Lease vs. Buy

As you reach your retirement years, typically your income is reduced from your peak earning period, and you must seriously consider methods of using your assets to your best advantage.

Whether your money is from a nest egg saved over the years, or profit from wise investments or the sale of your long-time home, is it in your best interest to tie up a substantial portion of it in the purchase of land?

Consider your options. One is to commit a large amount to the purchase of land - an arrangement whose primary beneficiary is the developer. The other is to purchase a less labor-intensive home on leased land and keep your funds available for discretionary or emergency purposes.

Some of our competitors still push land purchase, claiming land ownership frees you from additional financial obligations. However, this is not the complete story. Land ownership is an expensive way to live due to high property taxes and maintenance fees. In addition, it ties up your funds - money you can utilize only by selling the land or taking out an additional mortgage (and paying substantial interest to use money that was already yours.)

When you're considering a purchased vs. leased developed lot, look at the entire picture - financial, lifestyle and the business relationship. Be sure you get clear, concise answers to important questions. Are all utilities installed? Are there sewer and water impact fees? What landscaping and plantings are included? Are there parking areas and are they paved? Is there a monthly maintenance/association fee? Is the association run by nosey neighbors or professionals? Are there additional amenities and recreational facilities, and who maintains and pays for them?

Also consider who pays for maintenance, lawn mowing, trash pickup, street lights, tree and shrub trimming, and rubbish removal etc... Are there effective community standards, pet and noise restrictions and neighborhood patrols? And will there be professional management on site to help you in the future?

Property ownership is important to some people. Others enjoy the lifestyle advantages offered by a land lease community with protective standards. Evaluate both options. In the end, we hope you regard our Florida Communities as a worthy alternative.

The following table should help you get an idea in real numbers of actual fees vs. outlay of your cold hard cash over a ten year period.

Cost Comparison

Leasing vs. Buying

Home Cost


Home Cost



$0.00 Land
$388.00 H.O.A. $50.00
Water INCLUDED City Water $110.00
Grass Cutting INCLUDED Grass Cutting $60.00
Real Estate Tax INCLUDED Real Estate Tax $140.00
Street Lighting INCLUDED Street Lighting $5.00
Total Purchase Price $74,900.00 Total Purchase Price $114,900.00
Total Monthly Cost $388.00
Total Monthly Cost $390.00

Your Savings

Leasing Your Lot vs. Owning Your Lot

Savings of $40,000.00 X 5% Interest Earned = $166.00 Monthly
Adjusted Monthly Expenses = $222.00
$40,000.00 Is Still In Your Possession

The bottom line is leasing a homesite will save you money, gives you more security, and you have use of your money any time you need it. One final thought… The developer of a leased lot community has the responsibility to fund the community's repairs and maintenance forever. In an owned lot community, the developer will transfer the operational and maintenance responsibilities to the lot owners once the community is built out.

* The numbers, calculations and values are for example purposes only and may or may not be an accurate representation of the current market prices, rates for a specific community.
Based on 2015 Cash Sale Price. Comparison based on approximate costs. Costs subject to change

Ask us your questions. We'll give you honest answers.

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