THIS IS NOT A LAND BANKING WEBSITE. This is an educational tool which will reveal the opportunities and pitfalls in Land Investment.
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Investment Opportunities
Invest £100,000 in investment land for sale
If you have one hundred thousand pounds or more to buy land as a land investment, there is a plethora of options from which to choose. In fact, you could create a diversified land investment portfolio through buying land of more than one type. In other words you could buy land in different areas or with different maturity profiles (short, medium and long term investment land), insodoing ’spreading your risk’. And if there is one universally recognised law to best investment practice, it is the principle of diversification.
However, that is not to say that to make significant gains in UK land investment, you will need to acquire multiple development land sites: after all, it only takes one land development project to be successful for significant rewards to be reaped. Nevertheless, adding diversification as you build your UK land portfolio is a sensible goal.
One short term land investment option open to you is self build investment land. You could buy development land for sale with planning permission (either outline or detailed) and develop out the site yourself or through using contractors. This form of investing in land can of course be lucrative (particularly if the local property market rises during the build). However it is in many cases pursued by people who want to build their own home for emotional reasons (eg they’ve had a lifelong dream to build the dwelling in which they reside) or practical considerations (eg specific design requirements). At any rate, self build land investment has risen exponentially in popularity in recent years, and so margins have diminished to the extent that a small over-run in terms of time, or a modest underestimate in terms of cost can cause a profitable self build land investment to be loss-making.
Self build land investment is typically short term in nature (unless you buy land without planning permission). It is entirely possible to buy land, develop out the site, and move in or sell/rent the property in less than a year, although some self build land investments can take up to 24 months. In all likelihood, a self build UK land investment will require substantially more than one hundred thousand pounds in total - the cost alone of buying land with planning permission for a three bed detached home could easily exceed £100,000, to which of course the build and architecture costs need to be added. These costs can be met through borrowing (which is commonly drawn-down from the bank in tranches) if the development land has some form of UK land planning permission (this is because financial institutions very rarely lend against land without planning permission).
With £100,000 or more to invest in land, you might also consider pooling your resources with other like-minded people. It is not uncommon for investment syndicates to form in order to realise a land development project. This might entail buying land and building several homes, or perhaps a commercial development (eg office or retail space). The advantage here is that private individuals can exploit economies of scale on a development land project that would otherwise be the preserve of property development firms/commercial land developers.
Finally, if you have £100,000 or thereabouts to invest in land, a self build land investment project will in many cases be unrealistic given the current cost of UK land (unless as mentioned above you are willing to take-on debt to finance the build costs). It may thus be sensible to consider buying land on several Site Assembly land development projects. Such investment land can provide very substantial gains, is usually a medium term investment, and has a significantly lower entry point than a self build land investment. These projects also provide investors with the opportunity to compound their land investment gains which can create very substantial wealth. Site Assembly land development projects are discussed in more detail in the section: Invest £25,000 in investment land for sale
However, that is not to say that to make significant gains in UK land investment, you will need to acquire multiple development land sites: after all, it only takes one land development project to be successful for significant rewards to be reaped. Nevertheless, adding diversification as you build your UK land portfolio is a sensible goal.
One short term land investment option open to you is self build investment land. You could buy development land for sale with planning permission (either outline or detailed) and develop out the site yourself or through using contractors. This form of investing in land can of course be lucrative (particularly if the local property market rises during the build). However it is in many cases pursued by people who want to build their own home for emotional reasons (eg they’ve had a lifelong dream to build the dwelling in which they reside) or practical considerations (eg specific design requirements). At any rate, self build land investment has risen exponentially in popularity in recent years, and so margins have diminished to the extent that a small over-run in terms of time, or a modest underestimate in terms of cost can cause a profitable self build land investment to be loss-making.
Self build land investment is typically short term in nature (unless you buy land without planning permission). It is entirely possible to buy land, develop out the site, and move in or sell/rent the property in less than a year, although some self build land investments can take up to 24 months. In all likelihood, a self build UK land investment will require substantially more than one hundred thousand pounds in total - the cost alone of buying land with planning permission for a three bed detached home could easily exceed £100,000, to which of course the build and architecture costs need to be added. These costs can be met through borrowing (which is commonly drawn-down from the bank in tranches) if the development land has some form of UK land planning permission (this is because financial institutions very rarely lend against land without planning permission).
With £100,000 or more to invest in land, you might also consider pooling your resources with other like-minded people. It is not uncommon for investment syndicates to form in order to realise a land development project. This might entail buying land and building several homes, or perhaps a commercial development (eg office or retail space). The advantage here is that private individuals can exploit economies of scale on a development land project that would otherwise be the preserve of property development firms/commercial land developers.
Finally, if you have £100,000 or thereabouts to invest in land, a self build land investment project will in many cases be unrealistic given the current cost of UK land (unless as mentioned above you are willing to take-on debt to finance the build costs). It may thus be sensible to consider buying land on several Site Assembly land development projects. Such investment land can provide very substantial gains, is usually a medium term investment, and has a significantly lower entry point than a self build land investment. These projects also provide investors with the opportunity to compound their land investment gains which can create very substantial wealth. Site Assembly land development projects are discussed in more detail in the section: Invest £25,000 in investment land for sale