The concept of landlease communities has been evolving and improving over the past 30 years. There are now so many positive benefits that this unique lifestyle has to offer. Successful retirement requires careful planning and astute investing on your part. Rapidly changing economic times are making us unsure if we have invested wisely to have enough money to live comfortably and financially worry free.

At some stage in our lives, housing needs change. Perhaps the lifestyle of a landlease community could increase your investment security and save you thousands of dollars. The homes are affordable, well designed and quality crafted to meet your needs. The sites are leased so there is no need to invest thousands in your site. With money you will save on your home and site you will now have thousands to reinvest or use for travel. Food for thought and an option you should explore further.

Advantages...

1. Lifestyle - You’ve looked all over Ontario, chose the perfect community for your planned lifestyle, and you want it to stay that way. In land purchase subdivisions, the developer sells off the lot and loses interest/control over the community. The community develops without an organized direction so the lifestyle changes. Landlease communities have guidelines for control, and better yet, the people who got you there want to keep you there. They care, and it shows.

2. Investment Security - Since the purchase price of a manufactured home located in a land lease community is significantly less than that of a home with land, it stands to reason that the down payment and monthly payments would be less.

3. Amenities - Communities generally offer some amenities: clubhouse, planned activities, nature trails, beach, fishing, etc. Keep in mind that you get what you pay for. Communities with on site pools and golf courses will have higher fees to pay to maintain these amenities. Private property usually comes with none of the above unless the owner installs them at his expense or unless the property is located in a subdivision.

4. Utilities - The provision and maintenance of the infrastructure which provides utility service to residents are the responsibility of the community owner. This includes the wells and septic services. On private property if the sump pump in the well goes out it is the home owner who must pay to repair it.

5. Monthly Cost - Generally speaking the monthly cost of renting a home site in a land lease community is less than the cost of owning the land. Of course rent increases are regulated under the Tenant Protection Act in Ontario and usually are in the area of 2.8% to 3% per year.

6. Resale - The selling price is more attractive than freehold because it does not include the price of land. This makes the home sale very attractive to seniors wanting to buy an attractive well-built home.

7. Maintenance - The homeowner is responsible for the maintenance and upkeep of his home and site, but the amount is minimal when compared with land ownership. The homes, decks and sheds are built with very low maintenance exteriors. In most communities, if needed, there are individuals who can cut grass, shovel driveways or powerwash your home or in some cases, management will do it.

8. Professional Management - Obviously only available in a community, this single area is responsible for the aesthetic qualities, the constant curb appeal, consistent enforcement of guidelines, all these things help in maintaining your home value as well as a myriad of other things that make the lifestyle of a community the best deal around.

9. Low Turn Over Rates - within the community, the longevity of residents residing with neighbours of the same age group and interests provides a caring atmosphere of friends sharing the same time of life together. Managers are interested in who purchases the resale homes. Advertising attracts similar residents as yourself to the community and maintains a standard of living enjoyed by all.

Bottom Line...

With $25,000 - $35,000 to invest you can diversify your investments, obtain higher returns and create security and opportunity. The return on your investment can be used to offset cost of living, expanding your horizons or reinvesting. You can’t do that with a piece of land without creating additional debt.

It’s a decision that you need to make to suit your need and goals. We believe when you add it up you’ll find that renting your lot makes “cents.”