Will Property Rights be Revoked by 2030 Transcript
So, yes, our property rights are and it’s happening now. Forget 2030, it’s happening right now. Every day there is something along these lines of people having their property confiscated, not getting anything for it.
The next question is from Adele. Do you believe property rights in Australia is safe or do you think they will be revoked before 2030?
Look, most people should know my view on property in Australia is that – we should probably clarify here.
Do you mean property rights as in the right to all property or are you talking about physical property? So, I’ll answer it in both things.
Physical property can be confiscated and taken off as very easy. They’re just going to say, we’re going to put a road through here and they can take land. In a way, that’s why I like lease.
Leasehold over freehold is because the government technically is never going to take anything that it already owns. So that is one area of it.
Now, the other thing is property rights, as in everything else, you own your watch, your
car, your clothes, your books, everything. Those property rights, those property rights are being whittled away more than what you know.
So the anti-money laundering laws, the confiscation laws around, “we think you’re a drug dealer”, so we’re just going to take all your money because it’s proceeds to crime.
All of those laws, watch them get used more and more and more as it goes on.
Now, we’ve seen it a bit here in Queensland lately where a couple of people got done supposedly for, I think, drug trafficking across borders, and they had all their property, literally all their property, their bank accounts frozen, their cars confiscated.
They basically couldn’t do anything. They were proven innocent and they’re still fighting to get that property back.
It should be immediate, plus they should get interested and they should get a lot.
But none of the government’s still holding on the club. In some cases, there was a guy done for hooning and the car was crushed but the car was stolen, and they reckon that he was the driver, and he wasn’t that crushed the guy’s car.
It was a heavily modified vehicle worth say, 60 grand or something like that. 70 grand.
And the government just said, bad luck. Your car was used in a Hurling instant even though it was stolen, they just went and crushed it.
So they ripped his property, even though he was legally entitled to have that car given back to him, the government just went ahead and crushed it.
So, yes, our property rights are and it’s happening now. Forget 2030, it’s happening right now. Every day there is something along these lines of people having their property confiscated and not getting anything for it.
Not surprising on that point.
Leasehold Vs Freehold Title
Could you explain in summary the difference between leasehold over Freehold?
Okay, so Freehold title is, as we know it is under the Torrens title is you freely own it and can transfer it, sell it, buy, sell, hold, add to it whatever you want.
A leasehold is basically a long-term rent in another instance. So the person who is leasing it to you owns it. And the Queensland State Government is a good one here for farmland.
They have what’s called perpetual leases, technically lease. You can get loans against it, you can trade it, you can sell it and all that sort of stuff.
Terms are anywhere between 60 and 99 years, and you’ve just got to go back to the lease holder to sign, and then you lease to extend that lease.
I’ve just done one on some property that I’ve got that’s part of one of the businesses, which is part of the aviation business, and they just renewed it for a 43-year lease.
So why 43 years?
No idea. I think it’s because the council has a lease with the state government. It was a 99-year lease 47, 47 years ago or 46 years ago, and there’s 43 years to run, so they can only lease it out to that.
So, yeah, a lease is just a long-term rent. And sometimes I prefer that because you have a proper contract that states what you can do, what you can’t do, what the default is and all that sort of stuff.
Yeah, that’s a nice simple way to put it.
How to Locate Leasehold Properties
How do you locate the leasehold properties is the final part of that question. Pretty much anything outside of a major city is lease hulk.
And you can do long-term leases on commercial property. I’ve had long term commercial leases on industrial property, industrial sheds, where I’ve taken a 30- and 40-year lease on someone that owns the freehold on it.
So you can create a lease that way.
So that’s one way of doing it. One of the airport leases that we have is we lease the ground for 50 years and then we build our own hangers and everything.
On top of that, we do it in the oil and gas industry. You’ll lease some ground off the Commonwealth of the Government or off a farmer, for instance.
Say we’re going to drill a well. That well is going to produce for, we think, 40 years. So we’ll take a lease for 45 on it. And you just do that with the underlying if a guy if someone has a crown lease or a lease from the government that is perpetual and in that lease, they can sublease.
We can then do a sublease from them. A lot of farming in Queensland. Western New South Wales northern Territory is all lease hold.
I think Northern WA is the same long-term lease. Yup.