The property titles in Thredbo and Perisher are leasehold – this is the case with all real estate and properties located in the Kosciuszko National Park. Leases run until 2057 or 2058, and the leases have a certain number of bed licenses. All property in the National Park is for holidays, and this means you are not supposed to live in the property full-time.
If you are contemplating a purchase in the National Park then please get in touch and discuss your individual requirements with Michelle.
Thredbo Real Estate
Thredbo is in the heart of the Kosciuszko National Park. The National Parks and Wildlife Service administers the lease area on behalf of the State Government (Office of Heritage and Environment – OHE), the landlord. Kosciusko Thredbo P/L, KT, (a wholly owned subsidiary of Event Hospitality and Entertainment Ltd), a publicly listed company on the ASX) is the head lessee. You, the individual property owner, are therefore a sublessee of KT. KT are your “local council”, and provide all municipal services including water and sewage for an annual “bed license” payment or lease fee. Their responsibilities are clearly set out in the sub-lease document which, in line with the head-lease, details important things like your responsibilities under the sub-lease. The 50 year option to 2057 was taken up by KT in 2007, and new 50 year sub-leases are now registered for all the individual properties in Thredbo (thus all properties have individual Lot and Deposited plan numbers). The other thing worth noting is the leasehold title is something different from a financier’s point of view; you should speak to your lender about Thredbo to check their lending criteria. The current Royal Commission into the banking industry is causing changes in the way banks are looking at Thredbo, and which banks are most interested in lending for Thredbo purchases. You should speak with all banks at present, even the smaller ones.
Perisher Real Estate
In Perisher the set up is different to Thredbo as the majority of lessees deal directly with the NPWS. Lease negotiations with respect to the issue of extra beds under the NPWS Plan of Management, and the issue of new leases have been completed to those property owners who agreed to take up the OHE (NPWS) offer. A new lease offer was made to property owners in Perisher whereby new beds are available for the payment of a premium, as well as an extended lease to 2058. The basic advantages of having a new lease is the allowed flexibility of your physical bed arrangements, and of course having an option to re-new in 2028 thereby preserving the value of the property. The exceptions to the title arrangements outlined above are for apartment buildings whereby there is a similiar arrangement to the Thredbo leases, and individual owners have a sub-lease with the complex owner – for example, in Stables that is Stables Management who took over from Deanes in 2015 season, and in Heidis the sub-lease is with the group body corporate. Similarly, Perisher properties are not supposed to be lived in year round, as they should be made available for holiday tenancies.
Lake Crackenback and Alpine Way Real Estate
Outside the Kosciuszko National Park, normal torrens and strata title applies. Specifically, in Lake Crackenback, the title is strata and the zoning is SP3 Tourism. This may have impact on financing your purchase, because the property is zoned tourism.
In our experience we have found that dealing with experienced knowledgable solicitors is generally a more expedient way of dealing with conveyancing matters in the local area. We can help you with suggestions wherever you reside.
New Developments & Commercial Properties
There has only been one new development in the Kosciusko National Park in Thredbo in recent times. The primary reason is that the current leaseholder (Event Hospitality and Entertainment – ASX code EVT) is requesting an extension to the head lease past 2057, and is in negotiation with the NSW State Government. We understand that EVT is committed to spending a good deal of money on village improvements, but would like security of tenure past the current lease expiry.
With the recent change of ownership of Perisher, it is hoped that the Vail Corporation will commit to further development in the Perisher Valley. We understand there is ongoing discussions between Vail and the NSW State Government regarding the lease status of property in the village. Building work in the Kosciusko National Park generally happens during the summer, due to climate considerations and also because of statutory regulation against building in the winter time.
In Lake Crackenback, there has been more recent land releases, which may result in some new holiday chalets being offered to the market.
Thredbo & Perisher
In Thredbo and Perisher commercial properties include ski lodges (offering both winter only and year round opportunities), restaurants and food outlets (again with varying seasonal aspects), shops, hotels, and bed and breakfast properties. Ski Lodges offer tremendous lifestyle opportunities. Commercial properties in the snow are an interesting prospect as they are appealing to a buyer seeking lifestyle, but also require good performance as reflected in the accounts. Most buyers will require finance and thus audited accounts will generally be required for the purchaser to present to the bank.
There has been a lot of new building in Lake Crackenback recently. Lake Crackenback is zoned as a commercial/tourism zone – properties are for holiday rental. Simple development rules should be kept in mind – don’t over-capitalise your site, keep the design simple, make sure the appliances are easy to use, and that the home is uncluttered and simple to clean.
Storage is important so that owners can leave their holiday toys behind safely – a store room big enough for bicycles, skis, golf clubs and other sporting equipment is very useful.