Compulsory Acquisition on my Investment Property?

In Logan we have a gravity based sewerage system that can flow up Hill!

So it ain't just the water!!

 

Wow! They are acquiring there!! Maybe you could ask for some of the redundant rail corridor in exchange!! Bethania to Logan Village?

 

One of cases that I know of went to court with QC's, it dragged out for months, court case ended up well over 200k, mysteriously they ended up with their lawyer pulling out at the last court date which is very strange in itself, but they were forced to sign a no further court action doc before they accepted their extra offer of 200k which they had spent on legal fee's anyway, but the irony of the whole story is that they actually never used all the acquisitioned land, only about 1/3 of the land, then resold it as commercial years later.

 

That's not uncommon - however they must use (some) of the land for the purpose of the CA. In Desane v RMS, the land was shown not to be required for the works or to be used in the construction of the works.

 

All they did in this case was put a few portable offices on it, so it looked like it was in use, but they could have rented other vacant land in the area, but to resell it at a large profit in the end was just a big slap in the face.

 

IIRC in NSW the govt did change the legislation to prevent this from happening (landbanking/speculation by the acquiring Authority).

 

So in a nutshell, am I likely to be screwed over with a huge financial loss or be back shopping for a new property with a bigger capital than when I started?

 

I would seek legal advice if you're not happy with the offer, another issue I heard was that they made an offer in current day value but didn't pay out until over a year later, the owner ran a nursery on the property, and was unable to relocate with the money they offered because the land value had climbed so high within the one-year time span of waiting. They were onto it before the acquisition went through and started legal proceedings.

 

I haven't followed this, not sure what the outcome was but they have done similar things with the bushland acquisition levey funds.

Council looks to sell off properties two years after buying them

 

"On Just terms"..s51xxxi of the Constitution...... Market value for undeveloped vacant land determined by some dubious panel valuer that will happen to find its worth less than you paid or what its actually worth as a new home site. Not as a critical transport site. Hey in NSW they are trying to change laws so buyers of land for places like major development sites pay a share of their profit to the Govt. A tax on exploiting the zone. eg Badgerys and factory developmnets and rezoning. Sydney is the road acquiistion capital of Australia and they are paying very poorly with the terms being disputed constantly. . Plus duty and legals and out of pocket costs...DONT TELL THE BUILDER THAT or they may charge like you did win lotto with perhaps no recourse for the compensation. Let the solicitor deal with it... . Not winning lotto. But no CGT IF you understand the process to use a rollover. Its not autmatically exempt. The main residence rule wont apply but will the replacement asset occur ?

Wait while they do soil test without warning and the like. It can drag on. They may move it so your land isnt acquired and some neigbouring lots are and you have a 24hrs bus depot for a neighbour. Worlds slowest debt payers too.

And your holding costs are non-deductible continually. Doesnt sound like a win to me.

Government land acquisition and resumption

Involuntary disposal of a CGT asset

 

Is this in Logan? We received the same letter for one of our properties at work.
Major issue for us, as it is an operational site with a lot of infrastructure already built.
Hopefully it won't be enacted for a long time.

We had a huge fight with Transport over a resumption years ago for the airport tunnel.
8 years of land court and various appeals, many hundreds of thousands in legal fees.
We won in the end, but I would have rather avoided all the trouble. They played hardball and were hoping we would eventually run out of steam.

 

The Kerrigans come to mind.

 

I know people getting poor resumed for a new.school. they are getting ripped off. Valuation by Qld govt are based on local 450 blocks. They have 6000 m2 and a.house they built to suit 14 years ago. They are being played off against neighbours and have been told must be out by Feb 2022. Not sure what happens if they decide.to go to court. Would they get turfed before court? They have engaged a lawyer with experience in this stuff but given how fast markets.are.moving they will not be able to buy anything remotely similar. I think they are.in for a big loss.
Developers have been buying across the road.for 1.3 to 1.5m for slightly smaller blocks.

 

So just a quick update.
My lawyer has been in touch with them over the phone and apparently the response he got from them was more of a vague "general enquiry" response providing no proper date on when this project will even start since they haven't started on funding yet.
He has sent them an email to request a proper response in writing.

I feel like I'm losing sleep over this because I don't know what sort of position I am in. I'm still paying my mortgage to the bank and Logan council rates.

It's such a horrible thing for them to be financially crippling an unfortunate buyer with this.
If they're going to acquire the land at some point in the future, why do they need to drag this on?

I have been advised to continue on with building the property as per usual and rent it out if it's not acquired by then.
Doesn't seem like I have much of a choice either.

 

Bugga, at least you're preparing yourself for where you're going to stand legally. Try and get in contact with the Logan councillor Lisa Bradly, she comes across as a very down to earth person.

 

I called the number on the letter today and they couldn't give me a definite answer but instead booked me in for an online meeting early next week.

They are very vague with everything, saying things like "your property will potentially/likely be affected" or "we're still in the early stages". It's just not very reassuring when my bank account is still being drained every month.

They advised me to start compiling some questions for them to answer during the meeting. I'm contemplating forking out some money to have my lawyer sit in the meeting as well, given how inexperienced I am with this.

Are there any particular questions I should ask?

Thanks in advance.

 

They take that into account in the compensation. It even has it's own term, which I think is one of the cooler sounding ones:

'Injurious affection'

 

There is an story on 7 news this afternoon about residents unhappy about a rail upgrade ..... could it be this Bethania one?

 

Did you go through early acquisition? Or after intention to resume notice?