Considering Purchasing In Thredbo NSW?
Here's what you will need to know...
Property within the Kosciuszko National Park at Thredbo and Perisher are leasehold rather than freehold. Kosciuszko Thredbo Pty Ltd (commonly referred to as KT) is the head lessee of Thredbo village from the NSW State Government, therefore, you as the individual property owner are the sublessee of KT.
At the beginning of 2007, KT renewed the head lease for 50 years with an option to renew again for a further 50 years. Properties must be used for holiday accommodation and the typical lease length for this is 50 years.
Bed Licenses
Instead of a local council, Kosciuszko Thredbo Pty Ltd (KT) provides all municipal services such as water, sewer, and waste collection. This means that instead of paying council rates, Thredbo property owners pay an annual bed license fee of approximately $1750 per bed. Each property lease is allocated a specific number of bed licences by KT. As of October 2020, in total, there is 4820 bed licenses within the village with approximately 4400 licenses issued. Sub-lessees can apply for additional bed licenses for their property at a cost of $70,000 per bed.
Strata
If you purchase a property in Thredbo, you are assigned the sublease on that particular property. For all intents and purposes, the property will behave as if it is strata title as most of the subleases require an active owner’s association as part of the lease. The levies for the owner’s association will be similar to strata levies in a body corporate situation and will generally cover building insurance and some maintenance provisions.
Finance and Legal
You will find that most major banks will lend to purchase property in Thredbo, under sublease from KT, with the property as security to around 50% of the registered valuation. Within the Contract of Sale you will find a copy of the head lease, the subleases, the charter of the owner’s association, geo-technical information, and other requirements of the Conveyancing Act. We highly recommend working with lawyers locally who are familiar with the conveyancing of Thredbo property.
For Further Information
If you have any questions or would like further information, please do not hesitate to contact our knowledgeable real estate agents by filling out the form below:
