Property purchase for Buy and Hold (with Ground Rent)

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Property purchase for Buy and Hold (with Ground Rent)

Lakshay G.
Small Business Owner · Fallston, MD · Member since 2014 · 145 posts · 20 votes

Should I stay away from properties for buy and hold that has ground rent? Should any warning lights be going off or it "really" doesn't matter? It's not about how much the ground rent is, my concern is whether I should ignore the deal or not. 

Thanks in advance 

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  • Teresa F.
    Residential Real Estate Broker · Clinton, MD · Member since 2008 · 297 posts · 178 votes
    9y

    Generally, you can redeem ground rent for a few extra dollars so if you find a good deal I wouldn't let that deter you.  Best, Teresa

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  • Tom GimerBusiness Member
    DMV · Member since 2017 · 3k+ posts · 3k+ votes
    8y

    Ground rents are common in the City and County, have existed for 200+ years, and are accepted in the market. Don't let a property subject to ground rent deter you. Like Teresa said, the ground can always be redeemed pursuant to statute with the buyout figure based upon date of the lease and annual rent.

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  • Lakshay G.
    OP
    Small Business Owner · Fallston, MD · Member since 2014 · 145 posts · 20 votes
    8y

    Thanks @Tom Gimer  yes I'm going ahead with the deal. I'll be buying ground as well. 

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