Forum Replies Created
Usually the case with regard to sheep or cattle stations. You buy the property leasehold, with a 50 or 99 yr in place. The crown or govt usually owns the land and is therefore the leaseholder. You can sell the lease as you would a freehold property, but a lease has a diminishing value, and reduces down to zero once the lease expires. When you say rural residential what do you mean, ie who is the leaseholder ?
I know of a mining town in WA where all the houses are on leased land, but there is security in that the govt will ensure leases continue or are renewed if they expire, while mining operations continue (many yrs yet).It is also possible that such towns can be “normalised” such that the leasehold land gets changed to freehold land, and then full ownership is possible.Such places then get taken over by a local shire council which then look after all the services and amenities.
Apparently its more common in Europe and UK to come across leasehold property (you own the building but not the land) SAme in many parts of Asia….Indonesia for eg. you have 3 types of land tenure: 1. right to use, 2.right to build, and 3. right to own…luckily in Aust we mostly have freehold ownership.
Cheers, KPHmmmm,
Great article…but how realistic is it to buy a property for $40k and have it increase 100% in 12 months, and then go back a buy two more at $40k each ?
Surely if your $40k property has gone up to $80k then all similar properties would have done the same ?
Don’t get me wrong, I am not knocking what is being said, just querying the realism of it .
Incidentally I thought multiplication by Division was the process of multiplying profits(or equity) by subdividing property. ie.. but sinle resident on a block zoned duplex.Its what I have been doing, and I don’t know why, but 2x half blocks are always worth more than the 1x full block.It seems to be a quicker way to build wealth (ie ramp up the equity or extract more value from the land)then waiting for property values to increase, even when the market is roaring along.Advantage as I see it is that you have one property, turn it into two, and then have more choices avail to you (ie sell 1 keep 1, reduce debt in the process and take some profit, as well as ending up with a NEW property = less maintenance max depreciation, etc)Downside is that you have holding cost during the subdivision/construction process and no income…Cheers, KP
Hello all,
Have noticed the mention of the 11 sec rule in a couple of threads.
Can someone explain what this rule is ?
Thanks, KPHi Neil,
The vendor is simply replacing the bank (by loaning money in exchange for monthly repayments and retaining possession of the title deeds as security till the loan is discharged )
Therefore I would think that the vendor has disposed of the asset as far as centrelink are concerned and stamp duty is due on exchange of contracts.
Cheers, KPHi Wayne,
Usually the demo company clear the block and rake it level as part of the deal, so that it is ready for the new building. All vegetation is also removed.Thats why its going to cost $6k plus. If you just want the house demolished and removed, then it is possible to get a quote from a salvage yard ofr the salvagable bits, or you can even do it yr self and sell the materials for cash. But you still have the cost of clearing the block to the satisfication of the shire council and the builder before you can commence re developing. Save yr self the pain and heartache, get 3 quotes and take the best one. Statewide are usually competitive and do a good job. Have used them for the previous two I have completed.
Cheers, KP…Hi Wayne,
Have just completed two such subdivions in Melville COuncil.Had all the same questions you have…simple answer was contact a surveyor. he detailed all the costs and arranged for demolition and all approvals with water corp, western power, alinta, and shire council. First one cost $18000 and next one was $23000.
this was for green title subdivision. Curious thing was that equity on the property increased by approx $100k (probably more on the second one)by the subdivision process. ie well worth the cost of using an expert to take all the headaches out of the process. Another curious thing, the equity position further increased once I built on the vacant blocks ( approx another $100k )
Any good surveyor should provide this service, however I am happy to recommend the one I used if you are interested. Pls email if you have any other queries.
Cheers, kp..
