, just like a normal interest in land, you will have something tangible to hand-down to future generations.
3. You can sell the property.
The property is yours to sell anytime you want! The assignment just needs to be registered with Westbank First Nations (WFN) with a certificate of good standing. You can list with any Realtor you choose and watch the offers roll in on your beautiful home.
4. There are no outlandish restrictions.
The only restriction concerning the use of your property is to limit activity to residential or home-based business. There are other rules in most communities, but these are set and voted on by the Home Owners Association or strata, and they are there to keep the community safe and looking great.
5. You can get a normal mortgage.
When looking for a mortgage on a leasehold property, the lender will look at everything: income, credit score, down payment, and of course the property itself – just like a normal mortgage. Most major banks are familiar with mortgages on leased land properties, and the process is painless.
6. There are no outstanding obligations.
The lease at West Harbour is pre-paid, so you don’t have to worry about monthly payments! However, as with other strata-type properties, there are additional components which you are responsible for paying on a monthly ongoing basis (see number 7 below).
7. Insuring your home is a breeze.
You can get insurance for your home on leased land just as easy as a freehold property. So, you won’t need anything out of the ordinary to get insurance for this home.
8. It’s like a normal Strata.
Many leasehold properties such as West Harbour have a Home Owners Association (HOA) that manages the community. Similar to a Strata, the HOA ensures the community is properly maintained and continues to be an amazing place to live. And as an added benefit, HOA fees tend to be much less expensive than strata fees. We call that a win-win.
9. There is No Speculation Tax!
Plenty of ink has been spilled over the speculation tax. The speculation tax has many property owners worried about the extravagant tax cutting into their livelihoods. So, fortunately for you, the WFN has their own system of taxation. So, any property purchased at West Harbour is free of Speculation tax.
We want you to make the choice that fits your lifestyle. Avoiding the oncoming rush of payments and headaches that the speculation tax brings will be important for new home buyers. So, we know that you have to navigate the waters of Okanagan real estate waters carefully to find the dream home that is right for you. If you are looking for a way to live on Okanagan Lake with a private dock and avoiding the speculation tax then reach out to us and come have a look at our West Harbour Locations!