Sales

Kingston Rd. & Harwood Ajax - 17.69 acres sold November 19 2001 for $7,658,450.00 ($432,925.00/acre) (click link for pdf)

Taunton Road West Whitby - 9.4 acres sold June 28 2001 for $4,568,700.00 ($486,032.00/acre) (click link for pdf)

 

Lakeridge comps grid

Lease

Above you can see the value of the land. Another option is to lease it on a long term land lease. Perhaps several terms of 50 years each.

Advantages to leasing for the developer are;

  • Lease rate is 100% deductible
  • Less up front deposit 
  • Developer's capital can be focused on the development, not buying land
  • Less $ to finance means less finance costs, less interest and less financing fees
  • Less capital tied up by developer means they are more liquid and can participate in other opportunities 
  • Lower overall investment for the developer 
  • The development ends up paying the lease rate, like a cost of doing business. 
  • The improvements on the land can be depreciated 100%
  • No land transfer tax for buyer
  • No capital gains tax for seller