Landbank, a practical way to participate in Landback

*Cover image by Matt Hrkac

Some First Nations friends and I have started talking about the idea of a First Nations governed and operated not-for-profit organisation called Landbank. A play on the idea of landback, it could literally be a bank to support First Nations people to regain land 'ownership' (or freehold custodianship). 

It is a simple idea to support non-Indigenous people to participate in reparations and support Indigenous people to get land and home ownership. 

We non-Indigenous people often get stuck, we are not sure how to give landback. Some of us hardly own any land ourselves, but we want participate in transferring landback into First Nations hands. Landbank is potentially one way we can respectfully live on First Nations land while contributing to First Nations reparations and landback. 

Here is how it might work:

1. Jo Doe is a non-Indigenous person who has been living in rented houses for over a decade on Gadigal Land. Jo doesn't like paying their money to non-Indigenous landlords who own houses as investment properties. If Jo could choose, Jo would rent from a First Nations person or organisation. But Jo can't easily find any First Nations person or organisation to rent from. 
2. Jo is torn. On the one hand, they don't believe owning private property, especially on unceded First Nations land, is conducive to a flourishing society. On the other hand, they don't want to fall further and further behind in terms of being able to cover living expenses and live a comfortable life. 
3. Jo decides there is no other way but to get into the 'housing market'. Over 10 years, they save up $100,000 to put down a deposit on a house. 
   
4. Jo finds a lovely small house on a small block of land not too far from Gadigal Land. They go to a conventional bank (Bank Australia as they are the most ethical) and get a mortgage. It's a $1m loan. Jo puts in their $100,000 deposit and begins paying $1,224 per week in repayments (5.84% over 30 years). Jo is locked into a 30 year contract with the bank. 
5. After a year, Jo gets increasingly uneasy about being forced to 'own' land within the capitalist property system. Jo also wants to participate in reparations and landback but is only just making ends meet as it is. Jo hears about Landbank. They read the website and set up a call with the First Nations bank to explore options. 
6. Jo meets with Chris from Landbank to discuss how Jo can continue living in their house while also participating in landback and reparations. 
7. Chris explains the process. Jo transfers the ownership of the land and house (the Title) to Landbank (Jo literally gives the land back and the government waives the stamp duty). Landbank then takes on the legal relationship with the conventional bank (Bank Australia) and becomes the sole owner of the Title and the sole entity responsible for servicing the loan. Landbank can hold the Title or sell the Title as they see fit. 
8. At the same time, Lankbank develops a binding agreement with Jo so that Jo can keep living in the house as long as they like. As long as they contribute to the mortgage repayments. Jo can also decide to leave the house at anytime and can request up to 20% of the house's value to support them to buy into or rent another house (Landbank can decide to sell the house or payout Jo from other funds). 
9. Jo can pick one of three options to stay in the house by contributing to mortgage repayments. One, Jo can agree to continue paying the full mortgage repayments they would have if they still owned the house ($1,224) and accumulate no wealth in the asset. Two, Jo can continue to pay the full mortgage repayments ($1,224) but they can accumulate some wealth in the asset which they can get paid out when they leave the home (for example, Jo may receive 20% of the value they have paid for the house so that they have some money to buy into another house or to rent elsewhere if they need). Three, Jo can pay market rent for the house (e.g. $700) and not accumulate any wealth in the asset (but pay a significantly less weekly amount and potentially be able to accumulate through other non-land based assets). 
10. In each case, Jo has given the landback to First Nations people through Landbank and secured housing for themselves for life. Depending on Jo's income and assets, Jo can choose to simply rent from First Nations people and contribute to landback by literally paying rent through Landbank, or they can go further and try to partially or fully pay off the value of the land so that Jo can give more of the value of the land back to the First Nations community. All options are powerful ways to contribute to reparations and landback. At the very least, even in the renting scenario, Jo has given reparations to the value of the house deposit ($100,000) but also secured the most stable form of rental agreement for themselves for life. 

Landbank allows non-Indigenous people like Jo to start to build genuine and meaningful relationships with First Nations peoples and communities through significant reparations.

Another way to participate in reparations and landback, which some people already do, is to use their Will to leave part or all of their estate to a First Nations person or organisation. While this is also a great way to participate in reparations, it defers the opportunity to make change now and build relationships now. It is also something that is susceptible to change down the track. People might decide to change their Will at any time or they may have people interfere with their wishes as they get older. Participating in a Landbank landback arranagement allows non-Indigenous people to get involved in reparations now. And there are many added benefits to starting earlier. The earlier Landbank starts accumulating assets the more it can do earlier for First Nations people and communities. 

So what do you think of this idea? What are our blindspots? Are you keen to explore it with us more?