What is the ACT Land Rent Scheme?
The Land Rent Scheme is an ACT Government initiative to increase access to affordable home ownership. The main purpose of the scheme is to reduce the entry costs and mortgage payments for homeowners. The scheme is also expected to be used as a means for people to advance their entry into homeownership, by saving to buy the land outright in the future while paying land rent.
Under the scheme, lessees rent the land from the Government. They are required to pay the Government land rent, calculated on the unimproved value of the block of land. Lessees are required to construct a house on the land within two years of the lease being granted.
The scheme allows a person to lease the land rent block of land on an ongoing basis or to convert the land rent lease to a traditional Crown Lease at a later date, effectively purchasing the land from the Government at that time. Land Rent is not a ‘rent to buy’ scheme.
Land Rent Information Session
Prior to entering the Land Rent Scheme, you are required to attend an information session at the CIT. This session will provide you with further detail on the scheme and allow you to ask questions.
For more information about the Land Rent Scheme visit the Economic Development Directorate’s (EDD) website at www.economicdevelopment.act.gov.au/buy-land-and-build/affordable_housing/land_rent
For more information about the Land Rent Scheme talk to Jaira Home Loans and our broker will explain in detail how the scheme works.