Your probable immediate negative reaction to lease land purchase may be erased by a little insight into the reasons for and benefits of conveying this type of title to you.

Compliments of : Katia Glancz,Tarbell Realtors                                                                                      760-835-2207

FINANCIAL BENEFITS

The primary difference between buying land and leasing it is obvious: Lease land reduces the cost of a home by 20%- 30%. Once a structure is built, the land beneath it can be of no other use to the homeowner. So by owning on lease land, the homeowner gets the use of the land without the capital outlay– and can afford a far more luxurious home for less money. Furthermore, since no one actually owns a home until the loan is paid off, most so-called "land owners" don’t really own their property for 30 years.

This simple logic has been sufficient to satisfy thousands of home and business owners in Palm Springs. But, for those who like to explore all ramifications, here are some more facts to ponder, posed in the form of most asked questions about Indian– Lease Land.

#1. WON’T THE VALUE OF MY REAL ESTATE CLIMB FASTER IF I OWN THE LAND?

While resale values are determined by many things, all available figures indicate that resale of homes on lease land have climbed in exact          proportion as other homes in the area. The              

Condition in which you keep your home, has far more influence on its resale value than the fact it is, or not, on lease land.

#2. WHAT ABOUT MY CHILDREN AND GRANDCHILDREN & WILL I BE ABLE TO PASS A LEASE-HOLD ESTATE ON TO THEM?

Of course. You can give or sale your home on leased land just as easily as on fee land. However

If you are concerned about your heirs between 30-60 years from now (The length of the lease), there are four realistic questions you should ask yourself .

A.          Will they really want a 65 year-old home when the average life of most California residences is estimated at less then 50 years?

B.        Considering that most residences change ownership about every 5 years (which would be more than 10 turns of ownership during the life of your lease) is this home really likely to stay in your family 65 years?

C. If you have a savings of $206 per month($2472 per year) by leasing land vs. purchasing,    over the life of a 65 year lease, your savings would total $160,680 even if it earned no interest.

If you kept this monthly savings in an account paying 10% annual interest, your savings would    exceed $1,250,000 over 65 years (and even more if interest were compounded monthly). Wouldn’t that be a better way to take care of your       grandchildren?

D. What happens at the end of the lease? Since there is no legal restriction prohibiting the Indian from selling their land, you or your heirs may have the option to purchase if you wish to do so. However, most probably, you would be offered a new lease based on conditions existing at that time.

There would be no financial advantage to taking the land back and, as the tribe long ago observed,

"One cannot eat dirt"

#3. WHY DO SOME PEOPLE COMPARE A HOME ON LEASED LAND TO A VARIABLE ANNUITY LIFE INSURANCE POLOCY?

Probably because it’s to understand just a variable annuity gives you the possibility of gaining from both fixed interest rates and asset appreciation,

A home purchase on leased land gives you a monthly savings along with the possibility of home appreciation.

It can be an investment hedge whether home prices are rising or falling. During an "up" period, your home will increase in price. In a "down" period, the dollars you did not spend on land, but invested in fixed interest savings, will continue to increase.

Today building on lease land is no longer an advantage reserved for business investment buyers.

Now , in Palm Springs, California, it is something any home buying family can enjoy, Thanks to the honesty, intelligence and perseverance of those original desert dwellers who were sincere when they said, "Welcome, brother, my home is your home"

There are tax benefits in purchasing Leasehold properties. However, taxes are unique to the individual and it is suggested that you consult a tax expert.

For more information: B.I.A. 760-416-3289