19 January 2010

Land Rent scheme picks up pace

| Gungahlin Al
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Community CPS is reporting that it has now approved more than 25 home loans on ‘rented’ land under the ACT Government Land Rent Scheme according to CT today (not online). This is out of 120 enquiries leading to 37 applications.

The Land Development Agency reports that 21 blocks have been settled and 179 have exchanged. The first house built under the scheme was occupied last month.

Seems good that this key home affordability measure has finally got going, as housing in Canberra is now close to being the second most expensive in the country. And remembering that this was once how all houses were built in Canberra. From the ACT Government’s point of view, surely an ongoing income stream would be preferable to once-off selling of all the silver in the cupboard?

Community CPS have raised concerns about lack of available land though. Not surprising given that any blocks going on sale now are being sold so far in advance of availability, that it is often a year after signing up before people can start to build.

[Ed] The trials and tribulations of the Land Rent Scheme can be seen on RioACT, here, here, here, here, here, and here. But looks like it might have worked out in the end.

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I was looking for Houses for rent in Golders Green but it’s look like the land rent sceme is a better investment then buying or renting houses.

There’s also the option to buy the land in future if the house owner wants to. So it might help people struggling to come up with the deposit for house + land. They could buy the house with a smaller deposit and rent the land, then buy the land when they’ve paid off the house or they have more income.

Not exactly helping people get into a better financial situation in the long-term, and come time to sell they will probably lose all the money they’ve paid off the house (which has depreciated?) plus obviously all the rent..

All the government has to do now, is continue increasing the price of land to get more ‘customers’..

sloppery said :

If you don’t like 1 year leases, why not ask your landlord about signing a longer one. That way, you can also set the rent, including any increases, for the entire lease term.

Even if I wanted a longer lease, I can’t renovate or landscape or do anything I would like to the house which isn’t even mine! I rather it be my own.

You can sell the house but whoever buys will either have to continue the 99 year land rent lease or buy the land and the house as a package.

If you don’t like 1 year leases, why not ask your landlord about signing a longer one. That way, you can also set the rent, including any increases, for the entire lease term.

This is fantastic news, now i’ll be able to build my dream home ALOT sooner and live in it without the woes moving, landlords and 1 yr leases.

That sounds like good news for affordable housing in the ACT. I wonder if the land renters have to get their house built by the developer building the suburb, or if they can get it built by whoever they want?

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