Our philosophy ...
‘If one does not know to which port one is sailing, no wind is favourable.
Lucius Annaeus Seneca, letter LXXI to Lucilius
We will point you towards a safe haven for your land holdings.
… for landowners
Avoiding taxes and negative rates of interest
Do you have residential or commercial building land, but want to avoid paying the exorbitant Swiss property capital gains tax when you sell it? Are you also interested in steering clear of either paying negative interest rates or having to think about reinvesting the sales proceeds? The solution is to establish a leasehold agreement.
A leasehold means that you immediately begin to receive considerable returns on your building land and these payments continue for a long period of time, without you having to concern yourself with anything else. It is the easiest and most convenient way to secure prompt and long-lasting income from your land. The revenues that can be obtained in this way are highly attractive and, more importantly, they are predictable income – a rarity in today’s world.
If this appeals to you, then the ‘leasehold with immediate yields’ model is right for you. You can find more information on this here.
Achieving top sales prices
It is easy to sell land at good locations. But it is by no means easy to obtain an optimal price. You can always find buyers at a low price, but how do you find buyers at top prices? Financially strong investors who are willing to pay premium prices are looking for something in return. For instance, they are interested in land that is ready for construction, preferably with a clearly defined vision of what can be built there, and ideally with a building permit that optimises utilisation, or an outstanding design plan or site development scheme. This is often a protracted process within the current legal context for construction projects.
However, these developmental efforts result in significantly higher sales prices, which can amount to several million Swiss francs or euros, depending on the location and size of the property. And since building land cannot be reproduced at will, and you may only own this one plot of land, it is perfectly legitimate to seek the maximum profit from its sale – even if this means that the proceeds will only be available in two years’ time.
This patience is also required of investors: good plots of land – and thus opportunities to build at a particular location – exist only once. To this end, we have launched the ‘sales agreement with development guarantee’ model. You can read more about this here.
…for investors
As an investor, you would prefer to buy land outright in order to make a greater investment and maximise your profits. However, it is becoming more and more difficult to buy building land directly, with a healthy balance between risks and returns.
Landowners know that land is a finite resource, so they are less and less willing to part with their building land, which cannot be replicated. Furthermore, the sale is accompanied by additional difficult challenges such as profit taxes, negative interest rates when the money is deposited in the bank, the costs and risks of an alternative investment and much more.
In such cases, we strive to achieve a co-operative symbiosis in which landowners and investors each benefit equally. If you are interested in this model, please contact us.
The leasehold model also gives small investors who purchase condominiums an opportunity, depending on the amount invested, to acquire one or more attractive units without a bank loan. The ground rent is a transitory item that does not generate income for you, but does not affect your bottom line, either.