Answer: Land banking can be defined in our context as the buying of agricultural land and waiting for it to be re zoned by the relevant council. Once a zoning is completed a Development Application DA is lodged with council which generally takes between 21 and 90 days. Once the DA has been approved we sell it to a developer or develop the land ourselves.
Answer: The duration of each investment varies. There is not a set time. Most investments range between 5 -10 years.
Answer: Land 9 is expected to be rezoned for residential use approx in 2027 – 2028.
Answer: The Bradfield aerotropolis city is 1km away.
Answer: You need to open an a separate account platform to trade shares in Land 9 with a minimum investment of $2,500.
Answer: After it is rezoned to residential use, it will take approximately one year to apply for DA and then on sell the land to a developer and then the project will end. DA’s themselves are generally completed within 90 days.
Answer: The main risk in Land 9 is the time risk. Including the time for the council rezoning and the time for the DA application.
Answer: You can exit anytime by selling your share on the platform but it is not recommended. The maximum profit will come from the final sale of the land.
Answer: They are zoned rural RU4 now.
Answer: It is very unlikely. The government in most instances will choose the land located partly or mostly with a flood zone impact upon it. None of our land is in the flood zone.
Answer: The southwest region of Sydney is an area of Sydney we know very well. The area is set to be a major if not the fastest growth area of Sydney with the new airport set to open in late 2026. It is also one of the last areas of Sydney with unzoned land and hence there is enormous potential. The government has officially legislated the planning of the southwest and unlike many other areas the risks in our opinion for development not going ahead are low. The government is keen for development to occur within the southwest with policies and specific planning already legislated so most of the uncertainty removed. It is only a matter of time.
Answer: It is estimated that it will take approx 5 years to complete the whole project, including land rezoning, DA application and house building.
Answer: Land 10 has no house on it of note. It is a large area 20,000 sqm (5 acres) of agricultural land which was expensive to buy but we have 18 shareholders who have invested in it and many hands make light work in such an investment. Once rezoning occurs we move to step 2 which involves submitting a DA for the construction of an anticipated 50 houses. The third step is to raise construction loans for the actual construction of the houses by builders. Of the 50 houses which will be constructed we will sell 30 to cover the building costs and then we can divide up the value of the remaining 20 houses amongst our unitholders,
Answer: It is predominantly the time risk. The government's planning of the area and DA application are estimated time frames only which cannot be accurately known or determined.
Answer: According to the information memorandum unit holders get 18 units once the houses are built, and the rest will be sold.
Answer: The money to build the homes will be financed by a construction loan. After applying for the DA we will apply for a construction loan with the project as collateral.
Answer: After we apply for the DA at Land 10 it is estimated that the project value will be 80 million Australian Dollars. The construction loan is expected to be 40 million Australian dollars. The LVR is very low, and the project bank with such low LVR will be very happy to give us a loan.
Answer: In our budget the current construction cost is 40 million Australian dollars. After applying for the DA the project value will be 80 million Australian dollars. We can still build if the construction cost increases. If we can't build houses at the end of the day we will sell the whole parcel of land with the zoning and approvals in place as the land will have appreciated naturally and there will be a high return.
Answer: First submit application to join Unit Trust, transfer 10% deposit, and then pay the remaining 90% within 3 months. One share: $394,800.
Answer; Pay off the investment within 3 months after the 10% deposit has been made. Basically you can't get a loan.
Answer: Yes, the shareholders have control over the project and can change the charter if 75% of the shareholders vote to do so
Answer: No, we bought the land in full, no loans. The worst case scenario is that the project is not completed and we sell the land which has gone up considerably since its purchase without even any rezoning taking place. This bides very well for our future without any material change in the status of the land to date.
Answer: After applying for the DA, all the houses on the entire lands area will be designed as a whole. At that time, the plan will be available.
Answer: There are detailed plans for Airport City 300 meters away.
Answer: Early exit requires you to sell your share, and you can exit if someone buys it.
Answer: For the uninitiated there are a number of risks in land investment. Risks can include duration of investment without planning, the specific plot being unsuitable, expectation that the land will be residential and it becomes industrial, etc etc. Also of course pricing errors where too much is paid. There are many risks and we wont list them all. KSI mitigates most of these risks by utilising the knowledge we have accumulated over the years and implementing that knowledge when deciding the potential of each individual land holding. In our view the largest risk is the holding time of the land in question and whilst we are confident of minimising risk there is no fool proof means of knowing the timing of rezoning of land which we purchase. In our view its not a question of making a profit its simply the duration of the holding and the amount of the profit margin on completion of the project.
Customer Service Manager:Michael Guo
Tel:0430680555
Email:[email protected]
Address:Suite 404, 53 Walker Street, North Sydney, NSW, 2060
General advice warning and Disclaimers