wheeler_dealer

A relative of mine has been left a lot of land which is probably going to be built on in the next few years. It was valued 3.5 years ago at X million pounds.

What I would like to know is how much has building land risen in the last 3 yrs. Could anybody give me a rough percentage please ?

Thanx

Wheeler dealer

OllyK

Depends if it has planning permission already or not. Just a hunk of green field land is not going to be worth much if you can't develop it. If you have got planning permission then the number of dwellings permitted will make a difference.

wheeler_dealer

Planning permission has been granted for minimuim of 700 houses !

Its right on the edge of a large town !

LG John

No idea but if there is permission for 700 houses on it he will be sitting on a gold mine

XRS

According to a developer friend of mine, you can work on the rule of thumb of one third land, one third building costs and one third profit, so assuming the average value of the 700 houses sold is (say) £120,000 each he should be looking at around £28million.

Good luck

OllyK

OK this is SWAG but...
If you say £10K per house that £7 million. Looking arround recently a plot of land for 1 house has been around the £50K mark. But that has been for a single dwelling and to allow for quite a bit of land around the property. I guess in this case it would be modern houses crammed in like sardines so the developer can maximise thier profits.

wheeler_dealer

Minimuim of 700 houses !

GreenMachine

£30M

I'll do the consultancy for 5%