Advice required - leaseback deal on land in new developments

Viewing 3 posts - 1 through 3 (of 3 total)

Jomatty
Participant
@jomatty
Join Date: 2010
Post Count: 6
November 14, 2011 - 8:49 am
Hi all
I enquired the other day with Devine about buying land in a new development. I want to buy now and build before the 2 year mark.
He offered me an option to buy land which they will use as a car park for their sales office for 1yr + 2x6mth lease at 7%. I hadn't heard of leaseback land in new developments. I do know of leaseback display homes.
So as this land leaseback deal has been put forward to me, I don't know what I need to know. I did ask if the land will be concreted / asphalted for the car park. he advised no, it will be land / gravel.
I need to know some pro's and cons to consider.
Any thoughts / advice is welcome.
cheers coach
Mick C
Participant
@shape
Join Date: 2010
Post Count: 1,099
November 14, 2011 - 9:18 am
Soil damage is all i can say.
I had someone do something simliar ( use for a building site storage ) ; Advise them of the consequences….3 years later the land was contaminated with waste and chemical that has soaked into the land for the last 3 years; causing it be to ” unfit for residential purpose”
So do your research; im no soil expert.
Regards
Michael
Mick C | Shape Home Loans
http://www.shapehomeloans.com.au/
Email Me | Phone Me
Same Banks. Better Rates. Served With a Passion.
Scott No Mates
Participant
@scott-no-mates
Join Date: 2005
Post Count: 3,856
November 14, 2011 - 9:46 pm
if concerned Just put in a remediation clause (the epaa is quite stringent on the remediation requirements).
Land tax & cgt would be a bigger concern as you are waiting 2 yrs + before construction.