As above, new business idea!!!!!
How to rip-off present day buyers while maintaining the asset for future descendants
Anyone knows of legal restrictions for doing the above if i own a landed in-simple clear title without encumbrances and no public pipes below my land,
can i sell 103LH subsidiary proprietorship (or whatever you call it) with the FH land reverting to me after that period?
You sure can, I wrote to URA and this is the response:
We refer to your query on the subject matter which was directed to us by URA on 26 Nov 2009.
It is possible for owners of freehold land to, in a private arrangement, carve out a leasehold interest (e.g. 99 year tenure) for development purposes. The State only preside over the tenure of State lands sold via public tender for development purposes. For such State lands sales, the tenure granted is capped at a maximum of 99 years.
To avoid all the construction trouble, you may want to just buy a bland-new FH landed and re-sell it as a bland-new 99LH landed at a discount to your purchase price. I don't see the need to re-sell it as a 103LH landed.Quote:
Originally Posted by gfoo
I am thinking along this line since my purpose is to pass land - not landed house - to my kids. I think they may prefer to stay in cluster houses or condos with facilities and security.
same idea as me mate :) i'll call my outfit Far West ReorganizationQuote:
Originally Posted by Reporter
if i do this, before expiration prob in 50 years or so i'll sell the FH title to another developer, and leave my LH buyer at the mercy of the new developer - liddat neither myself or the new developer are directly tied to the LH sale anymore - the occupiers will have no one to call
Looks like there will be a lot of such re-titled development on sale from now on. Anyway FEO would probably had their legal teams done the necessary checks to ensure that its within the law. :rolleyes:
Yes !!!!! Think better buy more landed FH and literally be a LANDLORD.Quote:
Originally Posted by condoinvestor
Wow like that next time very hard to upgrade landed property liao. Everybody will sell as LH.Quote:
Originally Posted by sleek
Well, precedent had been set by FEO. :doh:Quote:
Originally Posted by xebay11
i heard the Ng family ..owns many houses in the watten estate itself ..Quote:
Originally Posted by sleek
over the years .. when they see a good opportunity to squeeze .. like when prop mkt collapse ..they zoom in and buy houses in the estate .. and rent them out
who knows .. one day the whole Watten estate may belong to them
Actually if FH owners can sell the land as LH in future, I would also suggest that in future, developers also be cut out off the equation, why not FH property owners develop the land themselves and sell as LH development? Developers do not add value to the economy at all, except cause inflation.
This idea may or may not work depending on how much the price is and the margin loss for leasing 99 years rather than selling FH rights entirely.
This concept will work if the price of selling as LH is not far from FH, if not the seller will have to sacrfice profit for the ownership fo the land.
That works for all FH ownership that gotten the land sometime ago with buffer in margins/cost.
We also havent have a survey in the other way : will you want to buy such a property?
I think they are plenty of them who woudl want to buy such property. If they are already people willing to fork out 1200psf for centra for 99 years. Imagine, how many would fork out for landed property.
Quote:
Originally Posted by tobuy
I think the seller's end will rank "Sell it LH on FH land" higher if the margin is close to an outright sale of the FH.Quote:
Originally Posted by xebay11
On the buyer side (of the LH) how will they be ranking this type of properties amongst others.
Will it be?
1. FH
2. 999 LH
3. LH on LH land
4. LH on FH land
I would think there is somewhat a cycle here.
If LH on FH model works, its may to propel FH ones upwards and the equation will kind of balance up again. The return of such LH on FH will therefore be thinner as it goes if the FH land is more expensive.
Just drawing up possible scenarios:)
Anyway if this works, better draw up a good will to pass it down generations, perhaps, one fine day, one of your descendents will be shocked by the plots of land that are in their name and just ran out of lease:D
this conversation so reminds me of Second Life
in what ways?Quote:
Originally Posted by gfoo