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 £25,000 in investment land for sale
Investing £25,000 in land may seem a random number to pluck from the air, but it is in fact a fairly common level for people in the UK buying land as a land investment. A number of reasons explain this: firstly many people have total investable assets of £100-150,000 so allocating around one quarter to one third in investment land complements the traditional portfolio model composed of equity and fixed income investments.
Secondly, there is an entire new generation of people in the UK who are alert to the value which resides in English land development, particularly given the recent historical performance of land investments versus equity investments. These people - typically in their 30s and early 40s - are thus acquiring development land for sale at around the £25-50,000 level (eg with a view to paying for future school or university fees, or a second home etc). Finally, It is also the case that there are many in the UK who have benefited from the rising property market over the last five years and who are now buying land for sale for investment purposes by means of releasing some of the equity in their homes (a £50,000 equity release is not uncommon, a proportion of which is often channelled into investment land).
If you have around £25,000 to invest in land for sale, there are several choices available. You could purchase non development land in order to use it for light commercial purposes eg as a camping or caravan site. Alternatively you could take a very long term view in the form of speculative land investment. This entails predicting the future ’path of growth’ of towns and conurbations and buying land well ahead of development. There has recently been coverage in the media of speculative land investment success stories: people buying land and receiving offers of many times the original price they paid for their UK land in a relatively short space of time. Reaping rewards from speculative land investment is however usually only possible in the long term. Potentially viable development land sites in and around populated areas in the UK are in most cases already owned by land developers so a private investor who is interested in speculative land investment will in general need to look further afield (no pun intended). As such, land for sale of this type will likely to take longer to experience capital growth.
Site Assembly land investment projects are typically available from around £25,000. Site Assembly is the work carried-out by property development firms: it encompasses pre-acquisition research and appraisals, legal work during acquisition, and post-acquisition urban land planning, design and architecture. In essence, Site Assembly land investment projects entail the investor buying land on a land development project which is already underway. Land for sale on these projects is usually sold freehold to the investor as land without planning permission and then ’bought-back’ from the investor once UK land planning permission is granted. The investment land’s value will likely have increased significantly (owing to a land planning award) meaning investors can achieve gains of around 400-500% in a medium term time-frame (eg five years). The advantages of these type of land investment projects - beyond the lucrative returns on offer - are several: there is a defined exit strategy (ie the ’buy-back’ agreement) and they do not require expertise in land development (since specialists are appointed to work on the investors’ behalf). Finally, Site Assembly land investment lends itself well to investors with a long, as well as a medium term outlook. This is because you can reinvest your investment land gains from one project into another such that an initial £25,000 principal investment could grow into land investment gains of £750,000 in a decade.
Secondly, there is an entire new generation of people in the UK who are alert to the value which resides in English land development, particularly given the recent historical performance of land investments versus equity investments. These people - typically in their 30s and early 40s - are thus acquiring development land for sale at around the £25-50,000 level (eg with a view to paying for future school or university fees, or a second home etc). Finally, It is also the case that there are many in the UK who have benefited from the rising property market over the last five years and who are now buying land for sale for investment purposes by means of releasing some of the equity in their homes (a £50,000 equity release is not uncommon, a proportion of which is often channelled into investment land).
If you have around £25,000 to invest in land for sale, there are several choices available. You could purchase non development land in order to use it for light commercial purposes eg as a camping or caravan site. Alternatively you could take a very long term view in the form of speculative land investment. This entails predicting the future ’path of growth’ of towns and conurbations and buying land well ahead of development. There has recently been coverage in the media of speculative land investment success stories: people buying land and receiving offers of many times the original price they paid for their UK land in a relatively short space of time. Reaping rewards from speculative land investment is however usually only possible in the long term. Potentially viable development land sites in and around populated areas in the UK are in most cases already owned by land developers so a private investor who is interested in speculative land investment will in general need to look further afield (no pun intended). As such, land for sale of this type will likely to take longer to experience capital growth.
Site Assembly land investment projects are typically available from around £25,000. Site Assembly is the work carried-out by property development firms: it encompasses pre-acquisition research and appraisals, legal work during acquisition, and post-acquisition urban land planning, design and architecture. In essence, Site Assembly land investment projects entail the investor buying land on a land development project which is already underway. Land for sale on these projects is usually sold freehold to the investor as land without planning permission and then ’bought-back’ from the investor once UK land planning permission is granted. The investment land’s value will likely have increased significantly (owing to a land planning award) meaning investors can achieve gains of around 400-500% in a medium term time-frame (eg five years). The advantages of these type of land investment projects - beyond the lucrative returns on offer - are several: there is a defined exit strategy (ie the ’buy-back’ agreement) and they do not require expertise in land development (since specialists are appointed to work on the investors’ behalf). Finally, Site Assembly land investment lends itself well to investors with a long, as well as a medium term outlook. This is because you can reinvest your investment land gains from one project into another such that an initial £25,000 principal investment could grow into land investment gains of £750,000 in a decade.