Lease Hold Block? Can someone explain

[Hysteria]

I have just come across this search for a property which is a leasehold block.
Can someone explain to a newbie what this means.
Here is the link as well:
http://www.realestate.com.au/property-house-qld-blackwater-107314281

Thankyou

 

[Aaron_C]

The listing doesn't mention leasehold?

 

[porp_e]

The listing doesn't mention leasehold?

I had to read it a few times to see it too, buried about 3/4 in: "Downstairs on the 700sq m Leasehold block there is room to house two cars"

My understanding of leasehold (in a very basic way) is that someone else owns the land and you pay a fee every year to continue living on it. There is a lot of property like this in Auckland NZ I've noticed...

 

[Aaron_C]

I had to read it a few times to see it too, buried about 3/4 in: "Downstairs on the 700sq m Leasehold block there is room to house two cars"

My understanding of leasehold (in a very basic way) is that someone else owns the land and you pay a fee every year to continue living on it. There is a lot of property like this in Auckland NZ I've noticed...

lol I missed it, well spotted.

Generally leasehold means that you are 'leasing' the land from the Government on a very long lease (usually 99 years). This is very common in the ACT where most properties are leasehold. There are also examples in NSW like Miller's Point.

At the expiry of the 99 years, it is generally accepted that the government will renew that lease for a nominal fee for another 99 years or so. I think the only other main difference is when the government chooses to compulsorily acquire your land they will only compensate you for the building, not the land because you don't 'own' it.

 

[mattnz]

ACT may be a different story, but in general don't touch leasehold land.

Land is what increases in value. If you don't own it, you wont achieve capital gains.

I have looked at leasehold properties in Auckland, where the lease costs have become more than the rents received from the property. They struggle to sell these properties at all.

 

[Aaron_C]

ACT may be a different story, but in general don't touch leasehold land.

Land is what increases in value. If you don't own it, you wont achieve capital gains.

I have looked at leasehold properties in Auckland, where the lease costs have become more than the rents received from the property. They struggle to sell these properties at all.

It depends on your purpose. Most properties people would purchase are freehold anyway. Leasehold may be beneficial if the land is used for farming or some other commercial venture.

 

[Hysteria]

Who and why would you buy one of these properties? They must be hard to sell if you dont actually own the land at all.

 

[luckyone]

You don't have a choice in the ACT, they're all leasehold. Sux!

 

[james_w]

I have just come across this search for a property which is a leasehold block.
Can someone explain to a newbie what this means.
Here is the link as well:
http://www.realestate.com.au/property-house-qld-blackwater-107314281

Thankyou

The land on that property would be owned by the mines, and the lease would most likely be shorter then 99 years have looked at a similar property and the lease end date was 10 years, lease is not much different to land rates in that area cost wise.

 

[cadence]

You don't have a choice in the ACT, they're all leasehold. Sux!

learn something new every day ....