- Land Investment Guidelines
- Region of high housing demand
- Sustainability study prior to acquisition
- Transport and road access
- Amenities for new developments
- Successful land track-record
- Land site holding
- Funding the planning work
- Overage payment on the land
- Title deeds and site access
- Legal advise prior to commitment
- Land investment time scales
- The buy-back stage
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 Guidelines
Land investment time scales
Are the time scales quoted for the investment land reasonable?
Investing in land is not a ‘get-rich quick’ scheme. Whilst land investment does of course provide substantive wealth-building opportunities, you should be wary if you are offered stellar returns in a short space of time from a land investment project.
It is difficult to generalise in respect of what is a ‘reasonable’ land investment timeframe. The most lucrative UK land investments are those which entail changing-the-use of the investment land site (ie from non-residential to residential use): these types of land investment projects can take five or six years under current UK land planning guidelines.
You should not however be discouraged from investing in land on account that the projected returns are high (eg 300-600%): in 5-6 year land investment projects such returns are fairly common.
A useful indicator in terms of the reasonableness of quoted timescales of any land investment site is the Local Development Framework (LDF). Anyone buying land should enquire as to status of the LDF relevant to the investment land site: whilst dates are prone to slip in the LDF, it nevertheless provides important indicators for all those involved in buying land.
The best investment land has a relatively defined time horizon, although given investment land’s nature – and that of the UK land planning system – even the most adept land investment providers will not be able to give definitive maturity dates for their investment land projects.
What you should be looking for when buying land is a robust knowledge of the LDF on the part of your land investment provider and willingness on the latter’s part to discuss with you its status and how it impacts the investment land they are selling.
Investing in land is not a ‘get-rich quick’ scheme. Whilst land investment does of course provide substantive wealth-building opportunities, you should be wary if you are offered stellar returns in a short space of time from a land investment project.
It is difficult to generalise in respect of what is a ‘reasonable’ land investment timeframe. The most lucrative UK land investments are those which entail changing-the-use of the investment land site (ie from non-residential to residential use): these types of land investment projects can take five or six years under current UK land planning guidelines.
You should not however be discouraged from investing in land on account that the projected returns are high (eg 300-600%): in 5-6 year land investment projects such returns are fairly common.
A useful indicator in terms of the reasonableness of quoted timescales of any land investment site is the Local Development Framework (LDF). Anyone buying land should enquire as to status of the LDF relevant to the investment land site: whilst dates are prone to slip in the LDF, it nevertheless provides important indicators for all those involved in buying land.
The best investment land has a relatively defined time horizon, although given investment land’s nature – and that of the UK land planning system – even the most adept land investment providers will not be able to give definitive maturity dates for their investment land projects.
What you should be looking for when buying land is a robust knowledge of the LDF on the part of your land investment provider and willingness on the latter’s part to discuss with you its status and how it impacts the investment land they are selling.