Does this take anyone's interest ?
I will be driving through Richmond on Wednesday! Will only be buying fuel not property though. Don't think I could ever live there though unless the pay was ridiculously good! which I doubt. Would be good if you could buy and bring in a kit home and rent it out but I don't think that is what they are after.
Cost of construction has potential to be high in remote towns. Lenders may not offer high LVRs also. Just a couple of things to check before diving in.
Jacqui Middleton | Middleton Buyers Advocates
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Email Me | Phone MeVIC Buyers' Agents for investors, home buyers & SMSFs.
not to mention that it may have how many years you have to live there written into the comtract like the ex housing commission houses do in NSW (some times)
they also may make it obligation to employee local builders
so on the contract of sale you might have — minimum time of occupancy 7 years…
must build through the following companies – ***** **** or ***** ****
and if its like the HC houses in NSW with a minimum time of occupancy on there each time it sells before the time limit is up it has to restart (for example you live there 2 out of the 7 years and decided to sell, the buyer will have to sign a 7 year occupancy obligation) which would imply they arent a good resale home
as you would assume the local builders would charge more for building a home than your mate down the road
your house would depreciate in value while you live there
the occupancy obligation would be off putting for investors so locals or those who want to move there would be your only possible buyers and most of them would know the land sold for $1 so they wouldn't want to pay much more (if they are smart…)
than again it might not work like this lol
Kerryn101 wrote:so on the contract of sale you might have — minimum time of occupancy 7 years…must build through the following companies – ***** **** or ***** ****
and if its like the HC houses in NSW with a minimum time of occupancy on there each time it sells before the time limit is up it has to restart (for example you live there 2 out of the 7 years and decided to sell, the buyer will have to sign a 7 year occupancy obligation) which would imply they arent a good resale home
How does that work Kerryn? If you sign saying that you have to occupy for 7 years but then can just sell and leave whenever?
Just curious that's all, just have never heard that clause before.
Cheers
Next time some one tells me what can you buy for $1, I'll tell them a block of land!
You could sell them at the dollar shop !
Dubstep wrote:You could sell them at the dollar shop !
Actually i've seen these blocks advertised in The Reject Shop catalogue!
Too funny !
I bet the bank won’t lend, too high of a risk
jmsrachel wrote:I bet the bank won't lend, too high of a riskMy bank is willing to lend me up to 80c to buy that land. I am looking for a JV partner to finance the remaining 20c.
Stamp duty must be more than the land too!
Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
Hi Terry,
Good luck mate !
I do actually have 20c you can have, but you have to collect it yourself.
Hey N@than, its on the contract of sale, you agree that you will live in the house till the 7 years are up, but if the house goes on sale before the time frame is up than the new buyer must live in the house for a fresh 7 years. (some times they do it for 5 years and i have heard of them with 10 year obligations also)
housing commission have been doing it in areas they wish to mix the classes of people better for example about 2 years a go they sold up 30% of the houses around east nowra with this clases on the contract the houses sold for 50-90k renovated (fresh paint, new kitchens and bathrooms fully fenced yards)
we looked at a few houses back when they were for sale but the issue was not only the amount of time you had to live there and the fact that if you sold it you are obligated to restart that time frame for the new buyers, but the areas they normally do it in are really low return along with high abuse
some of the houses clearly had squatters in them and a few we even seen used needles and drugs laying around the yards
but the logic behind it is they will get home owners in rather than investors, as the home owners will "hopefully" raise the quality of the area and bring more jobs to the area
in all honesty in the areas we have seen these conditions of contract, i personally wouldn't take up the offers unless i was childless, 7 years obligation of living there with your family is not something i want.
Some WA country towns with diminishing populations ran similar programs 10 – 15 years ago. The intent was to attract people who could add value to the town in return for them getting a cheap property. Some of the early programs were reasonably successful, others not so. Preference was given to tradies who could help local farmers, towns folk and businesses through such activities as panel beaters, mechanics, auto electricians and so on.
Unfortunately the attractiveness of a cheap house the culture shock of moving to a small country town
Do you know if there is any restrictions place on this offer?
And does anyone have any updates please
Of course there would be restrictions. THe land would be worth much more than $1 and this is being done to help the town economically.
Probably such as:
1. Must build on it within x months
2. must be owner occupied.
Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
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