It's fun to take a look at properties for sale in my area from time to time, especially the lakefront properties. They don't come up for sale often and at times there are some great opportunities to take on a quaint cottage with Lake Champlain lapping at the door.
What I've found more often than not is that many of the summer cottages that sell for under $200,000 in this area in and around Burlington are built on leased land, which is why the price is so right. You're buying the house, not the land it's on.
It's not a scenario that many are familiar with, but this recent article from Investopedia outlines the pros and cons of buying a home on leased land. All prospective homebuyers would do well to learn the details.
The most important question to ask when considering buying on leased land is "what happens when the lease expires?"
It's also interesting to note that while the cost of a leased land home maybe significantly less, a homeowner should expect to see higher HOA fee and/or land lease fee. In the end you may just be better off renting.