When land acquisition goes wrong, it has huge financial implications

When land acquisition goes wrong, it has huge financial implications

I do not own any land as I do not have the holding power to do so. Yes, land is one of the very best investment if one has holding power. From a few ringgit per sq ft, it could be a few hundred per sq ft or even more. Of course it also depends on where the land parcel is yeah. Not every parcel will suddenly appreciate. Some may still be almost the same value if not lower.

What happens if your land is acquired by the government? As usual, it will have to follow all the legal procedures and the price to be paid would be based on market valuations. It is not based on what the government wants to pay or based on what the government has decided. This is why the following case got such a big attention. It’s over 100 hectares and it happened was back in 1956! Yea, actually before our independence.

Article in nst.com.my The 106.72-hectare “Duta enclave” in Kuala Lumpur should be valued at no more than RM6 billion, according to property experts. 

Veteran property analyst Sr. Samuel Tan estimated the land’s value to be between RM5 billion and RM6 billion, averaging around RM500 per square foot (psf). 

“This valuation takes into account the location and comparable land values near the KL Metropolis development. Smaller plots of less than 20 acres within and around KL Metropolis have transacted at an average of RM774 psf. However, it’s important to note that the Jalan Duta land lacks a development order and is a significantly larger parcel, so a discount has been applied,” he told Business Times.

The Duta enclave currently hosts several government buildings, including the Malaysian Institute of Integrity, the National Archives, the Kuala Lumpur Syariah Court, the Inland Revenue Board building, the Malaysian Anti-Corruption Commission Academy (MACA), the National Hockey Stadium, and parts of Jalan Duta (now Jalan Tuanku Abdul Halim) leading to Segambut, as well as some portions of the Federal Territory mosque. Please do read the full article here: Article in nst.com.my

I learnt about mesne profits from the article

I have never heard or seen this word. The article has the word and also the explanation.

“Mesne profits refer to the rents and profits a trespasser could have earned during their occupation, which must be paid to the rightful owner as compensation for the trespass.”

In other words, if someone used our land without you knowing for the past 10 years to grow papayas, when you found out, we can claim rental and profits from their papaya cultivation. So, whatever they sell their papayas for, we have a share too! Quite an amazing deal if someone somehow trespassed and used our land for the last 10 years. In this case, it’s way longer than 10 years. So, the mesne profits will likely to be super huge depending on it’s calculated.

So, how, time to look for piece of land to buy? Happy viewing!

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