Leasehold property in Oxford - questions...

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12 years 6 months ago #21286 by Andrea
www.trademe.co.nz/a.aspx?id=259911685

I think this has been discussed here before, but I can't find the thread... I've a friend who's seriously considering the above, but I think she's getting into more than she realises, and I believe the property in question is on land not in good heart (not to mention stony-boney because of its proximity to the river bed!). What are the in and outs/pros and cons of such a land deal?

Cheers
Andrea
Oxford

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12 years 6 months ago #309473 by wino
Leasehold is not generally a good deal given land values go up (and so therefore do rents) and improvements go down. You are way better to own the appreciating part of the asset not the depreciating bit.

That said it would depend on the lease (which would need careful reading by a lawyer who knows about these things anyway). Something with a right of purchase further down the track could be a good deal as a starter possibly for someone without much cash now but with a longer term plan. A lot would also depend on when the rent was up for review and what it was likely to go up by. The leases with 21 year rent reviews do give the occupiers a better deal than shorter rent reviews but often that rent saving is factored into the purchase price to a certain extent.

So find a good lawyer would be my advice

Never have a hangover - stay drunk

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12 years 6 months ago #309475 by cantyguy
Certainly worth investigating. I would get legal advice and look carefully at the terms of the lease.

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12 years 6 months ago #309541 by DiDi
Now you know I am a Northlander so have no idea about Canterbury but a couple of things struck me when I looked at the photos. First being that it is 55 acres divided into 7 paddocks. Jeez. Evenly divided that is over 7 acres per paddock and the fences look like cattle only - one hot wire of top? Barbed wire (yuch yuch yuck) in another photo. Loading yards, facilities etc? Are there bridges over the creek to get around the whole property when it rains? Sounds like hard work to me!

Just out of interest, are the stones common for that area and how did they get there - flooding? What effect will the Waimakariri irrigation plans have (vaguely heard about that) - maybe suck the creeks dry? Obviously I have no idea but if paying what equates to $100 a week rent plus all other outgoings is affordable and she looks at all the negative (scared to use that word) possibilities and it is still a go - worth a look.

Ooooh - and make sure they insulated under those nice timber floors!

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12 years 6 months ago #309549 by Andrea1
Many places in this area are old river bed, so very, VERY stony, and obviously the closer to the river you are, the stonier the soil. The Waimakiriri River used to be a sort of wandering braided river (can't remember the correct term) before the stopbanks were put in place over a hundred years ago, plus there are a lot of glacial deposits in places.

I don't think there will be any water taken from the Eyre River (near which this house is located), but that's a good question. The house would also probably be in a 100-year flood plain.

Andrea
Oxford

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