I thought I found a cheap IP in a regional Victorian town, as i read further it turns out it is “College lease land”. I see there are a couple around in the same suburb.
I’m not interested in purchasing….but does this mean you basically only own the house and not the land? Or is there more to it?I can’t see why you would bother.
Yes you own the house but you probably have to pay a lease fee of, 5% of freehold unimproved land values and rates(which increase). I dont think they are a good idea as they onlly give a net yeild of about 2, have low LVRs, about 50% and are difficult to sell.
Hence why they are dirt cheap!
Found these couple of links:
http://www.mildura.vic.gov.au/page/PagePrint.asp?Page_Id=2581
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