Deciding whether to own or lease the land in a 55+ community?

When buying a home in a 55+ community, one key factor to consider is whether the land is owned (fee simple) or leased (land lease). This distinction can affect everything from your monthly costs to your long-term investment.

Land Ownership (Fee Simple):
You own both the home and the land beneath it. This is the most common type of real estate ownership. It often results in higher upfront purchase prices but may offer better long-term value. Owners pay property taxes on both the home and land and typically enjoy more autonomy over the property.

Land Lease Communities:
In a land lease community, you own the home, but rent the land it sits on—usually through a monthly lease agreement with the community or landowner. Lease fees vary and may include additional services like amenities, landscaping, or utilities. While homes in these communities often cost less up front, you’ll want to review the lease terms carefully, including duration and annual increases.