Land Investment

How Many reasons do you need to start investing in "Land"?

• If you've lost money in the stock market as most investors have, you probably have plenty of reasons.
• If you want the great feeling of ownership that comes with becoming a landowner you'll like investing in land.
• If you have a family and want the security of a good solid land, Building Plots for Sale is an excellent choice.
• Land has increased in value continuously and no more land is being made.
• The pieces keep getting smaller and the prices keep getting higher.
• Everyone has heard or said at one time or another, "I should have bought land years ago when it was cheaper."
• College funds can benefit from a strong land investment portfolio.
• More millionaires are made through real estate than any other way.
• You can invest as little or as much as you want.
• With today's interest rates we should all have a land payment. We should leverage what ever we can afford.

The vast majority of the profit in many real estate transactions comes from the land due to appreciation, entitlement efforts, demographic pressure, etc., rather than a profit made during construction or later while managing property. This has led us to focus on land development, which includes land mapping and/or entitling land to be developed as a significant part of our business. We've also learned that if you treat land as inventory while using a last in, first out (LIFO) basis of accounting, that profits go to pay for the same type of land at increased prices.

Less Risk

Investing in land offers an excellent return on investment due to its high profit margins, and there is less risk due to a faster turnover compared to building plots for Sale, constructing and then managing the property. If the land is purchased raw and subsequently entitled, it offers excellent safety since there is usually significant appreciation just as a result of the entitlement process.

There are many factors that affect profits during the development process that add to the risk during construction phase of the process. This includes dealing with material shortages, cost overruns, subcontractor problems, lenders, building defects, lawsuits and more. When you are in the land development business, you don't deal with construction, lease-up and rental, long sellout periods, or lender difficulties. These risks are greatly reduced.

Simple To Operate

The land investment business can be operated simply when compared to other aspects of the real estate business. There are fewer management issues, less personnel, more control and fewer moving parts. When a market feasibility is done correctly, you can plan to have land that turns quickly. Land investments can turn faster than building or buying income properties and you can find greater profits using the same capital since you can turn investment more quickly.

Essentials of Land Investment Feasibility Studies

Whether the investor in vacant land is a speculator or a developer of buildings, the property's location and physical quality will have a significant impact on the success of the investment. Timing strategies, farming losses, development costs and community attitudes also affect the land investor's potential profits.

Why Invest In Land?

A rare combination of factors affecting the UK, has created a window of opportunity that has the potential to deliver substantial benefits for those who act now.

A piece of carefully selected UK land has the potential to return many times its original value.

Typical values of land residential development as at 2006.