Tuesday, 20 September 2011

Investing in Land

“Buy land, they're not making it anymore” - Mark Twain

There are many ways to buy land. Whether it be a rental property, vacant land or an office tower downtown, the rich have been getting richer by buying the stuff for years! 

Land Banking is the process of buying and holding land for future sale or development. Parcels for “Land Banking” are those that lie directly in the growth path of rapidly developing cities.

The initial goal is to buy undeveloped land that will increase in value because it lies in the path of urban growth. The key is to identify these parcels well in advance of the development and wait for their values to mature. With diligent research, financing and managing of a land-banked property, one can realize a handsome profit upon the sale.

Keep in mind that there are many different renditions of this practice. Land Banking involves planning, buying, holding, rezoning and selling. They never plan to touch the dirt. Some companies perform the same steps of land banking and also venture into development. The development stage generally bring higher returns.

Companies turn projects quite often. In recent years as the success of this investment market has become more well known, these projects tend to sell out in months, weeks and even days. Open houses are commonly held to showcase new projects as well as describe the methods used by individual companies. Contact me for meeting times or information regarding current projects.

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