View Single Post
Old 21-11-06   #4
richardnelson
Unregistered User
 
Posts: n/a
Default

I have been working with similar companies from UK and here is my response:

While you may not find figures on Return on Investment, what you will find is the value of the plot after it is allocated for development. This is based on today’s actual values and is not a projection. Likely the price 5 years in the future will be more than today’s price. In terms of ROI, it works out to a 400% return on your investment, based on current prices. With inflation and natural appreciation in the next 5 years, your actual return could be significantly higher.

Picture in your mind, a scale with 0 on one end and 7 on the other end. 13200 GBP is the price today and 53000 GBP as the price in year 7. The price you will get will depend on what point in between 1 and 7 you want to sell. For example, if want to sell in year 4, the person buying from you only has potentially 2 or 3 years to wait, maybe even less. Your plot will then sell at a premium because it is 4 years old into the rezoning scale.
  Reply With Quote