Are you the owner of a large land holding or hobby farm across Melbourne’s Urban Growth Zones (UGZ) and preparing for the 2019 annual land tax and rates bills?
If your land is designated UGZ you will have seen a major increase in the valuation of your land in 2018 which has caused large rises in property taxes.
Perhaps you are asset rich and cash poor, then one way to relieve the tax burden is to sell your land and unlock the profits.
However, with today’s falling land market the prices being offered are now well below the peak and developers are offering terms that extend over many years. Alternatively, you may have sold your land to developers and land speculators who cannot settle and are left with little more than a deposit.
With prices falling the method of sale is critical to ensure you receive the maximum price for your land.
There are two basic options.
1 - Cash - Sell the land at today’s prices for an agreed sum (below the 2017 peak) and forego the profits when the land is developed.
2 - Terms - Enter into one of a variety of partnerships with a developer to co-develop your land.
A Resi Ventures Land Development Agreement (LDA) is a unique partnership option that allows you, the Landowner, to use your land as equity in the development whilst holding the title of your land as security.
The LDA has a number of unique aspects that separate it from other similar offers and is a proven formula that has delivered up to 50% higher profits for Landowners.
1 - It applies to land holdings as small as 10 hectares to 200 hectares +
2 - You do not need to provide any cash.
3 - Resi Ventures pays all development and infrastructure costs from planning approval through to sales
4 - You share in the profit of every lot sold
5 - Plus we pay all your holdings costs and an income while the land is being developed
6 - It is tax effective as you don’t pay any tax until you receive the proceeds.