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Land Rent Scheme/Scam

By 14 February 2014 6

Yesterday I was sent an advertisement for a property available under the infamous Land Rent Scheme. I was suprised by the $1.2 million+ price tag. especially since the scheme is supposed to assist with housing affordability and there are eligibility criteria for the scheme that would surely preclude anyone eligible from getting such a pricey house.

Have I misunderstood this?

Please tell me I have made a mistake, cos as a first home buyer who did not qualify for any unnecessary handouts, this kind of illogicity makes me want to cry…..
http://www.luton.com.au/listing?sales_listing_id=6010

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6 Responses to Land Rent Scheme/Scam
#1
MightyJoe4:32 pm, 14 Feb 14

It’s not clear if your paying $1.28million for just the house.. its only $16k per annum for the land rent component.

Yeah, its a bit of a joke to spend $400k for a 600m2 block which is my concern is my main concern, considering blocks used to be (of the same size) around $10-50k once upon a time, depending on location… Wright is where? the bush not Yarralumla.

#2
Genie5:08 pm, 14 Feb 14

According to the ad, the land is valued at $408k. Which can’t be correct as blocks that size were selling for around $600k in Wright. My guess is is a $600k land plus $600k house package.

Most land rent scheme properties are listed with both the land rent price and the full value of the property for those wanting to buy outright.

The ad is also incorrect as the 4% no longer applies.

#3
Maya1235:42 pm, 14 Feb 14

Genie said :

My guess is is a $600k land plus $600k house package.

Not a typical first home property then. $600k for a house is more than my architect designed house cost. But then again I didn’t want a huge McMansion that would cost heaps to heat. I also wanted some garden space.

#4
itsallme6:21 pm, 14 Feb 14

Genie said :

According to the ad, the land is valued at $408k. Which can’t be correct as blocks that size were selling for around $600k in Wright. My guess is is a $600k land plus $600k house package.

Most land rent scheme properties are listed with both the land rent price and the full value of the property for those wanting to buy outright.

The ad is also incorrect as the 4% no longer applies.

Not correct, the 4% still applies to land rent blocks that were sold by LDA under contracts dated prior to 1 October 2013.

#5
djk1:18 am, 15 Feb 14

Sorry Genie, you have given incorrect info on two counts:

1. 600sqm blocks in Wright definitely sold around $400k (see price lists here – http://www.molonglovalley.com.au/land-releases/previous-releases/#ws1)

2. As stated above, the new land rent conditions (ie. only eligible buyers, 2% land rent) only apply to blocks sold on or after 1/10/13. “Owners” of older land rent blocks are still free to transfer to whoever they like and continue to pay the 4%, etc.

So apparently that is actually a ~$900k house, not $600k!!

#6
HiddenDragon11:48 am, 15 Feb 14

Amazing. $1.3m plus the usual land tax (annual rates) would surely be enough for that house in that location(?). There might be some spare rooms to sub-let, though.

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