Hi all,
I own a block behind the main street of a nice coastal town. It’s currently got an old house with 2 flats.
The street is starting to be developed with new offices, Police stn, doctors surgery etc.
It’s zoned for mixed use commercial/residential.I don’t want to sell & don’t want to develop myself, I’d rather go scuba diving.
So, I’ve been wondering …. would it be possible to lease the land very long term to a someone who wanted to build & lease out a mix of offices/units on the block? Do people do this sort of thing?
Guy
Generally not. Depending upon the state that you are in, leases longer than 10 or 20 years can be considered a subdivision (sometimes not permitted under LEP/DCP) or alternatively a way of getting around paying stampduty and not permitted.
Even if a long-term lease was feasible, you would only be getting a return on the value of the land, not the improvements
Ah well,
Thanks for the reply Scott.
I’d be happy with a return on the land value, just to retain ownership.Would a partnership with a developer provide RoI, lifestyle, and your scuba diving benefits?
Is the zoning likely to change in the area?
Perhaps you'd end up with a minority share of a much large pie?
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