Land Rent Scheme/Scam

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.

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!!

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.

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.

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.

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.