How To Use Land Profitably

[Loaded]

An aunt of the missus has a plot of land (15 Rai) on a gentle slope facing Doi Suthep Chiang Mai. It's 400ms from the Four Seasons. She doesn't want to lose ownership, but she does want to earn from the land. She doesn't have capital to develop herself. There's a luxury villa development behind her land (tried to contact the owner already).

Any ideas on how she can utilize the land considering she has no capital?

[Maizefarmer]

An aunt of the missus has a plot of land (15 Rai) on a gentle slope facing Doi Suthep Chiang Mai. It's 400ms from the Four Seasons. She doesn't want to lose ownership, but she does want to earn from the land. She doesn't have capital to develop herself. There's a luxury villa development behind her land (tried to contact the owner already).

Any ideas on how she can utilize the land considering she has no capital?

Developement - as in houses or apartments: the land been the security on which funds to build can be raised.

Alternatively a long lease with permission to develope, from from she can draw a regular income from the developer. In this case, although still the legal ownber she will loose control of the land.

Anyone else with ideas.

Tim

[lannarebirth]

An aunt of the missus has a plot of land (15 Rai) on a gentle slope facing Doi Suthep Chiang Mai. It's 400ms from the Four Seasons. She doesn't want to lose ownership, but she does want to earn from the land. She doesn't have capital to develop herself. There's a luxury villa development behind her land (tried to contact the owner already).

Any ideas on how she can utilize the land considering she has no capital?

What is the title designatition of your aunt's land? Can she find out the title designation of the adjoining land? Is it controlled by the land office or the forest department? Has she planted fruit trees (if in forest department) to maintain her claim to the land?

[Loaded]

An aunt of the missus has a plot of land (15 Rai) on a gentle slope facing Doi Suthep Chiang Mai. It's 400ms from the Four Seasons. She doesn't want to lose ownership, but she does want to earn from the land. She doesn't have capital to develop herself. There's a luxury villa development behind her land (tried to contact the owner already).

Any ideas on how she can utilize the land considering she has no capital?

What is the title designatition of your aunt's land? Can she find out the title designation of the adjoining land? Is it controlled by the land office or the forest department? Has she planted fruit trees (if in forest department) to maintain her claim to the land?

The land used to be a resort, but it's just overgrown now. I don't know anything else but will ask.

[GuestHouse]

I think the lease option is probably best but I would look to controlling the usage through the lease "Development" is too wide a term and open for abuse.

You mention that you believe the land used to be a resort, I think this offers a possible option.

When we were looking for our land I would have bitten your hand off for a reasonable lease on a peace of land in the area and of the size you are discussing. Other's will surely be looking for land of that size and in that area.

Advertise the land for use as a resort or low impact hotel and then stipulate the usage that you will allow within the terms of lease. You may want to approve outlinse plans of any developement that the tenant wishes to make.

Set a reasonable rent and I am sure you will find a tenant.

Oh and get a resurvey done before you start, so you can say for definate what it is you are offering under the lease.

[EDIT]

Some more thoughts.

She should also make a will to ensure that the control of the asset remains within the family and goes to who she wants it to go to. A piece of land that is earning an income and has a real sale value after development is going to get family ambitions going.

She might also consider appointing an agent to do her negotiations, it will cost money but it will also bring in expertese and importantly 'De-personalize' the business.

If she does have an agent then there needs to be a contract that covers the terms of duties and fees but that absolutely must include 'Procedure of Authorization' to ensure the agent doesn't start making decisions the land owner is not aware of.

My suggestion would be that all authorities are signed by the land owner and witnessed by one of perhaps half a dozen named persons (non of whom are working for or suggested by the agents).

She needs to be very careful not to place power of atourney or any power over her assets in the un controlled hands of other people.

Edited November 8, 2006 by GuestHouse

[Thaddeus]

The land used to be a resort, but it's just overgrown now.

Why?

I would find out the answer to that question first.

//edit/clarity

Edited November 8, 2006 by Thaddeus

[GuestHouse]

^

Surely that is a question any future tenant who wishes to open a Resort on the land should ask.

Releasing the land to new tenants, who failed to get their sums right, every few years could in itself prove profitable.

[Thaddeus]

Indeed..... but .. not getting the sums right isn't necessarily the only reason .... need to do some digging, or needed to do some digging.