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Questions and answers

Why do you as the seller not also arrange the collective leasing out of the land?

Recently, the court has confirmed that the party offering lands, may not play a (intermediary) role in the leasing out of the land that has been sold. That means that any party that acquires land is responsible for the management of his or her plot(s). It is allowed for any farmer and lease intermediary to approach owners of plots of land with a proposal to take care of the leasing for you, if you opt for that. This is very common in practice.

For whom is investing in land suitable?

First of all it is essential that prior to every investment, the opportunities and risks are carefully considered. A decision to invest should always be a well-considered one. This also applies to investing in strategically located land. Although it can happen that the zoning of the land changes not long after purchase, investors in land generally need to have a lot of patience. That means that investing in land is only suitable for investors who are not dependent on the money they invest in land to get by. We believe investing in land should not be considered by people who do not have sufficient financial room to commit part of their savings for an indefinite period.

Why should I invest in land now?

By 2020, there could be a shortage of over 300,000 homes. For now, land is still an affordable investment. When housing construction starts to catch up, you will be late to the party if you decide to buy land then. Statistics Netherlands (CBS) expects that the Dutch population will continue to grow until 2040. The interactive map of the Netherlands on our website clearly indicates those growth regions. Large housing corporations and project developers are facing challenging times. This offers you the opportunity to buy land now that was previously often owned by the aforementioned parties.

How much experience does TK Vastgoed have with buying and selling land?

TK Vastgoed has been a leader in advising on investing in strategically located land for years. TK Vastgoed exclusively employs people who have proven experience buying and selling property. It shows in our service, professional approach, and quick, accurate, and effective way of working. TK Vastgoed stands out because we have developed a large, national network that enables us to continue to lead in a market that is difficult to access for many parties.

Why does TK Vastgoed not sell directly to project developers?

TK Vastgoed does indeed sell to project developers, but project developers are often only interested in land they can start building on almost immediately. During the financial crisis, project developers often owned too much land and were not liquid enough. As a result, we were able to buy a lot of projects that would otherwise have been hard to get access to. Despite construction and the economy recovering strongly, many project developers still find it important to have money to start building now, not in a few years. For entrepreneurs and private individuals on the other hand, this is less of an issue.

Am I allowed to sell my land in the meantime before a rezoning has taken place?

Yes, you are completely free to sell your plot(s) to whomever and whenever you want. You can do this in different ways. For instance using a local estate agent or within your own network. Naturally, you can also turn to online trading sites or just post an ad.

How does early selling work?

At TK Vastgoed, we hear from interested investors every day. That means we are certainly able to help you if you decide to sell the land early. You can contact us. If you as the owner want to sell the land yourself or via a third party, you are free to do so. After all, you can always do with the land as you wish.

What is the financial/legal process when my land is to be sold?

In the event a party wishes to acquire your land after rezoning, you can transfer your land to that party. A notarial deed is also required for this transfer. After the transfer, the notary will transfer the sum of the sale to you, allowing you to rely on solid legal and financial advice. How the sale process goes exactly is described in your purchase agreement. If you have any questions concerning this, you can contact us.

Should I expect costs related to owning the land?

In addition to the possible land consolidation interest, you should expect water board taxes. Unlike land consolidation interest, everyone who owns land owes water board taxes. The water board taxes are manageable, as they are never more than a couple of dozen euros per year. If your land is leased out and the lessee uses it commercially, the lessee has to pay property tax (OZB).

Can I gift the land to a third party?

Of course, the land is yours. You may do with it as you see fit. It is however necessary that you record the transfer with a notary and the agreement of the person you are gifting the land to.

I want to buy land as an investment for my child who is a minor. Is that possible?

Yes, it is. It is happening more and more frequently. In such a case, the purchase agreement is made out in the name of your child who is still a minor. You do need to sign the agreement as his/her legal representative. Until your child reaches the age of 18, you will remain responsible.

Is the land market transparent?

Buying land is a transparent market. Every transaction can go through your own notary and is registered in the Cadastre. At the Cadastre, you can request deeds to see the purchasing price for the seller.

Is land zoned for agriculture not cheaper than the price TK Vastgoed offers?

While this statement is not wrong, the land we offer has not been selected for its agricultural value. It is strategically situated land, for which a so-called ‘agriculture-plus-price’ is paid. The finding and acquiring of strategic land is not an easy task. On average, only one in ten areas that are investigated are qualified as such. The price therefore includes a premium for the strategic location, the planners that have to be hired, the soil examination that has to take place (if applicable), the costs for cadastral splitting, overhead for marketing the land, etc. In addition, TK Vastgoed employs a (modest) profit mark-up for the selling/buying of the land.

I have read that municipal governments have lost millions in land. What is the story behind that?

Municipalities have bought a lot of land over the last few years intending to turn it into development land. As a result of the financial crisis and the related slow-down of the housing market, much of the land remained undeveloped. These municipalities often bought at prices between €10 and €50 and booked these agricultural lands at housing construction prices, despite no houses having been built yet. We call this a loss on paper. Now many municipalities are forced to take that loss.

Is there an index that shows the development of land prices?

When you as an investor buy land, it is likely zoned for agriculture. We do not evaluate the lands for their agricultural quality. There is no index that tracks the value of land. You could of course consult the Cadastre. There you will find specific information related to all so-called register properties (land is a register property).

How is the value determined?

If the zoning of the land has changed, the value of the land will be determined. You will be sure that the legal value of the land will become clear, as the value is determined by independent appraisers, who you can appoint together with TK Vastgoed. The price you paid to purchase the land, the transfer tax, and the notary and cadastre costs are deducted from the determined value increase.

The municipality has notified me that no rezoning is expected in the foreseeable future. Is that correct?

It is in a municipality’s interest that land can be developed based on the demand of private individuals, housing corporations and businesses. If the municipality does not own a certain area of land, it is not beneficial for it to inform third parties of planned rezoning well in advance. After all, in general the municipality will first acquire the land in order to then sell it to the project developer in question at a profit. That is why municipalities are usually not transparent when it comes to possible planned rezoning of land.

What if my land is not rezoned?

The value development of the land you have bought depends on several factors. A good purchase price is important because you will benefit sooner from an autonomous value increase (regardless of rezoning). As a result of scarcity and a strategic location, the price of land can develop in very promising ways.

How likely is that rezoning will actually happen?

That is of course the most important question of all. However, it is like any other investment; If we knew the answer to that, we would never have to work a day in our lives again. In part due to the fact that municipalities are generally not transparent and the people in policy-making positions change over time, any attempt to calculate the likelihood is meaningless. Based on years of experience, we are convinced that in no other investment, the ratio between return and risk is so favourable.

What happens when I do not want to sell in case of rezoning?

It is important that you realise when you buy the land, that it needs to be offered for sale after a rezoning. By signing the purchase agreement, you commit yourself to that. Unfortunately, it is not possible to reconsider this at a later stage. The reason is that this could harm other investors in the area. We try to protect our investors – which includes you.

Do I run the risk that pavement or water will be planned on my plot of land, as a result of which I will receive less than the owner of the plot next to mine?

That is a purely theoretical risk. When the land is rezoned, there generally is no complete plan for its design, infrastructure and buildings. At the time the land is bought from you, it will not be known yet what will be built on your plot. Your land is also part of a large parcel, which will likely be sold as a whole. That is one of the reasons for including the obligation to offer for sale in the purchase contract.

Is it conceivable that an interested party will only buy part of my land?

We always offer your land in its entirety. It is however possible that your land will be sold to different parties, although you will always sell the entire lot.

Am I allowed to develop the land myself after rezoning?

No, if the land is rezoned, you are obligated to sell the land to a party yet to be determined who will develop it. If we were to change the rules regarding this, a single investor could make it impossible for all investors in the area to benefit from the increase in value. We therefore do this to protect your interest.

Do you have questions?

Office

We are happy to help you at our office in Purmerend.

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Phone

We can be reached on Monday, Wednesday and Friday from 9 am to 6 pm. On Tuesdays and Thursdays from 12.00 to 21.00.

Customer service: 0299 676 525

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