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LETS GET DOWN TO BUSINESS.

Question :
Hi folks;a question about prime real estate land-LEASE. I’ve been offered prime commercial sections of almost 3,000 sq meters, to lease. Valued around a million+. No one is answering or giving me a hint of what to offer, weekly, monthly or even for how long it be suitable, too. The investors appreciate what I’m offering and with that in mind I am confident for my start up project to take hold, once I can promote that the land is ours. BUT How much should I offer? I’ve offered they take equity too but no answer on that as yet. Cheers, Marcel@MARCELinNZ > twitter.

Question submitted 05/05/20 @ 09:27am
Industry: Property
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  • HI Marcel – just having a lease does not mean actual ownership. It just gives you rights to use it for purposes that are permitted by the law. Also, many people are concerned about taking on more leases which add up to commitment to fund, when there are some challenges to earn income from that land. I would not be offering anything until I have absolute clarity around how I can make a return from the use of the land, and I know in most commercial deals right now, there are incentives and rent free periods – be careful before you commit. Good luck.

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