Let us tell you about Ian

Ian (name changed at client’s request) is a successful farmer from North Canterbury and was farming around 600 acres* of his own land along with hundreds of acres of leased land, growing irrigated specialist crops and fattening lambs.

*as like a lot of our clients, we can think in acres too, just like Ian did.

 

The Situation

#1

An opportunity came up for him to purchase an adjacent 200 acres of mostly irrigated land, in three titles, with a house on it. The titles fitted no physical features.

Proposed Solution

#2

Being fully irrigated, the property had a high $value/ha, and with a house that Ian didn’t need, he wanted to look at options to divest himself of unnecessary capital with the dwelling.

We looked at his options and decided we should do a boundary adjustment of one of the smaller titles to put the house on it, taking no irrigated land with it, and also move the other small title to a location outside the irrigated area.

Given the subdivision rules were likely to change in this area, we also suggested that for longer-term security and financial gain, to also get subdivision consent for the balance of the property into lifestyle blocks, as in time these will become rare should Council change the zoning.

The Result

#3

He agreed to these suggestions, and he ended up with the house sold on a smaller title for a third of the purchase price of the whole property, reducing his debt significantly, and a consent that will give him nearly eight years to decide whether he wants to complete the 18 lot lifestyle subdivision, which would provide a return of three times what he paid, on today’s prices, should he decide to sell.

And as predicted, Council did change the rules and it is no longer possible to obtain consent for lifestyle blocks in this area.

Finanical Advantages

#4

Good financial advice and structuring of entities from his financial support team also meant no tax was paid with the first transactions, and he has ended up with a vastly increased asset value with very little expenditure so far.

See what we can do for you – contact Survus+Rural now to discuss your circumstances.