Hiya everyone!
I was reading a back edition of Australian Property Investor Magazine, when I came across a term ‘cross lease’ This lady (forgotten her name, slack I know! [
]) wanted to subdivide her block of land, but the council said it would take 6 months, so she found out about something called a ‘cross lease’ and was able (I think, it wasn’t too clear on the terminology and ins and outs) to subdivide and sell the block after 4 weeks!!!
Anyone heard of it and can explain it? PleaseCheers
Sooshie []“Giving is a Blessing, receiving is the bonus”
Hi Sooshie,
I can’t help you much with any detail on the matter but I sent an email to API seeking further info’ but I haven’t had a response yet.
I thought may be if a few of us contact API they may run something on it in a future edition if they don’t repond to individuals. I was also very interested in the concept as it sounded as if it would suit a deal that I’m presently trying to execute.
I will try contacting API again myself and let you know if I have any success.
Regards
WayneHi Wayne,
That was a great idea! I will give them a call too. If no response, I’ll email them. Hopefully they will get back to you.
Cheers
Sooshie []“Giving is a Blessing, receiving is the bonus”
Hi
I’ve only heard the term cross leases in reference to NZ.
Here’s some info that may help out (from a NZ perspective)
http://www.blomlaw.co.nz/buyers.htm
Cheers
David U
Hi David,
Thank you for that link! It was very helpful.
Ta
Sooshie []“Giving is a Blessing, receiving is the bonus”
Hi Sooshie,
me too only heard the term re: NZ although I know not that much about Aus properties so doesn’t mean you don’t have it here.I was looking for a post I am sure I posted a while ago here, this really long thing I paraphrased from the KPI magazine about what is involved in subdividing a section in NZ. But doing the search function i couldn’t for the life of me find it. I don’t know why. Anyway there were nine steps to it, and it can be expensive. That is why especially with the lower priced land towns people don’t bother and sell their houses on cross-leased land. it’s fine though and quite common over there, however get your lawyer to put in as a condition that he has to see the cross-lease and that it is satisfactory (get the lawyer to word it.)
Another thing they have over there is leasehold land, often council, church, or Maori-owned. it means the properties are often super-cheap compared to their value, because people shy away from it. Leasehold properties can be great for investors though. according to Dolf de Roos. i.e. one I saw advertised for 35K, valued at 55, would rent for 200 per week (it was 2 minutes walk from the polytech) rates were 800 p.a., land lease 1200 p.a.
Numbers still showed a good return…..cheers-
MiniHi Barb
I was looking for that exact article… Any ideas where to pull it out from?
Cheers
David U
do you mean pull it out from within the bowels of this site?
no, it’s weird, i tried searching for the words subdivide, sub-divide, minimogul, and couldn’t get the search engine to find it. Manually looked through a few threads but can’t remember what the thread was about and there are so many pages of posts these days….will let you know if i can find it though…or do you mean the magazine? it was in the issue of KPI with the masculine kinda looking woman on an orange/red cover.
cheers-
mini
]) wanted to subdivide her block of land, but the council said it would take 6 months, so she found out about something called a ‘cross lease’ and was able (I think, it wasn’t too clear on the terminology and ins and outs) to subdivide and sell the block after 4 weeks!!!
]
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