With the right knowledge and experience at their disposal, investing in land can be highly lucrative for real estate investors. At the very least, those interested in buying land are only limited by their imagination and zoning regulations. Continue reading to find out the key to successful strategic land investing.
What Is Strategic Land?
Strategic land (also known as Brownfield, Greenfield or Greenbelt) is a plot of raw land that has not been developed or prepared for construction; it’s a completely untouched territory. Despite an intrinsic lack of grading and subdividing for construction, raw land investing is becoming increasingly popular among real estate investors. But is buying land a good investment for everyone? The answer depends on what an investor may want out of a respective deal.
For some, raw land investing may sound scary because of the unknown. Likewise, investing in land requires more patience and a penchant for long-term strategies.
Does Land Appreciate?
Strategic land is an appreciating asset for couple of reasons: limited supply and increasing demand. There is a limited amount of available land that hasn’t been built upon, making it a very attractive product in a world where the population is significantly increasing. Therefore, in accordance with the supply and demand economic principle, raw land will inherently increase in value as demand grows for the limited asset. It is no longer a question of whether or not land appreciates, but rather how much it will appreciate.
Benefits of Investing into Strategic Land
It goes without saying that risks and rewards always come along with any type of investment deal. That said, understanding how strategic land investment works will ultimately bring you success. The current conditions of the market, demand for housing, mortgage rates, the local economy, and new housing construction will all play a huge role in how you benefit from your land investment. But strategic land is called so for a reason. We specialize in carefully selected UK land in prime historical locations with potential to development due to especial population growth in those areas.
For investors, the advantages of strategic land investments are:
- Easy to purchase
- No taxes or maintenance fees
- Low entry investment
- 100% freehold
- Potential for quick profit
- Flexibility to build or hold
Even though the benefits of land investments are far and wide, they won’t be achieved without due diligence on the investor’s behalf. Luckily to our clients, we not only guide them throughout the whole process, but also help them to get planning permission.
Raw land issues we help you to avoid
Although there are many benefits for investors, there are some issues that may arise. Land use restrictions can dictate what a land owner can do with the land after planning permission is granted. It is important to mention that all our strategically chosen lands are preapproved by the County Council, but for residential use only.
Luckily, this is all information you can obtain before purchasing the property. It is crucial that investors mind their due diligence before purchasing any type of raw land investment.
What is Planning Permission?
Land is sold on the basis that it has a strategic importance. All of the lands that we market are chosen to meet the following criteria:
- It sits outside the settlement boundaries of a town or City, however, has a close proximity to it
- It is within the area of high housing demand due the growth of the population
- It doesn’t currently have planning permission, however has the potential for planning approval by the Local Authority of the County
So what is Planning Permission? It is a document that must be obtained from a local authority and that allows development or a change of use of land. This means that having it this land can be turned into residential development. With the right expertise.
We work with our Partners in the UK to promote the land to the relevant Council prior to a formal Planning Application.
Using our knowledge, experience and financial strength we work on your behalf to secure planning permission for your site (entirely at our cost)
Real estate investing inherently coincides with a certain degree of risk, and raw land investing is no exception. However, those who educate themselves on the topic can not only gain the confidence needed to begin, but also the expertise required to succeed. Learn how to LAND INVEST, book a consultation with one of our professionals, and determine how to proceed with the purchase as well as our aftersales service.
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