Thanks for responding. Yes, I did get it, it just took me a bit to type my response. I appreciate your patience. The upside is that the land lease should allow you to control the land at a cheaper price. The downside is that being that there is no ownership of the land, the appreciation of the condo is much more limited. That's because there is no residual land value
based on ownership. Early in the lease, there is still value because there are so many years remaining on the lease, but as the years tick off, then the remaining lease value diminishes and the value of the improvements and the remaining useful life of the lease is all that remains. That prevents the appreciate that would accrue if you owned the land because as the land owner, at the end of 99 years, the landowner still has the land. BUT, for a condo owner, because the common elements are owned by association
and not the individual unit owner, the condo owner probably does not care because a condo owner only owns between the outer walls and above the foundation and under the roof. Thus, the condo owner's upside is already limited because of no fee ownership in the land, and because a condo project is not really likely to still be there in 99 years, the condo owner is really buying the space, not the land.
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