A
Are you certain that UK CGT would not apply? Note that I'm not a tax expert, but I understand that these are complex matters. Do you have a written opinion from a tax expert that you can sue confirming that only Irish CGT will apply?- What is the tax impact of this investment?
#Irish CGT => 20% of speculation profit
Technically correct, but fairly useless answer. It sounds like you haven't given significant thought or research to the future of the Sterling/Euro relationship. This relationship will have a significant impact on your investment return.- What is the currency risk involved?
# same as investing anywhere outside the euro zone
I don't understand - £160k for what - an acre? a hectare? a square metre? And please advise on the source of your information on prices?- What is the real market price of undeveloped land in those locations?
# I believe this is about £160k (maybe less when you factor in affordable housing requirements and land set aside for services eg roads, roundabouts, transformer stations etc)
I don't understand how you are confident that 'it seems to be well covered' but you can't specifically answer the question as to what happens. Believe nothing that you were told by these guys (who obviously have a strong vested interest in selling to you).- What are the dependancies on your neighbouring plot-holders? What happens if your neighbour doesn't join in the plan to apply for permission, or to eventually sell the land?
# This is documented in the Plot Holder's Association's Articles of Association. I will get a solicitor to look into those. A problem I have at this point is that oddly it will cost £300 to get these procedures (it is refundable if I go ahead and stump up the balance). From what I was told about this it seems to be well covered.
I've never heard of 'adjacent to existing development' as being the primary reason for a rezoning. It may well be one small factor, but it would not be the main reason. It really does sound like you are swallowing the sales person's line, hook, sinker and all.- Will a developer be interested in the complexity of buying off a large group of plotholders, when he can buy the field next door from the single owner.
# Yes, because the field next door is not adjacent to exisitng development and is therefore highly unlikely to get rezoned.
Do you believe the implication on their website that the closure of RAF Lyneham is likely to improve land values in those areas?- Would you trust an agent who attempts to spin the forthcoming closure of a major employer (RAF Lyneham) as a positive change for one of their other sites?
# Don't understand what you're getting at here.
But that is not the graph that they are showing. The graph doesn't show the price increase in rezoned land. It shows the price increase in residental land. They might as well show the rainfall chart for Ulan Bator for all the relevance it has to the purchase.- Why do they show graphs of the increase in residential land values, when they aren't actually selling residential land?
# Because they are hoping to get it rezoned as residential therefore they are entitled to show this graph.
And it wouldn't by chance have been the salesman who told you this, would it? Yes - you really, really should find out what this means.NOelC, apparently Lyneham is doing "very well". I am short on details but I was led to believe that it has passed Local Council Deposit stage of the planning process ... must find out what that means.
Who or what are the LIA? GoogleUnited Holding is regulated by the LIA (Land Investment Authority).
United Holding is regulated by the LIA
Just to be very clear, I have no expert knowledge of the taxation issues, but I do recommend that you get expert independent advice on this.you may be correct on the taxation front. I now thnk that because there is a Double Taxation Agreement between Ireland and the UK that I would be liable for the larger tax liability on making a a speculative profit and I beleieve that this is 20% in Ireland and 40% in UK, so I would pay 40%. That certainly reduces my interest.
There is a huge difference between buying something abroad (based on a known current currency rate) and making an investment in a foreign currency, where the success of the investment is dependent on the future rate. I recommend you research this, and consider the impact of (for example) the UK devalueing to join the Euro, or a new Tory government on your investment.The currency issue is nothing peculiar to this scheme. Nobody knows how currency rates will change. This is not a useless answer. Have you ever bought anything outside your local currency?
The figure of £160K is per 400m2 plot.
The graph shows price increase in residential land. I would be buying greenfield land with a 'hope' to having it become residential zoned. So, the graph is relevant.
I would place little store in whether they are 'independent' or not. The real issue is whether LIA have any regulatory role (they don't) and whether they will help you if it all goes pear-shaped (probably not). Otherwise, they aren't adding any value for you or your investment.I send off a list of questions to the Land Investment Association asking amongst other things are they independent (financially and personally) of ties to United Land Holdings.
Generally, you do. You know what FX commission your credit card company charges. You know what the current rate is. So you know within 1%-2% of how it is going to come though on your cc bill.Rainyday, if you buy something in a different currency on your visa and you don't know how much you will be charged.
You are misunderstanding me. I never said that you shouldn't proceed with this investment because it is in Sterling. Indeed, I have some USD investments myself. What I said was that you should research & understand the impacts of currency movement on your investment.Would you apply the same logic in saying that you should buy shares in US dollars or in Sterling?
OK, so just to be absolutely clear, you are telling me that the prices that United Land are charging is in the region of £16k for a 400m2 (approx 1/10 of an acre) plot - Correct?The figure of £160K is the a conservative current market value of a 400m2 plot (factoring in affordable housing and roads), with residential status, in the area. The outlay to a similar site with greenfield status is £16K.
The graph isn't showing the price for land. It is showing the investment return. Unfortunately, it is showing the investment return for another type of investment. It does not relate to your investment (purchasing of unzoned land). It is just another example of how the sellers are trying to blind you with irrelevant data.What is the difference between a graph showing the price for land rezoned too residential status versus one showing land with residential zoning? To my mind there is little or no difference.
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