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Beyond the expected

Greedy Developer Should be Named and Shamed

By 54-11 24 May 2009 24

Today’s Sunday Canberra Times reports that a greedy Canberra developer has used his family to score 30 blocks of low-cost land to form a very lucrative land bank for himself, which is contrary to the policy for these blocks.

 He was told he could only have a maximum of five blocks, which would still have turned him a tidy profit, but he then got family members to buy up five blocks each.  The LDA has satsified themselves that this developer is going to build and sell all 30 blocks.

The Liberals have found this out under FOI, which surely must make us all wonedr what other rorts are going on, all of which detroy the government’s affordable housing policy.

This developer, and his family members who are part of this scam, should be named and shamed by the government (although as we’ve seen from other examples such as the ‘Bundah caravan park issue, these lowlifes are virtually unembarassable) to at least let everyone know who is making obscene profits by flouting the letter and the spirit of the housing affordability policies.

Canberrans, this developer and his family are among those who are pushing up the price of land and making it even harder for young poeple to get into the housing market, by creating a monopoly and by land banking these blocks.

[ED – Or possibly those in Government who are misguidedly distorting the market, which invariably works to the benefit of market insiders, should be apologising?]

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Greedy Developer Should be Named and Shamed
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captainwhorebags 8:00 am 26 May 09

GregW: my point is that just like any other business, builders should have to compete for potential clients, not lock up all the land supply and dribble it out as they see fit. If a builder can’t win clients based on their own merits, then I really don’t care if they go down the gurgler.

Sheepgroper: well I haven’t bought a house and land package here, but I’ve been told that’s how it works. I paid less thank $4k in stamp duty, not the $15k+ that I’ve heard is common now. Happy to be proven wrong.

SheepGroper 10:02 pm 25 May 09

captainwhorebags said :

My suspicions are that the government is encouring this because of stamp duty revenue. We only had to pay stamp duty on the land, whereas a house and land package attracts stamp duty on the total sum.

Are you sure? I’ve bought a couple of house and land packages in other states, and I paid stamp duty on the land only. Perhaps the difference is in the ACT the land you build on is leased not freehold?

ant 8:24 pm 25 May 09

captainwhorebags said :

My suspicions are that the government is encouring this because of stamp duty revenue. We only had to pay stamp duty on the land, whereas a house and land package attracts stamp duty on the total sum. Obviously the govt has a vested interest in selling house and land packages, even though in my opinion the home owner gets a raw deal.

Ouch, now that is interesting. Hadn’t thought of that but you are right, a package would send bigger bucks flowing to the government. wouldn’t it be nice if they stopped and remembered occasionally that they are meant to look after the people in the society rather than trying to soak them.

You got the govt with poor land release, a dodgy LDA and an abysmally poor, slow and expensive ACTPLA planning and approval process. Do you really blame these guys for taking advantage when they can?

I’m not a developer, but appreciate that these people take considerable risk when developing, and have to put up with all sorts of stigma and hassles.

Sure they’re mostly wealthy, but this is because they have worked hard and taken risks.

I’m not saying what they do is right, but if I were in their position, I’d likely do similar.

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