If You Think You Understand , Then Read This
3 weeks ago aebi Comments Off on If You Think You Understand , Then Read This
What You Need to Know about a Ground Lease
Getting a piece of land for development is not an easy thing, lots of factors usually come into play. One of the biggest issues is sometimes, you may not have the kind of money that is needed to purchase the land. Rather than buying the land, you want to consider leasing the land because that is always better. The most important thing is to make sure that you have consider these because it is able to help you to get good results. With the ground lease, you are able to benefit because if you’re interested in selling it in the future, you can do that but at the moment, you can get some money from the ground lease.
You may want to take the time to understand everything about the ground lease, it is going to have an important impact. The moment you decide to get the ground lease, the development that you’ll be doing on the land will be for the owner. Handling the land back over to the owner will be possible after you’re done with the project. Choosing the best duration for the ground lease will be important. The ground lease can be between 20 and also 44 years, it is important to know the differences. Different types of the ground lease will be there and it will be a good idea to understand the differences.
One thing that would be very important is to make sure that you have been able to understand clearly more about the ground lease. There is the unsubordinated ground lease and the subordinated ground lease. It would be critical for you to understand the differences between the two so that you can choose the one that will be great for you. There are a number of advantages you’ll be able to get in relation to that. For the purposes of development, you are able to secure the land immediately never you decide to get the ground lease. You will actually notice that most of the time, the down payment on the land will be reasonable for you. There is also the aspect of getting some very specific tax advantages.
For the land owners, this is going to be an opportunity to get steady income. Apart from that, your also still going to have some level of control whenever you decide to give them a ground lease. Over this project, you are going to have much more control. You’ll also have to be very careful about how you are going to stick to the guidelines that will be given.