While my husband and I were looking into houses that were for sale, we discovered something that just didn’t make sense to us. Leased land. At first we thought, if this is what it sounds like, how exactly does that work and why? So of course we googled it and found this out: there are some properties that you could potentially own the home on, but the land you will never own, because someone else owns’ it. So what ever you might pay for mortgage, you also have to pay a leasing fee to the owner of the land. Now this just sounds ridiculous doesn’t it? I mean, the purpose of owning your own home and land is to eventually pay it off and just have property taxes to pay for once the payments are done right? Or better yet, if you’re really smart, paying cash for it and still only having to pay property taxes on this piece of land. Why would someone own just the home, and have to continue to make payments to someone else to lease the land. To us, this is just as bad as renting, because this person that owns the land will more than likely up their lease rate every year since taxes fluctuate. So other than making someone else money, why wouldn’t you just continue paying rent and then purchase your own home and land together?
If this makes sense to you or if you have or would ever do this please fill me in?!