Financial Preparation

• Determine your total investment budget (property lease + construction/renovation + reserves)
• Establish a currency exchange strategy (TOP is not widely traded; usually converted via NZD or AUD)
• Research historical TOP/USD or TOP/CAD exchange rates for favorable timing
• Understand that most transactions are cash-based (limited mortgage options)
• Consider opening an account with ANZ Bank or Bank of South Pacific in Tonga
• Evaluate tax implications in both Tonga and your home country
• Budget for higher contingency reserves than typical international investments (15-20%)

Market Research

• Identify target islands and regions based on investment goals and risk tolerance
• Research infrastructure reliability (electricity, water, internet) in potential areas
• Join online forums for Pacific property investors and Tonga expats
• Connect with Tongan diaspora communities in your home country
• Analyze tourism trends and visitor statistics by island region
• Research shipping and transportation options for building materials
• Plan an extended preliminary market visit (at least 2-3 weeks) to evaluate areas firsthand
• Consider seasonal factors (cyclone season is November-April)

Professional Network Development

• Connect with legal practitioners specializing in foreign investment and land leases
• Identify reputable real estate agents with experience serving foreign clients
• Research building contractors with proven experience in quality construction
• Establish relationships with accommodation providers for extended stays
• Connect with other foreign investors or property owners in Tonga
• Identify reliable property management options if not planning to live on-site
• Build relationships with local shipping/freight agents for importing goods
• Consider engaging a cultural advisor for larger commercial projects

Expert Tip: Tonga operates at a different pace than North America, with relationships and cultural understanding being crucial to successful investments. Your initial visit should focus as much on building relationships and understanding local customs as on viewing properties. Consider timing your first exploratory trip during Tonga’s dry season (May-October) when travel between islands is more reliable and you can explore more potential investment areas.

Recent Regulatory Change: Tonga has recently streamlined its business registration process through an online portal, reducing the time required to establish a company from weeks to days. However, foreign investment registration still requires in-person submission of documents and remains a separate process handled by the Ministry of Commerce, Tourism and Labor.

Banking Setup

• Bank Options in Tonga:
  • ANZ Bank: Largest international bank with branches in Nuku’alofa and Vava’u
  • Bank of South Pacific (BSP): Regional Pacific bank with branches in main centers
  • Tonga Development Bank: Government-owned bank focused on development projects
  • MBf Bank: Smaller commercial bank with limited services
• Typical Requirements:
  • Passport and secondary identification
  • Proof of address (local and foreign)
  • Reference letter from existing bank
  • In-person application in Tonga
  • Minimum deposit (varies by bank, typically TOP 500-2,000)
  • For business accounts: company registration documents
• Banking Limitations:
  • Limited online banking capabilities
  • Restricted international transfer options
  • Higher fees for international transactions
  • Limited banking hours and services
  • Branch networks concentrated in main towns only
• Alternative Approach: Many foreign investors maintain their primary accounts in New Zealand, Australia, or their home country, transferring funds to Tonga as needed. For property purchases, funds are often transferred to the seller’s account or a lawyer’s trust account rather than opening a local account.

Financing Options

Financing options in Tonga are extremely limited for foreign investors:

1. Cash Purchase:
   • Reality: Most foreign investments are cash transactions
   • Process: International wire transfer to lawyer’s trust account or directly to seller
   • Advantage: Simplicity and stronger negotiating position
   • Disadvantage: Requires full capital commitment upfront
2. Limited Local Financing:
   • Availability: Very restricted for foreigners without established local business
   • Requirements: Substantial local income, existing relationship with bank
   • Terms: Higher interest rates (8-12%), shorter terms (5-15 years)
   • Down Payment: 30-50% typically required
3. Seller Financing:
   • Availability: Occasionally available for established properties
   • Structure: Typically requires 40-60% down payment with 3-5 year terms
   • Documentation: Must be properly registered with appropriate authorities
   • Risk Factors: Requires careful legal structuring to protect interests
4. Home Country Financing:
   • Refinancing existing properties in North America
   • Home equity lines of credit (HELOCs)
   • Personal loans or investment credit lines
   • More favorable rates than any local options

Currency Management

The Tongan Pa’anga (TOP) is a tightly controlled currency with specific considerations:

• Exchange Rate Considerations:
  • TOP is pegged to a basket of currencies dominated by the AUD, NZD, and USD
  • Limited fluctuation compared to freely floating currencies
  • Most currency conversion happens through AUD or NZD as intermediaries
  • Bank exchange rates typically less favorable than specialist services
• Currency Services:
  • Services like Wise (formerly TransferWise) don’t directly support TOP
  • Consider using specialist Pacific currency services based in NZ or Australia
  • Banks offer the most reliable but expensive conversion options
  • Cash conversion rates at Tongan banks are often better than wire transfers
• Income Repatriation:
  • No formal restrictions on repatriating rental income
  • Commercial profits may require Foreign Investment Registration approval
  • Bank transfers from Tonga often involve multiple intermediary banks
  • Documentation of source of funds important for anti-money laundering compliance

For most investors, the simplest approach is to maintain funds in USD, AUD, or NZD until needed for specific transactions in Tonga. Major purchases like property leases are sometimes negotiated and paid directly in USD or NZD, bypassing conversion to TOP entirely.

Property Search Resources

• Online Property Portals:
  • Limited online listings compared to developed markets
  • Properties sometimes listed on New Zealand sites (TradeMe, Realestate.co.nz)
  • Expatriate forums and Facebook groups often have unofficial listings
  • Tourism industry networks may advertise properties not publicly listed
• Local Agents:
  • South Pacific Management (Nuku’alofa)
  • Tonga Real Estate (limited formal operations)
  • Vava’u Villa Rentals & Real Estate (Vava’u islands)
  • Note: Most “agents” operate informally without licensing or regulation
• Alternative Search Methods:
  • Local legal practitioners often know of available properties
  • Local business networks and chambers of commerce
  • Expatriate community connections and word-of-mouth
  • Direct inquiries to resorts or businesses that may be for sale
  • Signs and local advertisement boards in towns
• Ministry of Lands:
  • Can provide information on available government land for lease
  • Maintains registry of existing leases and expiration dates
  • Offers maps and survey information for potential development areas

Property Viewing Trip Planning

For overseas investors, a well-planned property viewing trip is essential:

1. Pre-Trip Research:
   • Identify target islands and regions before arrival
   • Make advance connections with local contacts
   • Schedule meetings with lawyers and potential agents
   • Arrange reliable local transportation (rental vehicle or driver)
   • Book accommodation in central locations for each island of interest
2. Trip Logistics:
   • Plan at least 2-3 weeks for a comprehensive viewing trip
   • Allow 3-5 days per island group being considered
   • Book inter-island transportation well in advance (limited schedules)
   • Consider seasonal factors (avoid cyclone season if possible)
   • Bring sufficient cash as ATM and credit card facilities are limited
3. During Viewings:
   • Document everything with photos, videos, and detailed notes
   • Verify boundaries and access rights (often unclear)
   • Check water sources and quality (may be rainwater catchment)
   • Assess electricity reliability and potential for solar/alternative power
   • Test cell signal and internet connectivity (critical for remote work)
   • Visit properties at different times of day (morning/afternoon/evening)
4. Local Logistics:
   • Hire a local guide or facilitator for remote areas
   • Respect cultural protocols when visiting villages or traditional lands
   • Meet with current expatriate property owners for insights
   • Visit during both weekdays (for official meetings) and weekends (to assess activity levels)

Property Evaluation Criteria

Assess potential investments using these key criteria specific to Tonga:

• Location Factors:
  • Access to transportation (roads, wharves, airports)
  • Distance to essential services (medical, shops, fuel)
  • Water depth and reef protection for waterfront properties
  • Elevation (important for tsunami and storm surge risk)
  • Traditional land use patterns and community acceptance
  • Tourist traffic and accessibility for commercial properties
• Infrastructure Considerations:
  • Water access and quality (municipal, well, or rainwater catchment)
  • Electricity reliability and backup options
  • Internet and cell service quality
  • Road condition and year-round accessibility
  • Septic system or sewage management solutions
  • Potential for solar or alternative energy
• Lease Characteristics:
  • Remaining lease term and renewal provisions
  • Annual lease payment amount and adjustment clauses
  • Development restrictions or requirements
  • Quality of lease documentation and registration
  • Relationship with landowner (government, noble, or individual)
  • Previous lease transfers or disputes
• Building Assessment:
  • Construction quality and resistance to tropical conditions
  • Cyclone/hurricane resilience features
  • Materials availability for repairs and maintenance
  • Local building standards compliance
  • Age and condition of critical systems
  • Termite protection and pest management
• Financial Considerations:
  • Total acquisition cost versus regional averages
  • Potential for revenue generation (tourism, agriculture, rental)
  • Local labor availability and costs for operations
  • Shipping costs for materials and supplies
  • Expansion or development potential
  • Comparable recent sales or lease transfers

Expert Tip: When evaluating waterfront property in Tonga, don’t just consider the beach and view. Assess marine access carefully—some beautiful beachfront properties have shallow reef systems that make boat access difficult or impossible at low tide. Properties with deep water access close to shore are significantly more valuable and versatile, especially in the Vava’u group where sailing and boating are major attractions. Always inspect potential properties at both high and low tides to understand the full range of conditions.

Legal Due Diligence

• ✓
  Lease Verification: Confirm existing lease is properly registered with Ministry of Lands
• ✓
  Land Status Search: Verify land classification and ownership records
• ✓
  Boundary Confirmation: Ensure survey markers and boundaries are clearly defined
• ✓
  Easements & Access Rights: Verify legal access to property and any shared facilities
• ✓
  Lease Transfer Approval: Confirm conditions for ministerial approval of transfer
• ✓
  Development Permissions: Check zoning and permitted uses under lease terms
• ✓
  Environmental Compliance: Verify any required environmental assessments
• ✓
  Cultural/Traditional Rights: Research any customary access or usage rights

Physical Due Diligence

• ✓
  Building Inspection: Assess structural integrity and cyclone resistance
• ✓
  Water Systems: Test water quality, assess catchment capacity, and backup systems
• ✓
  Power Systems: Evaluate electrical wiring, generator capacity, and solar potential
• ✓
  Waste Systems: Inspect septic system, drainage, and waste management solutions
• ✓
  Natural Hazard Assessment: Evaluate flood risk, erosion, storm surge potential
• ✓
  Construction Materials: Check for salt damage, termites, and tropical weather impacts
• ✓
  Internet & Communications: Test actual speeds and reliability over multiple days
• ✓
  Access Conditions: Assess road quality during both dry and wet conditions if possible

Financial Due Diligence

• ✓
  Lease Payment History: Verify all lease payments are current and properly documented
• ✓
  Utility Costs: Research actual electricity, water, and maintenance costs
• ✓
  Tax Verification: Confirm all property and business taxes are current
• ✓
  Operational History: For business properties, verify income and expense claims
• ✓
  Renovation Costs: Get estimates from local contractors for planned improvements
• ✓
  Import Costs: Calculate shipping and duty costs for required equipment/materials
• ✓
  Comparable Transactions: Research recent similar property transactions
• ✓
  Operating Reserves: Calculate adequate reserves for remote location challenges

Expert Tip: In Tonga, local knowledge is often more valuable than official documentation. Supplement formal due diligence by speaking with neighboring property owners, village elders (where relevant), and long-term expatriates. They can provide crucial insights about seasonal changes, historical issues with the property, and practical challenges that may not be evident during a brief inspection. This local intelligence often reveals important factors like seasonal flooding, traditional usage patterns, or community expectations that could significantly impact your investment.

Offer and Negotiation

1. Expression of Interest: Usually verbal or informal written communication
2. Initial Negotiation: Discussion of lease transfer price and key terms
3. Conditional Agreement: Often structured as a simple memorandum of understanding
4. Due Diligence Period: Typically 30-90 days depending on property complexity

Unlike North American transactions, property negotiations in Tonga are often less formalized in the early stages. The cultural approach to negotiations is relationship-based rather than transaction-based, with an emphasis on building trust and understanding between parties. Initial agreements are often reached verbally with the formal documentation following later in the process. For foreign buyers, it’s advisable to document key points in writing even during these preliminary stages.

Lease Transfer Process

1. Engage Legal Representation:
   • Hire a Tongan lawyer experienced in land transactions
   • Provide power of attorney if not present for entire process
2. Formal Due Diligence:
   • Land registry searches at Ministry of Lands
   • Lease terms verification and documentation review
   • Property inspections and assessments
3. Lease Transfer Agreement:
   • Draft formal agreement for transfer of leasehold interest
   • Include clear terms for improvements, chattels, and conditions
   • Detail payment structure and timing
4. Ministerial Consent Application:
   • Prepare application to Ministry of Lands for consent to transfer
   • Submit required documentation about buyer and intended use
   • Processing time typically 4-12 weeks
5. Deposit Payment:
   • Typically 10-20% held in lawyer’s trust account
   • Usually paid after ministerial consent application submitted
   • Conditions for refund clearly specified
6. Final Approval and Registration:
   • Receipt of ministerial approval for transfer
   • Payment of lease transfer fees and stamp duty
   • Registration of lease transfer with Land Registry
7. Closing and Handover:
   • Balance payment transferred
   • Physical handover of property
   • Transfer of keys, documents, and operational information

The timeframe from initial agreement to completion typically ranges from 3-6 months, though it can be longer for complex properties or if there are unusual features of the lease that require special approvals. The ministerial consent process is the most unpredictable element in terms of timing.

Transaction Costs

Budget for these typical transaction expenses:

• Lease Transfer Premium:
  • The negotiated price to the current leaseholder for transferring rights
  • Typically covers both the leasehold interest and physical improvements
  • Usually the largest component of the transaction
• Legal Fees: TOP 3,000-8,000 ($1,300-3,500 USD) depending on complexity
• Land Registration Fees: Approximately 1% of lease transfer value
• Stamp Duty: Approximately 0.5% of lease transfer value
• Foreign Investment Registration Fee: TOP 1,000 ($440 USD) for new registrations
• Survey Costs: TOP 2,000-5,000 ($880-2,200 USD) if new survey required
• Currency Conversion Costs: Varies by provider (1-3% typical)

Total transaction costs for foreign investors typically range from 5-8% of the lease transfer value. For business property transfers, there may be additional costs related to business license transfers, inventory valuation, and employee transitions.

Expert Tip: The key to a smooth transaction in Tonga is building flexibility into your timeline. Government processes often take longer than initially estimated, and the concept of time operates differently than in North America. Consider including “long-stop dates” in your agreement that automatically extend timeframes for governmental approvals, rather than having firm deadlines that might force renegotiation. Plan your visit schedule accordingly, with contingency time built in for unexpected delays in the process.

Administrative Tasks

• ✓
  Annual Lease Payments: Ensure system for timely payment of annual lease fees
• ✓
  Utility Transfers: Change electricity accounts to your name (where applicable)
• ✓
  Property Insurance: Secure appropriate coverage for buildings and contents
• ✓
  Business Licensing: Obtain necessary operational licenses if applicable
• ✓
  Tax Registration: Register with tax authorities if generating income
• ✓
  Employment Documentation: Register as employer if hiring staff
• ✓
  Local Authority Registration: Notify local district/town officer of ownership change

Regulatory Compliance

Properties in Tonga must comply with several regulations:

• Building and Safety Standards:
  • National Building Code compliance for new construction
  • Specific requirements for cyclone resistance in newer structures
  • Fire safety measures for commercial properties
  • Electrical standards compliance for wiring and generators
• Environmental Regulations:
  • Environmental Impact Assessment for significant developments
  • Coastal zone management restrictions
  • Protected species and habitat considerations
  • Waste management and disposal requirements
• Tourism Operations:
  • Tourism business licensing from Ministry of Tourism
  • Accommodation standards compliance
  • Tour operator safety certifications (if applicable)
  • Food safety standards for hospitality operations
• Business Operations:
  • Business license renewal (annually)
  • Foreign investment registration renewal (as required)
  • Employment regulations compliance
  • Tax filing and reporting obligations

Enforcement of regulations varies throughout Tonga, with more consistent application in urban areas and more flexible approaches in remote locations. However, it’s always advisable to maintain compliance regardless of enforcement patterns, particularly for businesses serving tourists or high-profile operations.

Record Keeping

Maintain comprehensive records for legal and operational purposes:

• Property Documents:
  • Original lease document and transfer agreement
  • Survey maps and boundary documentation
  • Annual lease payment receipts
  • Property insurance policies
  • Building permits and approvals
• Financial Records:
  • All property-related expenses with receipts
  • Utility payments and records
  • Staff payment records (if applicable)
  • Income records for rental or commercial operations
  • Tax filings and payments
• Business Documentation:
  • Business licenses and renewals
  • Foreign investment registration certificates
  • Operational permits and certificates
  • Staff employment contracts
  • Supplier agreements and invoices
• Communication Records:
  • Correspondence with government authorities
  • Communication with property managers
  • Neighbor and community agreements
  • Service provider contracts and correspondence

Keep digital copies of all important documents stored in multiple locations, including secure cloud storage. Physical copies of critical documents should be kept both in Tonga and in your home country. Consider appointing a reliable local representative to maintain an accessible set of key documents in case of emergency.

Expert Tip: Create a “property bible” containing all essential information about your Tongan property, including operational instructions, contact information for service providers, maintenance schedules, and copies of key documents. Make this available to your property manager or caretaker, and update it regularly. This resource is invaluable for remote ownership and helps ensure continuity of management during ownership transitions or emergencies. Include detailed information about water systems, power generation, and other critical infrastructure that may operate differently than in North America.

Tongan Tax Obligations

• Consumption Tax (CT):
  • 15% value-added tax on goods and services
  • Registration required for businesses with turnover exceeding TOP $100,000
  • Quarterly filing and payment requirements
  • Residential property rental income generally exempt
• Income Tax:
  • Progressive rates from 0-20% for individuals
  • Flat 25% rate for companies
  • Required for all income generated in Tonga
  • Annual filing and payment requirements
• Withholding Tax:
  • 15% on dividends paid to non-residents
  • 15% on interest paid to non-residents
  • 15% on royalties paid to non-residents
  • Typically withheld by Tongan payer
• Stamp Duty:
  • 0.5% on lease transfer values
  • Due at time of registration
  • Paid to Ministry of Revenue & Customs
• Land Lease Tax:
  • Minimal annual fee based on lease category
  • Payable to Ministry of Lands
  • Separate from lease payments to landowner

Home Country Tax Obligations

Tonga does not have comprehensive tax treaties with either the United States or Canada, which can complicate tax planning. Consultation with tax professionals experienced in both your home country and Pacific island investments is strongly recommended to optimize your tax position and ensure compliance with all reporting requirements.

Tax Planning Strategies

• Entity Structure: Evaluate whether personal ownership or company structure optimizes tax position
• Income Characterization: Properly categorize different types of income (rental, business, service)
• Expense Documentation: Maintain meticulous records of all deductible expenses
• Strategic Timing: Consider tax year implications for major transactions
• Capital Improvements: Document all capital expenditures which may reduce future tax liability
• Employment Structure: For businesses, optimize staff employment arrangements
• Revenue Recognition: Understand implications of cash vs. accrual accounting
• Exit Strategy Planning: Consider tax implications of different exit approaches

While Tonga’s tax system is relatively straightforward compared to many countries, the interaction with North American tax obligations creates complexity. Working with qualified tax professionals in both jurisdictions is essential to developing a compliant and efficient tax strategy.

Expert Tip: For U.S. citizens with significant Tongan investments, consider structuring your activities to qualify for the Foreign Earned Income Exclusion (FEIE) if you spend substantial time in Tonga. For 2024, this allows exclusion of up to $126,500 of foreign earned income from U.S. taxation if you meet either the physical presence test (330 days in foreign countries during a 12-month period) or the bona fide residence test. This can substantially reduce U.S. tax liability for those actively managing Tongan investments or businesses while living at least part-time in Tonga.

Remote Management Considerations

Managing Tongan property from North America presents unique challenges:

• Time Zone Differences:
  • Tonga is 19-21 hours ahead of Eastern Time (varies with daylight saving)
  • Limited overlap in business hours for communication
  • Plan for delayed response times on urgent issues
• Communication Limitations:
  • Internet connectivity can be unreliable, especially in outer islands
  • Video calls may be challenging due to bandwidth constraints
  • WhatsApp and Facebook Messenger are common local communication tools
  • Satellite phones may be necessary for emergency communication in remote areas
• Banking and Financial Management:
  • Limited remote banking capabilities with Tongan banks
  • Cash-based economy creates challenges for remote fund transfers
  • Western Union and MoneyGram often used for quick transfers to caretakers
  • Consider appointing a trusted financial representative with formal power of attorney
• Emergency Response:
  • Develop clear protocols for different emergency scenarios
  • Maintain emergency fund accessible to local management
  • Establish relationships with neighboring property owners
  • Consider enhanced insurance coverage for remote ownership

Management Agreement Essentials

When establishing management arrangements in Tonga, ensure these key elements are addressed:

• Scope Definition: Clear description of manager/caretaker responsibilities and limitations
• Compensation Structure: Detailed payment terms, currency, and payment methods
• Reporting Requirements: Frequency and format of condition reports and financial updates
• Decision Authority: Spending limits and approval requirements for maintenance/repairs
• Performance Metrics: Clear expectations and evaluation criteria
• Term and Termination: Contract duration and conditions for early termination
• Communication Protocols: Expected response times and emergency procedures
• Replacement Planning: Procedures if manager is temporarily unavailable
• Dispute Resolution: Clear process for addressing performance concerns
• Record Keeping: Requirements for maintaining property and financial documentation

In Tonga, personal relationships often supersede formal contracts in practice. While written agreements are essential, investing time in building strong, trust-based relationships with your management team is equally important for successful remote ownership.

Expert Tip: Consider a hybrid management approach for remote ownership in Tonga. Engage a trusted local caretaker for day-to-day oversight and basic maintenance, combined with periodic professional inspections by a qualified property manager or building professional. This combines the advantages of consistent on-site presence with the accountability and expertise of professional oversight. For vacation rentals, using international booking platforms (Airbnb, VRBO) while having local guest management can provide the best balance of global marketing reach and on-the-ground support.

Exit Options

Sale Process

When selling your Tongan property interest:

1. Pre-Sale Preparation:
   • Resolve any outstanding lease payment issues
   • Complete essential maintenance and repairs
   • Update financial records for business properties
   • Gather all property documentation
   • Consider property improvements with high ROI
2. Marketing Strategy:
   • Determine realistic pricing based on comparable sales
   • Prepare professional photography and property documentation
   • Consider international marketing through specialized channels
   • Target specific buyer profiles (tourism operators, expatriates)
   • Utilize social media and expatriate networks
3. Buyer Qualification:
   • Verify financial capacity early in discussions
   • Ensure buyer understands lease limitations
   • Assess likelihood of obtaining ministerial approval
   • Evaluate buyer’s plans for cultural compatibility
4. Negotiation and Agreement:
   • Draft comprehensive sale agreement with legal assistance
   • Include clear contingencies and timelines
   • Consider escrow arrangements for deposits
   • Structure payment terms clearly
5. Transfer Process:
   • Support buyer’s due diligence process
   • Assist with ministerial approval application
   • Coordinate with respective legal representatives
   • Arrange physical handover and training if relevant
6. Post-Sale Requirements:
   • Tax filings in both Tonga and home country
   • Final utility settlements and account closures
   • Formal business deregistration if applicable
   • Banking account closure and fund repatriation

The sales process in Tonga typically takes 6-18 months from listing to completion, significantly longer than in North American markets. Patience and flexibility are essential, particularly regarding pricing expectations and deal structuring.

Market Exit Timing Considerations

Several factors should influence your exit timing decision:

• Remaining Lease Term: Property value typically decreases as lease term shortens; consider selling with at least 15-20 years remaining
• Tourism Cycles: Consider timing sale during tourism industry upswings when investor interest is higher
• Currency Exchange Rates: Monitor TOP/USD or TOP/CAD trends; a weaker pa’anga creates affordability for foreign buyers
• Infrastructure Developments: Major improvements in transportation or utilities can significantly enhance property values
• Political Climate: Stability and favorable foreign investment policies increase buyer confidence
• Seasonal Factors: May-October typically sees more visitor traffic and potential buyers
• Tax Considerations: Coordinate sale timing with tax planning in home country
• Personal Circumstances: Health, age, and ability to manage remote property should influence timeline

The most successful exits from Tongan investments typically involve advance planning (1-2 years) with gradual improvements to the property, systematic documentation of financial performance, and development of a compelling narrative around the property’s potential. Given the niche market, targeting the right buyer profile is often more important than waiting for market conditions to change.

Expert Tip: Consider a lease extension negotiation before marketing your property if the remaining term is less than 20 years. While this involves additional cost and time, properties with longer remaining lease terms command significantly higher premiums and attract a wider buyer pool. The process typically takes 3-6 months and requires approval from both the landowner and the Ministry of Lands, but can substantially increase your property’s marketability and value, often delivering a return of 3-5 times the cost of the extension.