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Rewards vs Risk

What are the rewards?

The rewards from investing in land can be exceptional.. We have to remember that land is a finite resource, it’s a tangible asset, it cannot go out of business. If your land is re-zoned for development, the increase in value can be many times your initial investment.

The value of Land can increase in a number of different ways;

  • If there is a limited supply of land (If something can’t be manufactured, and demand remains constant, the value will inevitably rise)

  • Increasing property values (due to demand outstripping supply)

  • Housing Shortage

  • By land being re-zoned for development (gaining planning permission)

  • Population Increasing

The Government realise the need for prime land:

“Landowners and developers typically make windfall gains as a result of residential planning permission being granted, especially where this is on greenfield sites. These windfall or development gains result from the increase in land values, as land for housing is worth up to 300 times more than agricultural land.”

Source: Government Barker Report

When purchasing land through us, you are buying the Freehold. This means you own the land outright, after completion you receive the title deeds to your plot(s) registered in your own name.

What are the risks?

There is a risk that your land may not be re-zoned for development for a few years, this would then mean that the rise in value will not increase dramatically. This is classed as a medium to long term investment. Only invest if you are financially able to.

Even if your land is not re-zoned you will still own the land, and the value should increase steadily. But, as with any investment, the value can go up or down. We try to limit the risks with our stringent selection criteria.

 

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