Save $20,000 to $80,000 off the price of the home you want to buy:

Ground leasing for Housing Affordability an ancient land tenure reinvented:    In times and places of rising home prices. A ground lease is one proven way to stem the rising costs in the residential housing market  Ground leasing’s roots are embedded in English common law dating back to feudalism, the Norman Occupation, and the Magna Carta.  An ancient land tenure form reinvented; ground leasing though innovative models that strive for perpetual affordability continue to evolve.

Any residential home, not in an HOA, can be converted to a Ground Lease Property.

Three Reasons to buy a home with a ground lease:

1.   The Home Buyers equity commitment is smaller because both the price of the home and down payment  is less. a $500,000 home traditionally needs 20% ($100,000) down – a ground lease that drops the price to $441,000 (FHA loan eligibility) only needs $13,200 down     A $60,000 savings on the purchase of the house and a $86,800 savings on the down payment 

2.  The borrower can redeploy assets saved form the lower price of the Home and the much lower down payment necessary into other investments. 

3.   The buyer and in their family can afford to live in a better a home for their family money  – In the example above Your family is living in a $500,000 home for $441,000. Your home also appreciates from a  lower base.

In the Greater Phoenix area, there are thousands of Leased Fee Homes and subdivisions . The two oldest subdivisions are Casitas East and Casitas Tempe in Tempe and Briarwood in Scottsdale which both were developed in the late 1970’s –Over those 40 years over one thousand home have been bought and sold in the subdivisions  the average price increase in both developments over the 40 plus years has been over $300%

Large chain stores like Starbucks and Whole Foods use ground leases to expand their empires. This allows them to grow without saddling the companies with too much debt

Under Arizona law when you buy a home that has a ground lease on it – you (The lessee) have an absolute right and title to the home and an absolute right to be on the land for the next 99 years. The lessor has no rights of ownership for the first 99 years except to collect the monthly leased fee rent.

For more detailed information on the benefits of Ground lease please go to our Learn more about ground Rents Tab (above)