Land banking is a relatively new investment concept that allows smaller investors to own a piece of valuable land.
How does land banking work?
When large parcels of land are put up for sale, they are usually far too expensive for a single small investor. Land that’s in a good place for residential or business development is usually either bought by a land investment company or by a property developer. The owner then “banks” or holds onto the land until they are ready to sell it or develop it. During this time, they can parcel the land up into smaller, much more affordable section and sell these sections to private investors. Each investor holds the freehold to their land, and can sell at any time, although the best profits are usually realised when planning permission is granted for the site.
How much does it cost?
The cost of the land to small investors will depend upon the type of land, the potential for development and the size of the land. For as little as £5,000, investors can buy a good-sized piece of land in a prestigious location. You can, of course, choose to spend much more, and the land parcels are often graduated in size to accommodate a range of investors.
Is it complicated to buy?
Land is easier to buy than property. It is still a legal contract, though, so it’s worth getting it checked by your solicitor. The straightforward nature of the purchase means that it can often be completed within 28 days.
Can I sell it?
In most, if not all cases, when you buy the land, you also acquire the freehold. This means that you can sell the land on at any time. Most people hold on to their property for between 2-8 years, to realise profits from the development of the site, but you can sell whenever you want or need to.
Where do I start?
If you’re interested in land investment, then talk to a land agent. They will have a variety of sites on their books and have the experience and expertise to guide and advise you throughout the process.
Author: Nationwide
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Land Parcels for resort development. Direct beach access, priced to sell Red Sea, Hurghada, Egypt. Red Sea Resorts
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Brand new 1 or 2 bedroom apartments/flats in Red Sea city of Marsa Alam Egypt.Egypt Apartment For Sale
Showing posts with label investment company. Show all posts
Showing posts with label investment company. Show all posts
Sunday, June 14, 2009
Saturday, June 13, 2009
Turning Land Into Cash
Land investment is no longer the preserve of the super-wealthy and big developers. As a small investor, and with a little help, you can now turn land into cash.
What’s the attraction of land?
When you’re thinking of something to do with your money, land is rarely at the top of the list. That’s because most people assume that any land with development potential will be too expensive for them, and so they turn to more affordable investments such as savings accounts, FTSE 100 company shares and tracker funds. Take another look at the potential of land though, because it could make you more money than all your other investments combined.
Why are the potential profits so great?
As a private investor, you will be buying a parcel of land within a larger plot; this is what makes it affordable. The land company buys a large area of land that it has researched and which it thinks has a high likelihood of being ear-marked for housing development in the future. The land is reasonably cheap because it doesn’t have planning permission attached to it, and so the investment company divides it into smaller plots so that private investors can buy affordable land. If the company is right, and the land is later granted planning permission, the value of the land increases substantially – sometimes by as much as 800% - and significant profits can be made. The UK’s demand for housing is increasing every year and there is a constant need for new development, so more land is needed to fulfil the housing need.
Are there risks?
Land is the same as any other investment; profits cannot be guaranteed. There is a risk that planning permission will not be granted for the site where you hold land. That’s why you should always speak to a reliable land agent and make sure that you are happy with the investment company’s reasons for thinking that the land has development potential. No land agent should promise profits, but if you invest wisely, you could see an amazing return on your investment.
Author: Strategic Land Investments
Beach Property For Sale
Land Parcels for resort development. Direct beach access, priced to sell Red Sea, Hurghada, Egypt. Red Sea Resorts
Egypt Apartments For Sale
Brand new 1 or 2 bedroom apartments/flats in Red Sea city of Marsa Alam Egypt.Egypt Apartment For Sale
What’s the attraction of land?
When you’re thinking of something to do with your money, land is rarely at the top of the list. That’s because most people assume that any land with development potential will be too expensive for them, and so they turn to more affordable investments such as savings accounts, FTSE 100 company shares and tracker funds. Take another look at the potential of land though, because it could make you more money than all your other investments combined.
Why are the potential profits so great?
As a private investor, you will be buying a parcel of land within a larger plot; this is what makes it affordable. The land company buys a large area of land that it has researched and which it thinks has a high likelihood of being ear-marked for housing development in the future. The land is reasonably cheap because it doesn’t have planning permission attached to it, and so the investment company divides it into smaller plots so that private investors can buy affordable land. If the company is right, and the land is later granted planning permission, the value of the land increases substantially – sometimes by as much as 800% - and significant profits can be made. The UK’s demand for housing is increasing every year and there is a constant need for new development, so more land is needed to fulfil the housing need.
Are there risks?
Land is the same as any other investment; profits cannot be guaranteed. There is a risk that planning permission will not be granted for the site where you hold land. That’s why you should always speak to a reliable land agent and make sure that you are happy with the investment company’s reasons for thinking that the land has development potential. No land agent should promise profits, but if you invest wisely, you could see an amazing return on your investment.
Author: Strategic Land Investments
Beach Property For Sale
Land Parcels for resort development. Direct beach access, priced to sell Red Sea, Hurghada, Egypt. Red Sea Resorts
Egypt Apartments For Sale
Brand new 1 or 2 bedroom apartments/flats in Red Sea city of Marsa Alam Egypt.Egypt Apartment For Sale
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