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Friends had a leasehold condo where the lease was coming to an end, with no guarantee of renewal. Things went crazy, everybody trying to sell before the lease ended.
not a problem if you're the first owner, could be awful if you're the last one.
Without arguing any favor for leasehold, I’ll point out that “leasing” is “renting”.
If one is truly going to stay long term in a home - by long term, I'd say at a bare minimum of 5+ years, a lease can be advantageous.
But leases tend to have far more strings attached than a traditional "rental" and your ability to move whether that be your circumstances change (need to move to mainland - or rents decrease in the area - your income increased and you want a nicer place, job change to another part of the island, more kids, etc) tends to make breaking that lease very painful on the person leasing and can wipe out or make even worse the affordability you got to begin with.
If one is truly going to stay long term in a home - by long term, I'd say at a bare minimum of 5+ years, a lease can be advantageous.
But leases tend to have far more strings attached than a traditional "rental" and your ability to move whether that be your circumstances change (need to move to mainland - or rents decrease in the area - your income increased and you want a nicer place, job change to another part of the island, more kids, etc) tends to make breaking that lease very painful on the person leasing and can wipe out or make even worse the affordability you got to begin with.
I understand your point … and again, not arguing in favor of leaseholds. But leasing is renting. The way the two words are used commonly refers to leasing as longer term than renting … but there’s no real legal difference. There are long-term rental agreements and short-term lease agreements.
One significant difference between these leaseholds and common rental agreements is the leaseholder can “sell” their position. Most landlords do not allow renters to transfer terms.
My point is when someone gets something for less than market value, often due to gov. mandate, somebody else takes a loss in one way or another.
That is the price we pay for living in a civilized society.
By your logic, we should get rid of publicly funded fire departments as well, because the people whose homes are being saved are getting it for free, and the rest of the residents have to pay for it.
It is the kind of third-grade logic you see, for example, among Ayn Rand followers.
That is the price we pay for living in a civilized society.
By your logic, we should get rid of publicly funded fire departments as well, because the people whose homes are being saved are getting it for free, and the rest of the residents have to pay for it.
It is the kind of third-grade logic you see, for example, among Ayn Rand followers.
That is the price we pay for living in a civilized society.
By your logic, we should get rid of publicly funded fire departments as well, because the people whose homes are being saved are getting it for free, and the rest of the residents have to pay for it.
It is the kind of third-grade logic you see, for example, among Ayn Rand followers.
With all due respect, your thinking is so far off in the weeds, as to not be suitable for grown-up discussion.
My logic, for example, neither says nor implies ANYTHING about getting rid of fire departments, and to assert such is, well, pathetic.
Just an FYI, the people whose residences were saved were NOT getting it for free, they paid for it in the form of taxes.
With all due respect, your thinking is so far off in the weeds, as to not be suitable for grown-up discussion.
My logic, for example, neither says or implies ANYTHING about getting rid of fire departments, and to assert such is, well, pathetic.
Just an FYI, the people whose residences were saved were NOT getting it for free, they paid for it in the form of taxes.
The cost of responding to fires is orders of magnitude more than the fraction of an individual family's taxes that are allocated for that purpose. The costs of the relatively few cases where this is required is heavily subsidized by the rest of society. Since you seem to find it so abhorren,, perhaps you should seek to live in places where such subsidizing is not done on a routine basis. Somalia comes to mind.
Instead of making it a leasehold - you simply make it a rental at a much lower monthly cost - a leasehold adds large unnecessary fees that only benefit the lease holder
If you truly are making affordable housing - you take the lease aspect out of it.
I see your point, but there's always the point about the leasehold adding greater security (and often at a reasonable price) to people's living situations, which some may value a lot. Not so easy to evict or refuse to renew a lease I'd wager
Keep on topic please and refrain from personal attacks.
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I used to own, and was on the board, in a building that had leaseholds in it. (I had a fee simple unit)
Leasehold is a nightmare. When the lease renews, it does so at current market rate. That equated to a substantial increase in the lease fee.
When they did allow the leaseholders to purchase, the price was what would equate to full market value for the unit. I recall one owner bought the lease. It made 0 sense to do that because they could have bought a fee simple unit for that price (my opinion).
Selling a leasehold is challenging as well, raising dues kill interest and affordability. The Leasehold owners seldom sold for much more than what they bought them for, even after extensive upgrades. Most leaseholds sold for half what the fee simple units did. So at the end of the day, that ‘next step up’ fund after selling a leasehold condo is almost insulting.
Point I am getting at is leaseholds may be another option, but they are very bad deals. (all my opinion)
Last edited by Dthraco; 04-14-2022 at 05:36 AM..
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