One of the most common questions we hear from people exploring Larchwoods is some version of: “I like everything about it — but I’m not sure about leasing the land.” It’s a fair question, and it deserves a real answer. So let’s actually run the numbers.
The instinct to own the land under your home is deeply rooted. It feels like the complete version of homeownership. And for a long time, in most places, it was the only version on offer. But the assumption that owning the lot is always the better financial choice doesn’t hold up well when you look at it closely — particularly in a market like Olds, and particularly right now.
Where Does Your Money Go? A Land Lease vs. Traditional Homeownership Comparison
At Larchwoods, you own your home outright. Every home is brand new, built to residential standards in a controlled factory environment, and backed by a new home warranty. The only thing you lease is the homesite beneath it for $650 per month. That monthly lease includes your use of the lot, maintenance of common areas and roads, snow clearing on community streets, garbage and recycling collection, and the property tax on the homesite.
In a traditional Olds subdivision, you’d own both the home and the lot. Residential lots in Olds are currently running $125,000 and up. That $125,000 goes into your mortgage, sits in the ground, and isn’t available to you for anything else.
So the real question isn’t “ownership vs. leasing.” It’s: what do you want to do with that $125,000?
Running the Numbers: A side-by-side comparison
| Cost Component | Traditional Subdivision | Larchwoods |
|---|---|---|
| Land cost (upfront) | $125,000+ tied up in mortgage | $0 |
| Home purchase price | $450,000–$600,000+ | $310,000–$380,000 |
| Total financed | $575,000–$725,000+ | $310,000–$380,000 |
| Est. monthly mortgage (25 yr, 5%) | $3,300–$4,200/mo | $1,750–$2,200/mo |
| Monthly homesite lease | — | $650/mo |
| Estimated total monthly cost | $3,300–$4,200/mo | $2,400–$2,850/mo |
Estimates based on current Olds market conditions and Larchwoods Phase 1 pricing. Mortgage estimates assume 5% interest over 25 years with 10% down. Individual circumstances vary — speak with your lender and financial advisor for personalized guidance.
Even after adding the $650/month lease, most Larchwoods buyers are looking at monthly carrying costs $500 to $1,400 lower than a comparable new home on a purchased lot in Olds. That’s a meaningful difference, month after month, year after year.
The Case for Keeping That $125,000 Liquid
Here’s where it gets interesting. The $125,000 that you’re not putting into the ground doesn’t disappear — it stays in your hands. Invested conservatively at even 4–5% annually, that capital generates roughly $5,000–$6,250 per year. Your annual homesite lease costs $7,800. So in practical terms, the net cost of leasing — after your freed-up capital is working for you — is closer to $130–$235 per month, not $650.
The lease isn’t $650 a month. For someone who invests the difference, it’s closer to $150–$200 a month net. That changes the conversation significantly.
And there’s another dimension worth considering: when you put $125,000 into a residential lot in Olds, that capital is now concentrated in Alberta real estate. You already own a home — so you’re doubling down. If the housing market softens, both assets move in the same direction at the same time.
Keeping that capital in a diversified investment portfolio — equities, bonds, or a mix — means your financial picture is spread across different markets and asset classes. Given how Canadian real estate has performed relative to financial markets in recent years, many buyers — especially those approaching or in retirement — find that diversifying out of housing at this stage of life is a sound financial choice, not a consolation prize.
It’s Worth a Conversation with Your Advisor
The comparison between owning and leasing land involves your personal tax situation, investment strategy, retirement timeline, and estate planning — all things your financial advisor is best positioned to help you think through. What we’d encourage is to go into that conversation with the actual numbers in front of you, not just the assumption that owning the dirt is always better. For many people at the stage of life when Larchwoods makes sense, it isn’t.
What’s Included in a Land Lease Community?
It’s important to be clear about what $650/month covers, because it’s easy to think of the lease as simply a land rental, but it’s much more than that.
Your monthly lease at Larchwoods includes:
- Use of your landscaped homesite
- Community maintenance and common area upkeep
- Snow clearing on community roads
- Garbage and recycling service
- Property tax on the land
In a traditional subdivision, you’d be paying property tax on the land separately on top of everything else.
The community is professionally managed by Totangi Properties, and Larchwoods is designed as an owner-occupied community — homes are sold to people who plan to live in them, and every incoming resident goes through the same tenancy application process. That consistency matters both for the quality of the community day-to-day and for the resale value of your home over time.
Your Home Is a Titled Asset, Giving You the Freedom to Sell Anytime
One of the most common questions about land lease communities is what happens when it’s time to sell. The answer is straightforward: you can sell your home at any time. Your home is a titled asset — it can be mortgaged, sold, and transferred like any home. The buyer assumes the homesite lease and goes through the same standard tenancy application you did. There’s nothing unusual or complicated about it.
And because Larchwoods homes are owner-occupied by design, the community stays well-maintained and appealing — which is good for everyone’s resale value over the long run.
This article is for general informational purposes only and does not constitute financial or investment advice. Mortgage estimates are illustrative. Individual circumstances vary. We encourage all buyers to consult a licensed financial advisor and mortgage professional before making any purchase decision. Prices and rates referenced are current as of publication and subject to change.
Is a Land Lease Community Right for You?
Lower monthly housing costs. More capital available for savings or investing. Less concentration in a single asset class. A professionally managed community included in the fee. A fully warranted new home that you own outright.
For many buyers, it’s a smarter approach to homeownership, without compromise.
Have questions? Amanda would love to chat!
