This post is a follow-on from the one posted yesterday. The second problem relating to land in
Anguillians have to be persuaded to lease their land. How to do it? Especially when everyone keeps saying that no foreigner wants to take a leasehold interest, they all want to buy. It is not true, of course. It is just what everyone says.
First, government can introduce a heavy tax on the purchase price of land that is sold. Make the seller pay a 15% stamp duty. At the moment only the purchaser pays, and then only a 5% stamp duty. Keep the stamp duty for purchasers, but increase it. Make it higher, much higher. Let leases continue to be free of tax to the landlord. A 15% tax on sellers will be a deterrent.
Second, government can mount a campaign to persuade Anguillians to stop selling land. It is a matter of education. It does not take much. If no land was selling in
Third, as part of the education campaign, Anguillians can soon become aware that a lease can be as good as a sale when it comes to raising money from the lease of land. We don’t have to lease or rent for monthly or annual payments. We can negotiate for all the lease money to be paid up front. That way, we get the full value on the day the lease is signed so we can use the money as we want. A lawyer can easily prepare a lease that so provides.
As part of the education campaign, we have to stop talking about leasing, since it is so unpopular. As everyone wants to sell, we have to learn to start talking about selling a 10 year lease, or selling a 20 year lease. If you go to