Now I’ve Seen It All!

I was browsing the housing listings in my state. Keeping up with the housing market is a hobby of mine. I was comparing housing in different cities, when I came across a listing for a newly constructed house for $159,000 in Bend, Oregon.

For those of you not familiar with the Oregon housing market, it’s tough to find any decent housing for under $200,000. And Bend is quickly becoming the next resort community in the state, so I didn’t expect to see new construction for under $200,00. I clicked on the listing to find this:

Construction complete: affordable, stick built (not
manufactured), home in Bend’s SE neighborhood of Golfside Park. Home
includes 3 bed, 2 bath, 1108 sqft, professionally landscaped, double
car garage, with a very smart floor plan. 99 year land lease at
$362/month. Financing options available. Buyer incentive! washer,
dryer, refrigerator, and a brand new car of the seller’s choice with an
accepted full price offer. Come by and meet your new neighbors today.

Did you catch it? I had to read it twice before I figured it out. This is a stick built home on leased land. Leased land that costs $362 a month on top of your mortgage. Why would anyone want to buy a stick built home on leased land?

I realize that the lease is 99 years, and presumably the person buying the house would die before the owner of the land could decide not to renew the lease, but wouldn’t the lease make it difficult to sell the house? At least if it was a manufactured home, you could put the wheels back on and move your house, but moving a stick built home is a lot more work.

I sure hope this isn’t a new trend in the housing market. It certainly doesn’t seem to be an idea that makes a lot of financial sense.

Tagged as: Home, Leased Land, Mortgage