If ever proof was needed that leasehold is the worst type of property to invest in then this is a perfect example it . As the lease goes up, the value of the property goes down and the only winner is the lease holder.
A thousand years ago this battle was fought and the “fee simple” or “free hold”system was introduced because of tenant farmers revolting over land rent increases.
Looks like some people never learn.
Iwi wins right to lift waterfront rent
By Anne Gibson <
Aug 13, 2012
In 1996, Ngati Whatua got the 20ha block of ex-railway land bounded by The Strand, Quay St and Beach Rd.
Ngati Whatua o Orakei Maori Trust Board has won a big victory in a long-running dispute over the value of its land near Auckland’s waterfront.
A professional arbitrator has ruled the iwi’s land at the apartment complex Parnell Terraces at 18-24 The Strand is worth $12.3 million, the higher end of the scale, meaning the lessees who own hundreds of townhouses and apartments and paid no rent for 15 years will now have to pay steep new annual ground rent fees.
That decision will also set a precedent for other property owners on the entire 20ha, including corporates in high-rise office blocks and other apartment dwellers.
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