Home is an expense FIRST, and an investment SECOND
With this quote in mind, it's easier to understand the unique value proposition of these properties (prepaid and non-prepaid Musqueam Leasehold houses).
*SCROLL DOWN TO VIEW CURRENTLY AVAILABLE HOMES*
By purchasing this type of ownership, it's reasonable to think of it as creating your own flexible-term (up to 2064 for non-prepaid or 2073 for prepaid) decades-long tenancy at a generally 'fixed' and inflation-protected low rental rate. This means substantially lower capital outlay upfront (read: lower downpayment) and much less monthly cash-flow being spent on housing for yourself and your family, versus laying out the massive amount of capital and cashflow typically needed to purchase a similar 'Freehold' home in Vancouver. And of course, this can then mean freeing up significantly more of your capital and cash flow for investing elsewhere (call me biased, but how about cash-flowing investment real estate...)
How does it work? Well, this depends on whether you're purchasing 'prepaid' or 'non-prepaid' leasehold. Let's break down the differences:
- Prepaid: these properties are all situated to the south of the Shaughnessy Golf and Country Club, along Yuculta and Staulo Crescent, Musqueam Drive, and the west side of 6303 to 6598 Salish Drive. The leases here all expire in 2073, and there is NO monthly or annual lease payment of any kind... they have all been 'prepaid'. You will pay annual property taxes that are roughly in line with what a similar freehold property on the westside would pay, and numerous major banks will conventially finance these with the same or similar mortgage products that are offered on freehold properties. Loosely speaking, price ranges for these properties in the early 2020's range from about $1.1m to $2m
- Non-prepaid: these properties are all situated between the golf club and S.W. Marine Drive, along Salish Drive (4107 to 4450) and on 5 crescents (Halss, Tytahun, Tamath, Sennok, and Semana), plus along Kullahun Drive. The leases here all expire in 2064, and there are annual lease payments of roughly $22,000 to $28,000, depending on lot size. You will also pay annual property taxes as the Prepaid section does... HOWEVER, getting conventional financing is extremely difficult (ask me how one may qualify for this). Loosely speaking, prices for these properties in the early 2020's range from about $400k to $1.3m (although the vast majority sell for well under $1m.)
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