Buying on Hamilton Island
ISLAND LIFE – SAME BUT DIFFERENT
Investing in one of Australia’s most iconic resort destinations is a rare privilege. Its process is also uniquely different. From land tenure to Island service providers, from Crown consent to specific financier requirements, these transactions require expertise and experience.
THE PD LAW TEAM
Having acted for buyers, sellers and developers for over 20 years, our team has a wealth of experience in Hamilton Island transactions.
diving in – what’s different?
While many are familiar with buying and owning freehold title property like vacant land, houses or units, the concept of leasehold title is different. In practice though, for property holders on Hamilton Island, the difference is not significant.
Title to all property on Hamilton Island (units and land) is leasehold, stemming from a Perpetual Crown Lease from the
State of Queensland (the Crown) in favour of Hamilton Island Enterprises Ltd (HIE). This is known as the Head Lease, and perpetual means just that – the lease has no end date, as long as HIE continues to comply with its conditions, such as using Hamilton Island for the right purpose of a tourist destination and
paying Crown rent
what should I know?
Although you do pay “rent” under your lease, in this context it’s more like what you would have to pay by way of local
authority rates and charges, if you owned a freehold home or unit, rather than rent to a landlord.
HIE and its related service company Hamilton Island Services, fill the dual roles of local authority and utility service provider, providing all utility infrastructure and services to all owners such as water, power, sewerage, gas, waste management and roads.
As such, subleases typically provide that owners pay:
- Rent – calculated depending on the type of property you buy (villa site or apartment). These are similar to a local council general rate
- Outgoings – an equitable proportion of utility infrastructure charges for the provision of services to all Island residents and users, similar to local council service charges (such as sewerage and
- Service Charges – for your actual service
consumption like water, power and gas
- Body corporate levies – where applicable, these are much like admin and sinking fund levies found in
a regular community titlessetting.