Leasehold Property in Rural Aust.

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Sonja
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May 26, 2004 - 9:01 am
Would anyone who has knowledge or experience with leasehold residential property in rural NSW please share any thoughts on buying these properties.
Regards
Sonja
Sonja
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@sonja
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Post Count: 338
May 26, 2004 - 9:53 pm
OK… can anyone tell me what it is? I get the idea that someone else owns the land but that eventually, somehow, it has the potential to become yours. Is this on the right track? Anyone have any idea about this?
Thanks
Sonja
melbear
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June 1, 2004 - 2:26 am
Sonja, I don’t know anything about leasehold land in Aust other than in the ACT.
Do you know who owns the land? I’m guessing that it only has potential to become yours, if the owner is willing to sell it. they may not be, they may like the income (?) they are getting by leasing it (do farmers do this?)
In regards to buying it, I guess you would be buying the improvements only, and paying rent for the land. Once the lease is up, you may have to take the improvements away – so if it’s not a long lease, or won’t be renewed (or sold to you) I would be wary….
Cheers
Mel
kp
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June 9, 2004 - 7:26 am
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, KP