Buying land for development is certainly an exciting time, but that doesn’t mean you can afford to get carried away with all the excitement. As ever with every stage of the building and development process, it’s getting the fine details in order that will make all the difference.
To give yourself an idea of what you need to be thinking about, let’s take a look at some of the fundamental questions you’re going to have to answer along the way. Don’t worry if you don’t have the answers on the tip of your tongue — that’s what an expert advisor is for.
How are you going to fund it?
Acquiring land can be an expensive business, which means there will be a whole host of funding options you need to consider to secure the freehold. The key thing here is not to worry about which one you’re going to choose right now. Instead, what you want to do is connect with an expert that will talk you through the options that fit best with your individual circumstances. It’s all too easy to spend days googling and getting nowhere, so why not jump straight to connecting with someone in the know when you want to speed things up?
What do you want to use it for?
When you’re developing land there are a whole host of restrictions and guidelines you need to be aware of. There are so many cases of projects that grind to a halt halfway through because something was overlooked in the acquisition stage. To ensure you don’t become another one of them, take the time to understand what you can and can’t use the land for before you take it over and break ground. It will save you time, money and effort in the long run.
Do you have the right change your usage plans?
It may be the case that you want to hold the land for several years before breaking ground. Why you may want to choose to do this is a topic for another day, but what really matters is you understand how much you can change your initial usage plans. This will depend heavily on the location and size of the land you’ve acquired, so make sure you seek expert advice that will point you in the right direction. You really can’t put a price on having flexibility, so look for a solution that covers as many bases as possible.
What are the tax liabilities you need to avoid?
If you’re able to fund the purchase of a piece of land then it’s clear that you’re going to have to show some money in the process. The problem with this is that you can easily stray into other tax brackets or become liable for various other surcharges if you’re not careful.
The tax system is so complex that it can feel near impossible to try and figure out what you will owe and the charges you will incur with various different purchases. If in doubt, seek the advice of an expert who will be able to show you the big picture quickly and easily.
How do you secure your land?
When you own a piece of land it doesn’t just become a valuable asset — it can also be viewed as a substantial liability. The key thing here is to figure out how you’re going to protect and secure it against anything life may throw at you. By having the knowledge that your land is safe and secure no matter how long you want to hold it for, or what you decide to use it for, you can sleep easy knowing that everything will still be in order should something unforeseen happen.
If you’re unsure about how to answer any of the questions above, all you have to do is ask. Give us a call on 0808 123 3030. It really is that simple with the right expert by your side.
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