by Robert John Stevens, September 27, 2017
For innovation to flourish, farmers, developers and entrepreneurs need capital.
Landowners need loans for a variety of reasons, but when governments such as Utah County deny settlement, to obtain higher loans from banks, landowners must agree to lien more of their property, take more risk and in some cases bet the farm.
For example, yesterday my parcel #8 in Benjamin, Utah, a 5.25-acre parcel, was recorded with Utah County as an improved, buildable lot causing its value on the Utah County records to soar from $89,400 to $192,300.
As raw land, local banks would only lend me up to 50% of its value compared to 75% now that Utah County declares it as an improved building lot:
50% of $89,400 is $44,700
75% of $192,300 is $144,225
That’s a 322% increase!
I desperately need a $400,000 loan to build, pave and dedicate a 3/4-mile interior road so Utah County will declare two more of my lots buildable, even though all the improvements are completed including a 62-foot paved road stub, but that required liens against nine, 5.25-acre unimproved lots. The risk of losing all of them is too great.
What if Utah County reverts back to its pioneer roots and declared all land to be buildable? Settlers then could exercise their inalienable private property rights, build on their own lands and make improvements as needed according to county specifications, and borrow a lot more with much less risk.
Now that my lot is declared bulidable, my taxes are higher and I don’t want higher taxes, especially since no buildings are built.
Until relatively recent times in America, all land was buildable. The Founding Fathers were careful not to interfere with private property rights. Until the establishment of the Federal Reserve banksters in 1913, there were basically no regulations in the United States and yet we produced the majority of the world’s goods and were the richest country in the world.
Today endless government regulations may solve problems but cause others. For the abundant life, citizens must be allowed to build on their own lands.
Modern innovations provide many alternatives for modern conveniences such as utilities, clean water and road materials, none which were available just 100 years ago when inalienable rights were honored and the middle class prospered.
Emails today between me and Brayden Brucker at Utah Valley Credit Union (UCCU):
Yesterday one of my 5.25-acre parcels was recorded with Utah County as a buildable lot causing its value on the county records to soar from $89,400 to $192,300.
What percentage of a land’s value as determined by Utah County do you lend on? 40%, 45%, 50%?
From Brayden Brucker:
If it is considered an improved building lot – meaning it is ready to build on, we can go up to 75%. Raw Land is up to 50% loan-to-value. So we would lend between 50-75%.