Check 13.1: Establish an awareness of the developer'e / landowner's objective(s) in owning land.
A person (owner/developer) holds an estate in land with a particular objective in mind; perhaps even more than one objective. The prime objectives are categorised below. (Here a "person" is an individual or organisation with legal personality, such as a company, a trust, or a partnership.)
The importance of the objective of a person in holding property lies in the statutory regime which affects such ownership. For instance, dealers in land, eg housebuilders, are treated differently for taxation purposes than say, a housing association holding dwellings to let. (See Checklist 15 Captial Taxation and Income Taxation.)
Objectives of Land Ownership:
Residential - a person acquires a dwelling or develops land as a dwelling for personal use.
Business - a person acquires or creates business premises from which to run a business (retail, manufacturing, service provider etc,) for commercial profit.
Investment - the owner buys property or develops land with the intention of letting it for rent or rent and premium.
Dealing - a person buys a property or develops land with the intention of reselling for commercial profit.
Recreational - person buys or creates a property for personal recreational use.
Objective - a person buys or develops property for altruistic reasons, a charity's orphanage.
Functional - a person holds or creates the property so as to provide a function to support or protect other land, eg holdings of government departments such as the Defence Estate or a local authority estate. On privatisation, towards the end of the 20th Century many functional holdings transferred into private sector to come within the business objective.
Showing posts with label Objectives of land ownership. Show all posts
Showing posts with label Objectives of land ownership. Show all posts
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