What is a Land Development Agreement?

Posted by Anthony Braunthal on Dec 20, 2018 3:42:00 PM

A Land Development Agreement, or what we refer to as an LDA, is a type of joint venture agreement designed to make you a LOT more money than you would earn by just selling your land.

But be WARNED, not all Land Development Agreements are created EQUAL.

Before you enter into a Land Development Agreement there are SOME questions that need to be asked.

Does the LDA suit our needs?

You need to work out what really matters to you in terms of your returns and level of protection.

Think about what your end goal is in terms of what you need upfront, ongoing and at the end of the development.

What we’ve discovered is the most important thing for us is to listen to your needs.

Having done that we tailor the LDA to suit you. 

Will we get what we’ve been offered?

A lot of people out there act like developers but don’t have the experience or BACKING to complete the project. 

So whilst there offering sounds great they may not be able to deliver on their promises.

What we have seen is Landowners getting lured into making deals that will never get delivered. 

With Resi Ventures our business is built on doing LDA’s time and time again and that's the reason we do it really well. 

We tailor the LDA to suit by listening to your needs. 

For example, advances are provided upfront along with annual payments until such time as the proceeds of the development start to flow through.

What is My Risk?

You retain ownership of your land until the lots are settled and title passes to the purchaser of each lot.

This gives you complete control over your property so your position is always 100% secured.

Resi Ventures has a proven track record with a long history of delivering successful projects.

What’s more our strength lies in fast tracking projects so the the Landowners get their return a whole lot sooner.

Is my Downside Covered?

Are you protected so you know what you are going to make? With Resi Ventures we set a Floor Price which effectively derisks your position completely?  Without a minimum price you have no guaranteed return. Markets rise and fall and your position needs to be protected. 

What are my tax liabilities?

LDAs are designed to protect the Landowner from property development risks using a structure in which the Landowner receives the proceeds in a tax effective manner. It is critical to the process to act in a passive manner so that your returns will be treated on capital account.

What is my land really worth?

Perhaps the MOST important question! 

Resi Ventures provides a FREE, independent planning evaluation of your land including lot yield AND expected sales revenue. 

This ensure you have a clear understanding of your total return based on what the future value is expected to be. 

We have provided a simple overview of the LDA processes and potential pitfalls on our website.

Go to resiventures.com.au to.

If you would like to discuss the Resi Venture process AND be provided with a no obligation assessment of your land value .

Call: 1300 031 260

Email: land@resiventures.com.au

Topics: #rezoneyourland, #jointventure, #LDA, #rockbank, construction, #maximiseprofits, land development agreement

not all Land Development Agreements are created EQUAL.

Before you enter into a Land Development Agreement there are SOME questions that need to be asked.

Remember:

  • Does the LDA suit our needs?
  • Will we get what we’ve been offered?
  • What is My Risk?
  • Is my Downside Covered?
  • What is my land really worth?
  • What are my tax liabilities?

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