Investing in land as a group opens up a realm of opportunities that one may find challenging to access as an individual. In this article, we explore three compelling advantages that highlight why a group investment in land might be a strategic choice.
- Resource Pooling
One of the most significant advantages of investing in land as a group is the power of resource pooling. By joining forces with other individuals, you gain the ability to leverage collective financial strength. This means you can invest in larger plots of land, maximising your potential returns in ways that may not be attainable on an individual level. It is better to have a share of land than none at all.
- Management of Ownership Through Legal Entity
The registration of a Legal Entity, such as an LTD or LLC to manage ownership in a group purchase is highly recommended. One key advantage is the ability to manage the ownership of the property without going through the process of adding and removing names from the individual title deeds. The Legal entity can hold the title deed and ownership can be managed through changes in shareholding of the entity.
- Ability to Pull on Other Partner’s Non-Financial Resources
Beyond financial resources, corporate or group investment in land gives access to the knowledge and professional skills of all involved. Collaborating with other individuals brings together diverse expertise, and experiences that will collectively help the group make informed decisions and seize opportunities confidently, especially when it comes to development.
- It Gives The Ability To Exploit Tax Incentives
Another great advantage of investing in land as a group with a registered entity is the ability to exploit tax incentives that may not be available for individuals. Corporates can expense the legal costs, stamp duty, transportation costs and all manner of things that cannot be done as individuals.
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