12 Mar 2018

Manufactured Cash Positive in the Leasehold Living Market

‘Leasehold living’ is where you buy a larger vacant block of land, normally close to a town, not way out but, on the edge of town somewhere. You create an environment or ambience and put factory built transportable homes, a whole series of them, onto this land – just like a caravan park. Then you set up a body corporate. You retain ownership of the land, but you sell these houses. The people that buy these houses will obviously pay a lot less than what they would for a house on a residential block. It is a lower entry point, so it allows them to enter the market and you will recoup your money as well as secure a considerable profit, whilst retaining the land. You also own the business that underpins those properties. It could be retirement living, or holiday living, or even worker accommodation – it can be all sorts of things.

You can sell them off to investors, or you can sell them off to owner occupiers.

You normally need to have a bit of a hub of amenities like a pool, or tennis court. Potentially in some of these places, you can actually even take it further and go and get a pub or tavern license or perhaps a restaurant license to create another environment there – have a look at an area and see what is there.

If there is a need for low cost housing, as an investor, this is an effective way to provide it. Because you still own the land, you are not actually creating it, subdividing it off and selling it all up, what you are doing is creating a group title and leasehold living. It is just like a caravan park, but they are more than caravans; they are fixed houses.

We always recommend that you seek professional advice as this blog is for general information only