Best smoke and mirrors (bullshite) job yet?

[mikeey01]

Waitara, just seen it on the news.

It looks like it's been a powder keg for a few years, but wow an 840% rise, really?
Is this only the beginning?

2008
"We can be a good landlord at Waitara, says Te Atiawa"
http://www.stuff.co.nz/taranaki-daily-news/447464/We-can-be-a-good-landlord-at-Waitara-says-Te-Atiawa

2010
Crown buys land
http://www.voxy.co.nz/national/crown-agrees-buy-council039s-waitara-leasehold-land/5/66426

2013
Deal done, hike up the returns chaps!
http://www.stuff.co.nz/taranaki-daily-news/news/9414376/Sleepless-nights-over-840pc-lease-rise

[huff3r]

840% sounds bad, but it's only such a big increase because they were paying sweet fuckall already. Moral of the story? Don't buy leasehold!

[AllanB]

End of the day they have been paying f-all for 21 years. Tough.

Edit:

Stupid Council should have set a plan in place years back so they knew what it would be going up and have the opportunity to adjust their living to suit. But it is a Council so they don't give a .....

[BoristheBiter]

Fuck that, I would love to pay only $75 a week rent.

[Clockwork]

Fuck that, I would love to pay only $75 a week rent.

If I understand this correctly, they are not paying $75 per week rent, they are being asked to pay $75 per week "Ground Rent" assuming they own the house but not the land its on, its like being asked to pay an additional $75 p/w in rates.

Of course they can sell the house but presumably any buyer would factor the ground rent into the purchase price so the house's sale value will fall accordingly.

Its a tough break but it's the nature of leasehold land, it's not very common in NZ so I don't think a lot of the owners would have given much thought to what they were buying into.

[oneofsix]

whing whing whing. They were getting away with buying a cheaper property because it was leasehold, gee wonder why it was cheaper :doh: When they bought it their lawyer would have warned them it was leasehold, what that meant and when the lease was up for renewal (when the rent would rise) and it would have all been spelt out in the title, including the type of title they were getting. The property has been rising in value and they have been getting away with not paying the true market value for the land, shit they are lucky back rent can't be claimed. :crazy: Another boring media beat up, what's the real story that is being buried with this smoke and mirrors?


:corn:

[BoristheBiter]

If I understand this correctly, they are not paying $75 per week rent, they are being asked to pay $75 per week "Ground Rent" assuming they own the house but not the land its on, its like being asked to pay an additional $75 p/w in rates.

Of course they can sell the house but presumably any buyer would factor the ground rent into the purchase price so the house's sale value will fall accordingly.

Its a tough break but it's the nature of leasehold land, it's not very common in NZ so I don't think a lot of the owners would have given much thought to what they were buying into.

Got ya.

That's why lease hold is so cheap.