TarpineDrive
7/12/2016 11:05 EST
Does anyone have any information on this new Land Sales Budget Amendment Bill that was just passed? The act stipulates that non-residents who purchase residential lots are required to build a dwelling within 2 years with a minimum cost of F$250,000.00. Failure to comply will incur penalties of 10% of their property value every 6 months. Does anyone in this forum have any insight to share on this topic?
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aly5860
7/12/2016 16:54 EST
Yes, this is true. You can search for articles which have been posted online, for confirmation.
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pattyfly
7/13/2016 14:24 EST
I bought property in 1997 and no one had contacted me about this until 11 july 16. My big question is when did the 2 year clock start running? Dec 2014 or now?
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aly5860
7/13/2016 16:53 EST
If you Google Fiji Land Sales Act 2014, there is a PDF document that may help you with that information.
Otherwise contact the Minister for Lands Department and ask them to clarify the matter for you.
Cheers ??
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TarpineDrive
7/15/2016 17:45 EST
By chance, did you purchase your property from TDC, Taveuni development Co? Because that is when we got the email from TDC. This act came into effect on Dec 15th 2014, and it is just now we are hearing about it! Would've been nice to get a heads up!!
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pattyfly
7/16/2016 08:55 EST
Bula TarpineDrive...I am so frustrated with the way this has been handled. Here we are at the 11th hour w/o information to be able to argue or construct an intelligent letter. I have sent emails and even asked questions on Koro Island Communities Facebook page and no one is forthcoming with any answerers except to tell me to submit a letter asap. I do not read legalese and have questions about what the land sales act is saying. If you have answers to these questions a response would be greatly appreciated. 1. The Act is compelling those that bought before 2014 to comply with this new act? 2. Are they saying that non residents can not bequeath their property? Also, tdc is saying we should include an approximate $ figure as to what you are planning to build down the road, and how that is in line with the value of the property and the amount of the purchase price, and of course, your budget. Really...none of my emails have been answered and I have no way of constructing this letter they are requiring.
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pattyfly
7/16/2016 10:06 EST
I have been trying w/o much success to get answers to my questions. The only advise I get is to submit a letter to review committee detailing why I cannot build, give a time line when I plan to build include an approximate $ figure as to what you are planning to build down the road, and how that is in line with the value of the property and the amount of the purchase price, and of course, your budget asap. I have questions about what the Act says also...does it require that I build in 2 yrs even though I purchased the property before 2014. 2. As a non resident can I bequeath my property? Any ideas? have you been able to get anyone from TDC to respond to your inquiries?
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TarpineDrive
7/16/2016 13:10 EST
Bula PattyFly, We are just as frustrated as you. No help from TDC other than what they post on Facebook. I have emailed Julian Hennings/TDC and even emailed R. Patel Lawyers, with questions and got no response. To answer your questions (from our understanding on what we found online) #1: Yes, the Act is compelling EVERY NON RESIDENT to build by Dec 2016. Which is ridiculous! We did not even hear about this Act until TDC notified us via email on July 11th 2016 #2. Not sure on that. We think you can bequeath your property, but we're not 100% sure. As to your question about writing a letter: We didn't specify a dollar amount because we have no idea what it would cost to build there and our plan is to build 10 yrs down the road, so its impossible to estimate future building costs. I emailed a couple of builders -again, no response!!! James Patrick posted a sample letter on Facebook.. We used his letter and customized it to fit our situation. Seems like there are 3 possible outcomes to this, 1) Pay the fines, if you can't build. 2) Lose your property, 3) or wait it out and hope this Act is nullified. Its not feasible to build in 5 months! I can't get a hold of any builders, nor get any answers from TDC or their lawyers. We purchased this property before 2014, and did not agree to any of this! We would not have bought this property with these stipulations! This is a shakedown by the Fiji government, Its a Land-grab, or some form of a tax.
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pattyfly
7/16/2016 16:15 EST
I have done everything you have done except writing the letter. I figured I'd give it some time for people to respond. They have turned my Fijian dream into a nightmare.
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aly5860
7/17/2016 04:21 EST
Sorry to hear about all your trials about the land act.
I can at least tell you that the minimum value you need to spend is FJD$250,000
On average, a one bedroom bure costs about FJD$100,000
I am not sure how long it takes to build over there, but you can expect it to take at least 6 months, maybe longer, if you build over the wet season.
The reason the Fiji Govt. brought these laws in, is to stop people such as Chinese from "land banking" and then not building.
If you have bought this with retirement in mind, then you need to write a letter to the Govt ASAP.
Otherwise you are stuck with the penalties until such time as you either build or sell.
Our thoughts are with you.......luckily for us, we are ready to retire and invest in Fiji.
Whereabouts did you buy land?
TDC are failing in their duty of care, if they have not kept you informed.
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TarpineDrive
7/17/2016 08:39 EST
Its impossible to build in 5 months when you live abroad. It took the Fiji government 5 months just to send us the title to our land after we purchased it. I can't even get a response from a builder when I inquired about building on Koro Island.
I can sympathize with the Fiji Gov restricting the Chinese from "land banking" but you cannot change the rules in the middle of a game! This rule should not have been applied to people who purchased their property before 2014. Who's to say, they won't come back in the future and decide to impose a tax on your FJD$250,000 residence?
As for the minimum value we need to spend on the construction, that is 2x the amount we want to spend on a bure! We don't need a big home and cannot afford to have one. I agree with Pattyfly, this is is a nightmare, and a complete waste of money.
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TarpineDrive
7/17/2016 10:31 EST
"the minimum value you need to spend is FJD$250,000"
That is outrageous and laughable... we do not need anything more than a one bedroom bure. What happened to the concept of sustainability and simple living? I agree with Pattyfly, they have turned our Fijian Dream into a nightmare....
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aly5860
7/18/2016 02:32 EST
I understand your angst, but the Fijian Govt are only trying to look after their own people, who can barely afford to rebuild a basic weatherboard home with a tin roof, held in place by a concrete brick.
The devastation from Cyclone Winston can only be appreciated from being on the ground, especially Koro being the worst hit area.
You should be directing your anger/objections to the people from whom you bought your land and or the lawyers involved.....THEY have failed in their duty of care to inform ALL their clients, as to what is going on.
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aly5860
7/18/2016 02:35 EST
I understand your angst, but the Fijian Govt are only trying to look after their own people, who can barely afford to rebuild a basic weatherboard home with a tin roof, held in place by a concrete brick.
The devastation from Cyclone Winston can only be appreciated from being on the ground, especially Koro being the worst hit area.
You should be directing your anger/objections to the people from whom you bought your land and or the lawyers involved.....THEY have failed in their duty of care to inform ALL their clients, as to what is going on.
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TarpineDrive
7/18/2016 06:50 EST
Yes TDC was remiss in their duty to inform us, but whether they alerted us of this issue 2 years or 2 weeks ago, the outcome still remains. They are not FORCING everyone to build a FJD$250,000 house on a very unrealistic deadline then penalizing you with heavy fines if you can't meet their requirements. That is why we are angry...Its truly amazing how a person would just accept this kind of oppressive government action?
Enjoy your retirement in Fiji, and I hope that in the future, you will not be pressured to comply with more underhanded rules.
Lastly, I am getting off this post because it is not helping my situation other than making me more irritated.
Moce
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aly5860
7/18/2016 07:11 EST
I don't think it is oppressive......and l will enjoy Fiji..... I find Australia to be far more like a nanny state, with too many rules and too many taxes. Also the govt do not look after their own citizens like Fiji does. Rather, they would have people from other countries take our jobs, drive real estate prices up to the point where we doubt our kids and grandkids will ever afford homes of their own. Our govt have closed down manufacturing or sent it overseas.
At least Fiji government looks after their people and won't allow foreigners to simply sponge off them.
I don't have any issues with that. It's a refreshing change.
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christinecoghill
7/18/2016 08:33 EST
I have been left with 7 blocks of land in Taveuni Estates which were acquired by my late husband years ago. Efforts to sell any of them have failed to find a buyer, even at 10.000 a block. Nobody wants them. So I cannot sell and I cant build. Seems extraordinary to me. What next? I suspect the worst. I understand the Amendment does not apply to an "integrated resort". Can anyone define that for me?
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christinecoghill
7/18/2016 08:43 EST
As for the land banking by the Chinese, they are doing that here in Australia in a big way. Fijians are already protected as only about 9% of fiji is freehold. There is no need for this amendment. I have been going to Fiji for 35 years and watched all the coups going on. This latest law is so ridiculous it will drive away any investors.
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aly5860
7/18/2016 18:02 EST
Yes, that is true...you would think that 9% freehold would be enough protection and there are many people who believe it will have a reverse effect and hurt the shops and restaurants in towns that rely upon foreign investment
I have only been notified by a friend in Fiji this morning, that there has been a further amendment this year.
I will post it on here later today, for everyone's info.
Regards
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A2ZBULA
7/19/2016 07:32 EST
Are you looking to retire in Fiji. For anyone interested we can do you a 2 bedroom Bure with the land @ 250k plus you will get Permanent Residence. You however must be able to support yourself so you are going to need proof of income of no less then 15k a year. If you invest a further 250k we maybe able to get you qualified for Citizenship. Medical will be free if you are a Citizen otherwise make sure you have a good medical coverage. We are looking for a group of comparable folks be it former Fiji Residents,an Alumni, Church group,Rugby friends etc,looking for some where to retire together where they can look out for each other make up your own HOA Rules in a fully secured property. We also want to encourage our residents to do joint investments in income earning projects plus work on a volunteer basis passing on your lifes experience to today's generation's through our local school and hospital. Together we can build a facility create a trade school at the local school build a couple of rooms on at the local hospital plus help create a situation or join the existing where you can passon your lifes experience. The fishing and shellfish rite in front of your new home is phenomenal we have many sports clubs close by where you can help Coach so life won't be dumb and gloom it can be made as interesting as you may like so you won't go rusty as you get older amongst friends looking out for each other. Life will be as interesting as you and you friends want to make it. For more info contact me with your ideas ajseashell@hotmail.com
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BrizzyGirl
7/22/2016 19:02 EST
Hi, I just joined this forum today and did not hear about this issue until now. We have owned property in Fiji since 1985 and recently decided it was time to build and get out of the US! There is no way we would have our home finished in December, even with a kit home. Needless to say, we will be following this story with much interest.
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TarpineDrive
7/25/2016 10:40 EST
BrizzyGirl FYI: According to the ACT Pursuant to subsection (6). if construction is not completed within the prescribed period- ( a) a non-resident to whom the vacant State land or freehold land is sold.or leased shall be liable to pay to the State a fixed penalty of 10% of the price at which the vacant State land or freehold land was sold or leased; or (b) a non-residem to whom the vacant State land or freehold land is transferred shall be liable to pay to the State a fixed penalty of IO % of the value of the land at six-monthly intervals until construction is complete. 8) Any person who contravenes this section shall be liable upon conviction to a fine not exceeding $100,000.
(2) Without affecting the generality of subsection (l), the Minister may make regulations- ( a) appoinfing persons to enforce the provisions of this Act, which shall include the carrying out of inspections to assess compliance with the requirements under this Act; and (b) prescribing offences and penalties, not exceeding- (i) $50,000 or two years imprisonment or both, for an. individual; or (ii) $l00,000 or five years imprisonment or both, for a company."
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BrizzyGirl
7/25/2016 19:59 EST
Thank you for the information. My husband thinks that there is little possibility that they will enforce these restrictions as there are so many people affected and everything works in Fiji time. We had already planned to be in Fiji in September to pick the best site for our home and will do homework in the meantime as to what we can do to make all this as painless as possible.
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sadaboutfiji
8/8/2016 06:34 EST
Hi, could you please send a copy of the letter or where I can find it (the James Patrick letter). We are in the same boat with two pieces of land. Many thanks
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TarpineDrive
8/8/2016 09:04 EST
To whom it may concern My name is **** ****. I work in the welfare sector case managing vulnerable persons in the Australian community and have extensive welfare experience working within the Pacific region. I purchased in good faith Lot * K*** in the district of Cawa in the island of Koro in early 2012(Fiji Certificate of Title attached). The purchasing price of lot K260 was US$**,***.**. My intentions when purchasing the land was for retirement purposes. I was planning to build a self-sustainable environmentally friendly off the grid home and to offer my time and skill sets in the humanitarian sector to the Koro island community (both local and expatriate). I am not in the position to build within the prescribed period of time or financially able to abide by the building requirements specified in the Land Sales Amendment ACT 2014. Therefore, for your consideration, I am requesting an extension on the building requirements since my intention was to build when I retire (in around fifteen year’s time). I would like to request for your consideration a low minimum building cost. The requirements specified in the amended Act are beyond my financial capacity. I was not intending to build a dwelling of the amount stated in the Act. I believed in an idea of community living in self-sufficiency. I believed Koro Island was a place this idea could come to reality. I believe in the long term investment of this idea and there are many like minded people wanting to contribute to it. I believe this Act will only gain a short term small economic injection, missing out on the true potential of investors in the long term investment in the Koro island community. It will force a number of highly qualified people from varying backgrounds to relinquish their titles. Additionally, reputational damage may occur potentially having adverse affects on prospective investors wanting to contribute to your beautiful country. In thirty year’s time imagine Koro Island with a centralised multicultural diverse community of highly educated self funded skilled people. Think of what they could do for both Koro and Fiji itself. I truly believe this community could put Koro in the world’s eye as an inspiring eco-friendly community. This in turn increasing the investment in Koro in many diverse facets, I now fear this dream is rapidly being extinguished. Your advice and understanding would be greatly appreciated. Yours Sincerely,
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sadaboutfiji
8/22/2016 04:50 EST
Thanks for the letter, we are going to write one too. We have tried to explore the avenues with a lawyer but even then we are currently getting nowhere. We'd like to go down the residents trust route but need a Fijian citizen to be part of the trust. Has anyone tried going down this road? Thanks for your time.
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tuituraga
2/19/2017 23:46 EST
At this time government has not determined how they will enforce such law. However, they are trying to prevent land speculation that had driven up the prices of freehold land in Fiji whereby locals can not afford such. Fiji welcomes investment, thus why they are trying to make sure those non-citizens are truly investing not just speculating. Government has recognise the problem of getting houses by the deadline. Thus just need to submit a plan on what you intend to build, and start the process. Those that 'lose value' - value is just a number, but you still have the same land. There was previously a question about 'integrated tourism development. The Minister of Lands has issued a letter confirming that Taveuni Estates does not meet such. However, they have not clearly identified what will meet such definition. Note, the act is ONLY for FREEHOLD 'residential' land. Although about 9% of land if freehold, over half of that is tied up in large government owned estates such as Yaqara and FNU Ag in Navua. It should also be pointed out, Fiji does not have a land tax, thus land speculation is major drain on economy and public resources.
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