A Smart Buy
For a better life
Here at Boardwalk, the purchase of your home is a smart buy. Homes at Boardwalk are purchased with a 99-year lease, so you own the same home for less. For example, when you purchase a townhome at Boardwalk, that same townhome of comparable build, location, and amenities would cost $100,000 more on freehold land. Plus, data shows that leasehold homes appreciate at a similar rate as freehold homes and as an owner, you can rent out your home, renovate it, have a dog – the same as with a freehold home.
So, what could you do with an extra $100,000? We know how we’d like to spend it:
- Furnish your brand-new home
- Pay for your kid’s university education
- Travel the world
- Fill your garage with your dream outdoor gear, from kayaks to bikes to the ultimate camping gear
- Invest the remaining $25,000 to make some passive income
WHAT DOES IT MEAN TO BUY A 99 YEAR LEASEHOLD PROPERTY?
The Tsawwassen First Nation landowners enter into a leasing agreement with the developer, which allows for a sublease to homeowners for 99 years. This means that you own the home and the rights to that home in a similar manner to a freehold property but for a limited time. In other words, you can sell or transfer ownership of the home as freely as you could a freehold property.
WHY ARE TSAWWASSEN FIRST NATION LANDOWNERS OFFERING THIS OPPORTUNITY TO LIVE ON THEIR LAND?
These communities offer an opportunity for families to live in prime neighbourhoods on lands that have never been available to the public until now. This leasehold strategy allows the landowners to unlock the development potential of their land. In addition, significant municipal levies are paid through the development process, which enrich the larger first nation community and help to pay for much needed infrastructure and other community amenities.
ARE PROPERTY TAXES MEASURED THE SAME AS FREEHOLD WITH BC ASSESSMENTS?
YES! Property tax measures are similar to any other municipality. BC Assessment provides an assessment notice that shows the assessed value of the property, to which the mill rate is applied, similar to other municipalities.
CAN I GET A MORTGAGE ON A LEASEHOLD HOME?
YES! Major banks like BMO, RBC, and TD Bank are some of several lenders that provide mortgages to leasehold purchases. CMHC will also insure your mortgage when you meet the CHMC requirements and most local banks have packages that will meet your needs.
DOES LEASEHOLD TREND WITH THE REAL ESTATE MARKET?
The below graph illustrates the increase in average condo sale prices from 2008 to 2018, suggesting that condo prices increased at a similar rate for leasehold and freehold homes over the same period of time.
Increase in Average Condo Sale Price, 2008-2018
North Vancouver, Tsawwassen, Vancouver West Side Aggregate
Data show that leasehold home values move with home prices in the market as a whole, based on an analysis of the past decade of sales in Metro Vancouver. Put slightly differently, while leasehold homes can typically be purchased for less than comparable freehold homes, the rate of return on the investment in leasehold is virtually the same as in freehold