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 £50,000 in investment land for sale
For those with £50,000 to invest in land, the options are multiple. A self-build land investment however is unlikely to be viable simply because buying land with planning permission - given current UK house prices - is likely to require rather more than £50,000. As a rule of thumb, UK land with planning permission commands a value of around one third of the final, retail value of the property (for which land planning permission has been granted). Therefore, if you wanted to buy land with planning permission suitable for a three bedroom home with a market value of £300,000, the development land site would likely cost around £100,000.
The choices for people with £50,000 to buy land obviously include all those overviewed in the sections I Invest £10,000 in investment land for sale I and I Invest £25,000 in investment land for sale I. That is, long term speculative land investment, buying land for light commercial purposes, and acquiring land for sale on a Site Assembly land development project. There are however two significant advantages which flow from having £50,000 or more to invest in land.
The first is the ability to achieve real diversification through acquiring several land investment sites. Holding more than one piece of investment land is preferable to a single land investment site simply because you have an improved chance of participating in rising local UK land values through holding assets in more than one area. The second major advantage of being in a position to invest £50,000 in land or to invest £75,000 in land is that it provides access to slightly larger scale (and sometimes shorter term) land investment opportunities, than is the case at the £20,000 investment land level. However, if you are investing £50,000 in land and are looking to acquire a diversified UK land portfolio, it is unlikely you will be able to buy land on multiple Site Assembly land development projects (since their entry point is usually around £25,000). So to spread your risk you could consider buying land on one, or possibly two Site Assembly land investments (eg inner city/suburban property development projects) as well as acquiring some cheaper, long term speculative investment land. This could achieve a good balance ie short-to-medium and long term maturity profiles and urban and rural UK land.
Alternatively you may wish to acquire a diversified UK land portfolio through purely speculative investment land acquisitions. In practice this might entail you engaging the services of a UK land agent whom you would instruct to draw-up a short list of land which could have long-term development potential. This approach to land investment may also present an opportunity to generate a yield: you could buy land in expectation of residential or commercial development in the long-term, but use it for light commercial purposes (eg camp site, car park etc) in the meantime. Speculative land investment of this kind obviously does not suit everyone: sifting through a wide range of UK land sites and judiciously choosing the one(s) with real development potential is no ’walk in the park’; and to generate a yield invariably requires the person who is investing in land to ’gets their hands dirty’.
There is therefore no correct way to answer the question: what is the best way to invest £50,000 in land? It depends on your land investment aims (specifically, the time horizons) and your expertise/interest in land. There is no doubt that a carefully constructed portfolio of speculative UK land could reap huge returns in the years ahead, but buying land purely on ’hope value’ by no means guarantees a lucrative pay-day in the future. In most cases, speculative land investment is best when it is complemented with shorter term land investment eg Site Assembly land development projects, since the latter provide a more clearly defined exit strategy and are usually shorter term in nature.
The choices for people with £50,000 to buy land obviously include all those overviewed in the sections I Invest £10,000 in investment land for sale I and I Invest £25,000 in investment land for sale I. That is, long term speculative land investment, buying land for light commercial purposes, and acquiring land for sale on a Site Assembly land development project. There are however two significant advantages which flow from having £50,000 or more to invest in land.
The first is the ability to achieve real diversification through acquiring several land investment sites. Holding more than one piece of investment land is preferable to a single land investment site simply because you have an improved chance of participating in rising local UK land values through holding assets in more than one area. The second major advantage of being in a position to invest £50,000 in land or to invest £75,000 in land is that it provides access to slightly larger scale (and sometimes shorter term) land investment opportunities, than is the case at the £20,000 investment land level. However, if you are investing £50,000 in land and are looking to acquire a diversified UK land portfolio, it is unlikely you will be able to buy land on multiple Site Assembly land development projects (since their entry point is usually around £25,000). So to spread your risk you could consider buying land on one, or possibly two Site Assembly land investments (eg inner city/suburban property development projects) as well as acquiring some cheaper, long term speculative investment land. This could achieve a good balance ie short-to-medium and long term maturity profiles and urban and rural UK land.
Alternatively you may wish to acquire a diversified UK land portfolio through purely speculative investment land acquisitions. In practice this might entail you engaging the services of a UK land agent whom you would instruct to draw-up a short list of land which could have long-term development potential. This approach to land investment may also present an opportunity to generate a yield: you could buy land in expectation of residential or commercial development in the long-term, but use it for light commercial purposes (eg camp site, car park etc) in the meantime. Speculative land investment of this kind obviously does not suit everyone: sifting through a wide range of UK land sites and judiciously choosing the one(s) with real development potential is no ’walk in the park’; and to generate a yield invariably requires the person who is investing in land to ’gets their hands dirty’.
There is therefore no correct way to answer the question: what is the best way to invest £50,000 in land? It depends on your land investment aims (specifically, the time horizons) and your expertise/interest in land. There is no doubt that a carefully constructed portfolio of speculative UK land could reap huge returns in the years ahead, but buying land purely on ’hope value’ by no means guarantees a lucrative pay-day in the future. In most cases, speculative land investment is best when it is complemented with shorter term land investment eg Site Assembly land development projects, since the latter provide a more clearly defined exit strategy and are usually shorter term in nature.