Andrew Barr has announced some changes to the land rent scheme.
In line with the Government’s election commitment, a security payment for the Land Rent Scheme will be introduced to coincide with the release of land in the Molonglo suburb of Coombs.
The security payment is being introduced to discourage land speculation and make sure that land in new releases goes to those people who are genuinely interested in building a home.
The payment will assist in ensuring that Land Rent lessees are fully committed to building on their block and are aware of the financial implications associated with building a new home.
The security payment will count towards the first year of Land Rent payments, meaning there will be no additional administrative hurdles or extra costs incurred by genuine purchasers.
Households that are eligible for the discounted rate of Land Rent payments will also have a discounted rate for the security payment ensuring they are not disadvantaged by these changes.
The security payment will be $10,000 for standard Land Rent lessees and $2,000 for discounted Land Rent lessees.
Wasn’t the whole purpose of the land rent scheme to help people who couldn’t afford the up front costs of buying a home?