Land Rent scheme picks up pace

Gungahlin Al 19 January 2010 8

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.

What's Your Opinion?

Please login to post your comments, or connect with
8 Responses to Land Rent scheme picks up pace
johnallice johnallice 2:55 am 28 Jan 10

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.

emd emd 9:20 am 23 Jan 10

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.

hax hax 8:55 am 21 Jan 10

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’..

T1G3R T1G3R 12:27 am 21 Jan 10

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.

sloppery sloppery 10:32 am 20 Jan 10

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.

Thumper Thumper 8:20 am 20 Jan 10

I’m still confused as to what happens when you go to sell the place? Do you actually own it, or do you sell up and repay the government the land price?

It still sounds like a long term rental scheme in which the government wins in the long run.

Then again, if it gets people into houses and out of rental properties it has to be a good thing, after all, the government doesn’t seem to want to go out of it’s way to provide much in the way of public housing these days.

T1G3R T1G3R 4:58 am 20 Jan 10

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.

emd emd 8:33 pm 19 Jan 10

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?

CBR Tweets

Sign up to our newsletter

Region Group Pty Ltd

Search across the site