site investment

Im thinking of buying a site for investment.If I buy a site subject to planning permission for 50,000 euro.(one acre in Roscommon)If I get outline planning can I sell it for more.If so by how much? Do I need to pay capital gains tax on any profit I make? Would appreciate any views on this.

gailey said:

Im thinking of buying a site for investment.If I buy a site subject to planning permission for 50,000 euro.(one acre in Roscommon)If I get outline planning can I sell it for more.If so by how much? Do I need to pay capital gains tax on any profit I make? Would appreciate any views on this.

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A friend of mine has been building one-off houses for a number years now and he was telling me that there is not alot of money to be made in one-off building on a purchased site. He believes there is more money to be made in renovation projects. for these type of projects though I think you would need experience to be able to determine the scale(cost) of renovation required.

Have you read the local area plan for the area in which you are buying the site? How likely is it that you will get pp? 50K for a site with no planning permission seems like a lot to me ... considering agri land in Roscommon is about 7K an acre. I would suggest you find out the price of sites with pp on them, and what the demand is like ... unless your site is in a particularly convenient location or is especially scenic I would give it a miss.

And the planning could be granted with an occupancy clause. Leaving you obligated to proceed with the purchase of the site but unable to sell it on...

Hi,

50K for a site in Roscommon without planning is indeed excessive.

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I think the only way you'll make money on this is to buy a larger site suitable for a cluster of houses (4 to 5). I'd always recommend buying any site subject to planning so you won't be left with a worthless piece of land. Be very careful with the legal side also to prevent the seller pulling out of the sale once planning is granted...

Well many sellers don't want to bother applying for the permission themselves and price the site slightly below its value with PP. Fair enough I suppose, and you can get a good idea from talking to the local planners as to how a potential application would be viewed.

you could maximise site value by selling it subject to the potential purchaser obtaining planning