Land Cooperation: Here’s a Strategy to Offer Attractive Profits to Land Owners In land cooperation, the land owner gets 2 benefits. First, he gets the price of the land and secondly he gets a share of the profits from the project profits. Therefore, if the land is to be worked on into a project with a land cooperation pattern, the first step that must be taken is to determine the price of the land.
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Apart from calculating project costs, land price fixing is also useful for determining the amount of land owner rights.
Let’s take a look at an example of a calculation for 1 hectare (10,000 m2) of land to be cooperated. For this land, the agreed land price is 300,000 rupiah per square meter. Therefore, the land owner is entitled to a land price of 3 billion rupiah.
Regarding when the payment of this land price can be agreed upon, whether it will be paid in stages according to sales or in stages based on certain time intervals. Where each of these payment methods has its own advantages for developers and land owners.
For a property developer, the advantage of paying for the land price according to the units sold is that no payment is due because the payment obligation arises if there is a sale. To pay for the land, the money comes from consumer purchases.
However for landowners this kind of payment can be uncertain because they receive money if there is a sale, if there is no sale they do not receive the money.
Meanwhile, the payment in a gradual manner according to a certain time interval provides an advantage for the land owner, that is, he gets certainty of receiving his money.
For example, the payment of land prices is carried out in stages every 3 months, so this must be fulfilled by the developer.
Another case for developers, paying land prices gradually provides positive and negative conditions. The positive side is that the developer will do everything he can to fulfill the land payment obligations that are due.
Meanwhile, the negative condition is that the developer will receive consequences in the form of a fine if the payment is late.
Apart from getting the price of the land, the land owner also gets a share of the project profits. The amount of the profit share of this project depends on the agreement.
There is no official literature that regulates this. However, sharing of project benefits is expected with due regard to the principle of justice.
This means that the party who bears the greater risk, he is the one who gets the bigger share as well.
In this case, of course, the developer who bears a bigger risk is because he has already spent money when the project starts, even during the licensing and planning process.
While the land owner is safer because his participation in the project is in the form of land that is physically impossible to lose and legally guaranteed because the certificate is stored in the notary office (that’s the agreement regarding the storage of the certificate, not in the land owner, nor in the developer), thus the certificate is safe from the possibility. abuse.
Let us look again at the example above, if the land with an area of 1 ha and the price per meter is 300,000, – a property project will be built with a land cooperation pattern, then the share of profits for a reasonable land owner is 20% to 30%.
The profit sharing percentage of this project will change in line with land prices. If the price of land is cheaper, then the share of land owners is also smaller.
For example, for land suitable for housing construction for low-income communities (MBR) or better known as subsidized housing, the price of land is certainly cheaper.
Thus the share of land owners is also smaller, namely a maximum of 20%.
Likewise for land that is more expensive, the share of land owners is also greater. For example, if the land price is greater than 500,000, – per square meter, the share of the land owner is also greater, namely at least 25% but not greater than 40%.
Now, back to the example of land discussed above, when you offer profit sharing by percentage, of course the land owner wonders, what is the approximate nominal amount? If you are someone who understands the calculation of a property project, you can quickly answer, the profit being the owner of the land is around 750,000,000, -.
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Where did this figure come from? Here’s how it counts, a property project is said to be feasible if it can generate a net profit of at least equal to the price of the land (of course, the bigger the better the better).
From the example above, the land price is 3 billion, so the share of the profit that belongs to the land owner is 20% to 30% of 3 billion.
Let’s take the median share of the land owner, which is 25%, then the land owner’s right is 25% of 3 billion, which is equal to 750,000,000, -.
Now from the discussion above it can be seen that the that the land owner gets a land price of 3 billion rupiah plus 750,000,000, – from the profit of the project.
This calculation does not apply if the project is implemented by means of profit sharing in the form of unit sharing. That is, as compensation for his land ownership he gets several units according to the agreement, likewise the developer is entitled to a certain number of units.
With this pattern, there is no need to set the price of the land. Just divide according to the number of units.
The guidelines for the division of the units are not much different from the way in which land prices are set. If the house is to be built for subsidized housing, a more suitable division is 1 in 5 to 7 (depending on location).
This means that for each house construction of 5-7 units, 1 unit will be built for the landowner.
The land owner may own his own unit or sell it himself, it is also possible that the sale will also be handed over to the developer and he will only receive the proceeds from the sale.
Meanwhile, for housing that is classified as real estate, the division is 1 in 3-5.