build to sell or just sell the land?

AfterMath

We (me and the wife, kids etc!) have a dream of owning a second home/holiday home in France. We have a plot of land (it is building land) kindly given to us by my father-in-law. And to fund the purchase of a second home I was thinking of borrowing from the bank to build a domestic property on the land. and then sell it, thereby, making a better profit than just selling the land. We have had an offer for the land, so I know I can easily take that option. I wondered if anyone has been in this or similar situation or can advise on the tax implications. The house prices roundabouts are extremely favourable, well certainly not below the national average.

Richard_F

Hi,

I was an estate agent for 17 years until 18 months ago, so I was conversant with architects, builders, planning permissions, selling and building of houses. However, when I had a piece of land with development potential, I only went as far as getting the plans drawn, planning permission granted, and clearing the site, then I sold it. I could have made more money by building the development, but knew that I definitely did not want to be dealing with more risk, expense, and cashflow issues. Nor did I want to deal with builders with all their problems, and buyers of the end product, with all of their problems.

The development took 18 months to build, by a developer who had been doing this kind of thing for years and, during this time, I did things with the money which probably made me as much as I had foregone by not building, and which enabled me to be in a position to retire around 2 years before I could have, had I built the development.

What I am saying is that the money isnt the "be all and end all". If you can sell to a developer, and achieve your dream a year earlier, with no risk or hassle, even if it isnt quite as good a property as you might have had, you should consider it.

Regds

Richard

sneekymum

I think its the tax implications bit that puts folk off from replying to this one - for all we know the French may have no VAT on land but lots on property - or the opposite - or some complicated stamp-duty-type thing.

I think what Richard says about the time/hassle thing is very true. In England I would (do) just go for outline planning approval and then sell - its cheaper in planning fees for multiple units too.

Cagey

I think Richard is spot on. The hassle of overseeing the bulding of a house in GB would be bad enough but abroad would be a nightmare.