Developed by the ACT government and available to purchase through CHC, the Land Rent Scheme allows you to buy a new home, while renting the land. This dramatically reduces your upfront costs because you only need a loan for the value of your house.
The flexibility of the scheme means you can obtain a mortgage to purchase the land component of your property at any time that suits you and your budget.
Yes! When you purchase a land rent property, you own the rights to the land and property so you have the same rights as you would under the traditional house and land purchasing arrangement.
Land rent payments are calculated at 2 per cent of the unimproved value of your land (the land’s value before construction of your home). For example, if the unimproved value of the land is $200,000, your land rent would be $4000 per year. Land rent is charged quarterly; in this case, it would be $1000 every three months.
CHC’s land rent properties require proof of eligibility. To proceed with a purchase you must meet each of the criteria below.
Your annual gross household income cannot exceed the income threshold of $160,000 (this may increase to reflect the number of dependent children you have). You do not currently own a property. At least one purchaser of the property will reside in the property when completed. In addition to the above criteria, you will also need to complete the ACT government’s CIT Land Rent Course, which CHC can assist you with arranging to complete.
If you are a first-home buyer, it is more than likely that you will also be eligible to obtain the First Home Owners Grant (FHOG) to assist in purchasing your land rent property. While you will need to check on your individual eligibility to apply for the grant, there are properties available for purchase from CHC, which sit below the specified threshold of $750,000.
There are also properties available which are priced at or below the ACT government’s Home Buyer Concession Scheme threshold of $470,000, which means you may also be eligible for a stamp duty concession.
CHC is an official provider of the Land Rent Scheme.
The benefit of purchasing a property from CHC is that land rent is only payable after settlement. This means there will be no land rent costs during the construction phase so you will not need to worry about balancing your current housing costs with land rent payments.
CHC are the land rent experts and can offer support and guidance and answer any questions you have to assist in understanding your first home purchase.
CHC has upcoming land rent properties available in Moncrieff, which will be followed by a future release in Throsby – register now.
During Homelessness Week 7-13 August 2017, CHC collected donations and sourced items for food crisis packs on behalf of UnitingCare’s Early Morning Centre on Northbourne Avenue.
The facility provides a warm safe place, offering free breakfast weekly and providing support and referral networks to those Canberran’s who are faced with a life on the street.
An impressive $250 was raised from a BBQ lunch, which amounts to the cost of 80 breakfasts for homeless people in Canberra; and an additional $500 worth of groceries to fill emergency food packs.
Touched by the staff’s generosity and willingness to make a difference, the CHC Board of Directors matched the contributions and donated a further $750.
On the morning of 21 August CHC staff representatives, including CEO Mr Paul Kane presented the food items and a cheque for one thousand dollars to Ms Nicole Wiggins from the Early Morning Centre after a tour of the facility.
“We are very grateful to the team at CHC for thinking of us,” said Ms Wiggins. “The money received will make a huge contribution to the 250 breakfasts and 60 emergency food packs we hand out each week.
“Here, we offer a menu put together by a nutritionist to include everything from a hot breakfast likes eggs right through to fruit salads, toast and cereals and donations allow us to continue to assist those in need.”
CHC is proud to support the Canberra community and to make a difference for those experiencing homelessness.