Sunday, 22 April 2012

Land Investment – The Basics

Land Investment – The Basics

There are currently several factors that are creating a prime environment for land investment.
Increasing population, Scotland’s vibrant economy and the thriving house building industry has led to a climate where an investment in land just now will lead to an increase in land prices in the coming years.

The chronic affordable housing shortfall in Scotland and the need to significantly increase house building will require significant land releases and increased home building rates demonstrating that Scotland is a prime location to invest in land. Local Development Plans aiming to develop new communities and have urban expansion over the next 20 years means that there will be a search for residential sites suitable for residential development. There has not been a better time for land investment as long as it is professionally assessed and sites have legitimacy in planning terms.

Land can be a cheap method of investment; there are no complicated concepts that purchasers need to understand, just that there is an ever-increasing demand for land in the UK due to housing shortages.
If interested in investing land closer to existing housing developments can carry a higher price, up to tens or hundreds or thousands of pounds per acre, but can be a wise investment as they also have a higher probability of substantial rewards; being built near to existing developments increases the likelihood of gaining planning permission for the site, which if successful will cause the value of the land to skyrocket.

Finding investable land depends on what you are looking for, and that depends on the level of risk you can afford. It is advised to seek advise from a land investment company and a solicitor.

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