The $750,000 Sydney harbourfront bargains

[Bargain Hunter]

For those who wouldn't buy housing commission, think again.

The housing department wants to free up some funds to create new housing, the deal is on a 99 year lease.

Don't know how you get on the shortlist.

Read about it at....

http://www.smh.com.au/articles/2006/11/20/1163871338936.html?from=top5


Regards

Andrew

 

[grossreal]

hi all
the properties are lease not sale and have a waiting list they are heritage listed.
bargain not sure there are other properties that the goverment holds that are on peppercorn rentsthat are alot more valuable and again I would like to be on that short list.
trouble is you wont get on it nor will I.
so I give these articles the distain they deserve.
the cottages looking at the sea will be the next and the 3br building on pinch gut island.
or the old railway line buildings laying empty on commercial land worth about 6kpm central sydney.
the waste is a joke and not afunny one.

 

[geoffw]

The extra advantage of this is that, being leasehold, you would be able to claim stamp duty completely in the year it was incurred.

I used to live in Blues Point Rd, in North Sydney- just around the corner from the station. They were probably very similar- very run down, old, and in huge need of renovation and modernisation (I once overheard somebody tell his son, to be thankful that he did not live in a place like that; the back first storey verandah, where the shared phone with next door was located, had no railing left on the rickety wooden flooring- and the loo was right out the back). But the location was excellent, and the views (towards the bridge, city skyline and the opera house) were absolutely superb.

The properties (a whole line of terrace houses) were owned by the local church, and were being kept in original condition until the last of the protected tenants moved out (or died).

 

[handyandy]

hi all
the properties are lease not sale and have a waiting list they are heritage listed.
bargain not sure there are other properties that the goverment holds that are on peppercorn rentsthat are alot more valuable and again I would like to be on that short list.
trouble is you wont get on it nor will I.
so I give these articles the distain they deserve.
the cottages looking at the sea will be the next and the 3br building on pinch gut island.
or the old railway line buildings laying empty on commercial land worth about 6kpm central sydney.
the waste is a joke and not afunny one.

Hi Gross

You say they already have a waiting list? How did this waiting list start?

I would have thought a 99 year lease although obviously not as good as freehold is close to full ownership, certainly withing the first 50 years of the lease. I do assume that the lease cost are negligable ie the old peppercorn.

Cheers

 

[asdf]

Really difficult to put a value to leasehold here in Oz as I'm assuming theres not so many. Over in UK, leasehold has about 25% discount to freehold even on stuff with 40 years to run. Scary indeed, shelling out GBP300 only to find out your successors may not even be able to renew the lease. Plus there might be a fee for it on the renewal? Has someone who lives in UK modelled the pricing? Value should be a diminishing curve as time goes on, like time decay on an option. Theres a lot of risks involved. You reckon it will be fully disclosed in the PDS...?

 

[karina]

I read the article in the paper the other day and was a bit cheeky and called the dept of housing in Ashfield to find out what their plans were.

Spoke to a nice chap there who advised that no price has been set, no waiting list exists and he is certain they will be auctioned or there will be some type of tender.

Also the 750k price tag that the paper mentioned was a valuation they had done many years ago for assett purposes and he suggested the price might be closer to 2mil as that was the price they got for a sale they had recently.

so don't believe everything that's written in the papers!

 

[Shirley]

Hi GeoffW

Could you elaborate on your comment: "The extra advantage of this is that, being leasehold, you would be able to claim stamp duty completely in the year it was incurred."

Is it correct that all (or most?) property in Canberra is bought leasehold? Our son's recent purchase was a 99 year lease. Can he claim all the stamp duty on his next tax return?

Thanks
Shirley

 

[geoffw]

Could you elaborate on your comment: "The extra advantage of this is that, being leasehold, you would be able to claim stamp duty completely in the year it was incurred."

Is it correct that all (or most?) property in Canberra is bought leasehold? Our son's recent purchase was a 99 year lease. Can he claim all the stamp duty on his next tax return?

Shirley

That is correct for property in the ACT, though it does not apply just over the border in Queanbeyan/Jerrabomberra.

And it must be an investment property.

So, yes, if your son purchased an investment property in thw ACT, it's my understanding that, if he paid, say $20K in stamp duty, then he can claim all of that $20K against his taxable income for that year.

Be aware though that he will have to pay an annual land tax for an investment property.