I wouldn’t want to own a home on land owned by someone else.
Nevertheless, there are a few communities in Scottsdale built on leased land. The Briarwood communities and Scottsdale House pop to mind.
Bob Bruss mentions the disadvantages of owning a home on leased land.
The only advantage I can see is they tend to be cheaper but to me the discount isn’t enough to make it worthwhile.
Occasionally, I’ll get a call from an excited home buyer who thinks they have found a smoking deal on a home but it turns out it’s on leased land. It’s deflating to find out they would have to pay several hundred dollars a month for a land lease fee in addition to the HOA/condo fee and mortgage payment. The land lease fee is not tax deductible.
Am I missing an advantage to owning a home on leased land?