I want to know if it's easy for one person to own the land and someone else to own the house on that land. How do you set it up and has anyone here done similar? What about if someone dies, can it be all legally written up in a will so one person doesn't loose out?
We have a relative approaching 60 and still renting. She has a block of land (1 acre) that she is paying off. She hopes to use her super to pay out the block upon retirement (in about 6 yrs). Then that's it. No house, no money. I think she thought she could possible sell the block eventually and then go and buy a unit somewhere but to be honest I don't think she will get enough money to re-buy with costs etc.
We have tossed up the idea of building a house on the block and renting it out. This of course would be great cash flow as we would only be borrowing for the house and not the land. I don't even know if a bank will do this. We thought this could then give us a great rental and when she is ready to retire and we have the rental house working well for us, we could then purchase the block off her. So we own the house and land. With the money she gets for the block, she could fence off the back half of the block and build a livable shed/small home for her to reside in.
I think this would cause a bun fight between family because we would be the owners of the house she builds at the back and pays for. Can the house at the back just be valued upon her death and we pay out the people in her will. My thought is that we have allowed her to live on the land rent free and been the instigators and vehicle for her to be able to remain independent and in her own place, rather than live with a family member (which I can't see happening) or end up in govt housing.
Just wondering what your ideas or thoughts are?
We have a relative approaching 60 and still renting. She has a block of land (1 acre) that she is paying off. She hopes to use her super to pay out the block upon retirement (in about 6 yrs). Then that's it. No house, no money. I think she thought she could possible sell the block eventually and then go and buy a unit somewhere but to be honest I don't think she will get enough money to re-buy with costs etc.
We have tossed up the idea of building a house on the block and renting it out. This of course would be great cash flow as we would only be borrowing for the house and not the land. I don't even know if a bank will do this. We thought this could then give us a great rental and when she is ready to retire and we have the rental house working well for us, we could then purchase the block off her. So we own the house and land. With the money she gets for the block, she could fence off the back half of the block and build a livable shed/small home for her to reside in.
I think this would cause a bun fight between family because we would be the owners of the house she builds at the back and pays for. Can the house at the back just be valued upon her death and we pay out the people in her will. My thought is that we have allowed her to live on the land rent free and been the instigators and vehicle for her to be able to remain independent and in her own place, rather than live with a family member (which I can't see happening) or end up in govt housing.
Just wondering what your ideas or thoughts are?