Drive around Chilliwack long enough and you will see listings that seem priced well below their neighbours. Often the reason is that the home sits on leased First Nations land. Here is how it works and what to check before you buy one.
What leasehold means
Much of the land around Chilliwack is reserve land belonging to Stó:lō communities. Homes built there are usually on long term leases. You buy the home and the right to use the land for the rest of the lease, but you do not own the ground. On my neighbourhood map these areas are shaded purple.
Why leasehold homes cost less
- You are not buying the land, which is a big part of a home’s value
- Fewer lenders finance them, so the pool of buyers is smaller
- There are often monthly lease or land fees on top of strata fees
- Value can change as the lease gets shorter
What to check before you buy
- Lease lengthHow many years are left, and what happens when it ends?
- Prepaid or monthlyIs the lease prepaid, or are there monthly payments that can rise?
- FinancingWhich lenders will finance this complex, and how much down payment do they need?
- Taxes and servicesWho collects property tax and provides services like water and sewer?
- ResaleHow long have similar homes taken to sell, and at what price?
Where you will find leased land
Reserve land touches many parts of Chilliwack. These neighbourhood guides explain the details for each area:
- Fairfield Island
- Chilliwack Proper West
- Chilliwack Proper East
- Midtown
- Cedarbrook
- Sardis
- Sardis Park
- Vedder
- Promontory
- Chilliwack Mountain
- Rosedale
- East Chilliwack
- Chilliwack River Valley
- Cultus Lake
- Agassiz
- Popkum
Is it a good buy?
It can be. Leasehold homes can be a smart way into a newer home or a lakeside cabin for less money. They suit buyers who plan to stay a while and understand the terms going in. If you are looking at one, send it to me and I will walk you through the lease, the financing and what similar homes have sold for.
