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 some 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 then 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.
We’re glad you’re happy. Feel free to share more!
Sorry to hear that! Please share how we can improve.