Land Investment – How to Identify Good Parcels of Land

Land Investment – How to Identify Good Parcels of Land

Two initial questions that arise when considering purchasing land are ‘What Type of Land?’ and ‘Where to Buy’. There are many different parcels of land that have differing potential uses which will affect what you can do with that land or what type of future buyer will be interested in it.

Review the current and planned zoning. Each council has a town plan and land zoning. From the council’s town plan you can see what is acceptable development for each of the different zones. Land that is currently zoned as Residential would not be suitable for an Industrial development. This is fairly obvious, however also be aware that there is multiple types of residential zoning which impacts on the allowable property size, number of stories and so forth. Each council will and does have its differences. Some older suburbs have limits placed on the developments so that the character of the area is maintained. This may mean having enough tree coverage on a property and limiting the number of stories.

Where can you find the land zoning information? The government provides zoning maps, allowing you to select a street or suburb to see what zoning is in place. Councils provide very valuable information regarding the land and development opportunities. So when reviewing land, you will need to find out what the Planning and Development regulations are within the council area. You can find the council Planning Scheme, Neighborhood Character studies, permits and fee details, planning register – so you can see what other people have been doing in the area, subdivision and environmental regulations. Without adhering to all these rules and regulations you will not get approval to develop the land. Even if you are only considering purchasing the land as a buy and hold strategy keep in mind that the person or company that you pass this land over to will need to comply with council regulations. So it is important to carry out your due diligence in order to know that there will not be any significant issues blocking development – such as the property being in a flood zone, which prohibits residential development.

How is the Stock Market Connected to Land Investing?

How is the Stock Market Connected to Land Investing?

Let’s first admit that most of today’s investment portfolios can be traced in some form to the stock market. I was with some friends yesterday and everyone lamented they took a big hit over the past year resulting in steep declines in their personal investment portfolios. Also I was talking with a business owner whose business CD came due and when he went to roll it over he could only find a short term deal that paid slightly more than 1% interest.

So what does all this have to do with land? Traditionally when returns decline in traditional investment outlets, investors start to look for investment opportunities outside normal channels. For instance, some have turned toward gold as an option. Now many are turning to buy land as a safe haven for their funds.

Let me give you an example. I first cut my teeth on land investing in 2004 in the North Florida area. I was associated with a real estate firm that all they did was broker land. In early 2005 the office was receiving a phone inquiry every 15 MINUTES! In fact, the office could not keep pace with enough land parcels to service the demand (who were ready to pay with cash).

Why was there such an influx of activity to buy land? I asked this question at that time to many perspective buyers. About 80% of them were looking for an investment option outside the stock market. If you remember, the stock market returns were flat for much of 2003 and 2004. So some investors were growing impatient with returns there and begin to research other creative investment options. In fact, the Miami Herald wrote a story about this in 2004. They stated that one of those creative options was to invest in land and suggested North Florida is where someone should invest. After that article, the land brokerage was surprised to experience a flurry of activity.

Conclusion: Stock market returns flat – investors seek other investment outlets.

The question now is: If most investors have currently lost money in the stock market are they going to search out other places outside the stock market to invest in? Absolutely!

So if you are going to invest in land, strike while prices are still low. Because when land investing becomes more mainstream as it was in Florida in 2004 and 2005 as some point there won’t be enough affordable parcels of land available to meet the demand.

Learn how to develop a competitive edge as a real estate investor by applying the principles Russell Ward writes about in his Home Study Course, Vacant Land Guide – How to Buy Vacant Land at Wholesale Prices. The turn-key program teaches how to make $5K to $10K per month quick turning small parcels of land and $50K to $100K per deal on larger tracts of land in just 10-15 hours per week!

Buy Land – Investment

Buy Land – Investment

Buying land can be seen as a stagnant investment by few. However, if you compare investing in land with other investments that you want to make, you will know that investing in land is one of the best decisions you have made in your life. Also, it is a safe investment.

Buying land as an investment requires a deep understanding of the growth potential of the place you buy in. Buying next to a highway will be excellent. However, are you buying land in a saturated market? Or are you buying land in a growing market? Many of us may know the I-635 and I-75 highway flyovers under construction. In the same way, when you buy land, you should see the proposals of growth for highways and infrastructure projects. Study the trends in business growth and migration. Taxation policy for businesses may be something you want to observe.

Land is an excellent investment. Not only does it ensure security, it also ensures growth. It maximizes utility and has a greater return on investment than stocks or a Certificate of Deposit (CD). Should you want to build a house on your land, you can do so. You can sell it to a developer should there be an increase in demand for the property due to mobility of workforce or people into the area.

Let us examine investment in land by looking at a few other investment options. If you buy a CD, the return on investment can be lower than the inflation rate. So, you may be basically losing money by investing in a CD. It may be better to pay more money to your payment and ensure that it applies to the principal. Now, regarding investing in stocks, there are very few stocks that perform exceedingly well. Many stocks under perform or do not give the return on investment that one hopes for. Unless you invest in a startup with excellent growth potential, it is unlikely to have a return on investment that is more than the return on investment on a land investment.

If you consider the ratio of land/person, the ratio shows that the land per person is reducing every day. Population growth in the last century outgrew the population growth in the century preceding it. Land is limited in supply. So, it is valuable and ensures a better return on your investment. Even if it loses value, you will have the property and slowly it will regain its value. With all the reasons listed above, buying land is an excellent investment.

Land Investment the Best Opportunity at All Times

Land Investment the Best Opportunity at All Times

Land investment is growing in recognition because of the returns it provides to its investors. Big chunks of land are most probable to be granted permit for housing and commercial development in the long term. This realization has encouraged real estate firms and individuals alike to add investment in real estate to their investment portfolio.

While absolutely nothing is assured, cautiously selected land could be a superb investment. Here’s the way it functions for personal investors:

A real estate investor firm researches land that has the highest probability of development

They buy the land when it does not have any permission for development either housing or commercial

The land is demarcated into compact sites Personal investors purchase sites of land for a very meager amount

Once purchased the investor has freehold ownership with his name mentioned on the sale deeds

Investor can promote the land whenever he or she feels like

Land will most likely improve in worth with the passage of time

Land will considerably improve in worth when ever the permit for development is sanctioned

The relative inexpensiveness of such land implies that it’s now a golden investment chance for personal investors. The land is usually purchased with out any permission for housing or commercial development, that is why it’s less expensive. Although this does not ensure that the earnings from such a investment will be considerably high. The real estate firm generally researches the region such as the numbers of new homes required and also the availability of other land around the proposed land of purchase prior to selecting which land to purchase. What this means is the real estate firm won’t purchase land unless of course it’s extremely certain that it will likely be granted permit for development at a later stage.

A prudent investor might place the cash gained by their initial “land deal” and purchase new sites of land. Such investment really is medium-term, so the returns are available in 5 to 10 years. What this means is that with cautious planning, you can re-invest your earnings right into a variety of land sites, generating much more cash when permissions are sanctioned. For the investor this is truly valuable as they are able to resale at a valuable price or are able to invest their equity into additional properties. Real estate investments have made millionaires out of people and they continue to be one of the best investments in the nation.

Land Profit Generator – Virtual Land Investing Strategies

Land Profit Generator – Virtual Land Investing Strategies

Have you ever wondered if it could be possible to buy and sell vacant land or raw land from the comfort of your own home? This article will help you discover the reality of virtual land investing deals.

First let us define what we mean by Virtual Land Investing. It is investing in real property using internet based applications to locate land leads, locate buyers, and put together the transaction.

Virtual land investing can involve social networking sites such as Facebook, MySpace, Ning, and several other  similar community web sites. For example on Facebook you can create your own group to attract people who are interested in this type of investing.

You can develop your social relationship with the followers of your group by providing useful information specific to land investing. This can be as simple as sharing some of your own research or journey to becoming a successful land investor.

It can be extremely useful for this purpose as well to create your own blog with a vacant land investing theme and focus. Once you have designed a flow of new leads that you can generate automatically online on websites like Twitter and Facebook and dozens of others, you can outsource many of the maintenance tasks for these properties.

Yes, any of the groups, blogs and social networking profiles you generate are commonly referred to as Web 2.0 “properties” – so virtual property investing can have a multi-facetted meaning here!

With regards to outsourcing, you will find that many providers for social network maintenance tasks are readily available at extremely low rates. You can find them even on the social networking sites, or go to outsourcing web sites such as elance.com or guru.com. When you understand how to set up the system, you can easily direct virtual assistants in foreign countries to do the work for you.

The new Land Profit Generator by Jack Bosch is designed specifically with the perspective of outsourcing and social networking in mind. Many folks are excited about social networking. If you can bridge the information gap and provide sources of real land investing deals that you learn in the Land Profit Generator, you can boost your virtual investing business very quickly to being extremely profitable.

Land Investment in the UK – Eight Things Smart Investors Know

Land Investment in the UK – Eight Things Smart Investors Know

UK land represents some of the best investment land available. These eight facts, presented by a land planning and land investment expert, will tell you what wise investors already know about investing in land

1) Investing in UK Land is a real asset

You can see, use, and most importantly, build on investment land. You hold the legal title deeds to your investment land as surety. There are no complicated concepts in land investment, just a burgeoning demand for a finite amount of UK land.

2) Investing in Land yields strong returns

A finite supply of UK land partially explains its historically rising value, and implies it is unlikely to depreciate. Mark Twain said, “If something is unable to be manufactured and the underlying demand for it is constant, then its value will tend to rise.” Demand for UK land is, at the very least, constant. The property market increases reflect soaring demand for houses from an ever-growing population. Therefore, investing in UK land offers strong returns. It is reasonable to achieve the equivalent of 30-35% annually in a 5-year land investment project. This equates to compounded returns of around 400-450%. Such returns are hard to realise with other UK investments.

3) Land Investment is an investment in “the real world”

The value of property assets is clear and transparent. This is not the case with all UK investments, such as derivatives. Even with traditional equity investments, the average investor rarely knows whether the equity is genuinely under-valued (buy signal) or over-priced (sell signal).

Stock market scandals resulting from accounting malpractice highlight the limitations of the average investor’s understanding of their exposures. UK land investors are usually already active players as homeowners, so they already have some market experience.

4) UK Land has a lower entry point compared with buy to let

The price tag on a typical UK property is around £200,000. A plot of UK investment land that offers substantially larger relative returns is priced at just around £10,000! Remember that the Iron Law of Investment is diversification, commonly known as “Don’t put all of your eggs in one basket.” Because land investment has a significantly lower entry level than property, wise investors can more easily practice the Iron Law.

A typical UK investment requires around £200,000 but a diversified land investment portfolio could be created for less than £50,000! Investing in land, with its lower entry point, therefore gives the investor more ‘chances’ to pick a lucrative UK investment. However, it is by no means essential to build a huge portfolio of land investments: the key considerations for anyone considering investing in land are two-fold: choosing good quality UK land, and choosing a good land investment provider. The 12 Land Investment Guidelines, located at http://www.land-investment-uk.com/homepage/index.html will help you make these two choices.

5) Investing in Land capitalises on UK’s housing crisis

Investing in land is the most lucrative means of capitalising the UK’s housing crisis. Supply pressure is being felt in both affluent and less affluent areas up and down the country. The number of UK council homes has fallen sharply over the past 25 years, while homes rented from social landlords has increased dramatically, and owner occupation has doubled.

The combined effects of the above factors make investing in land a sensible choice when allocating assets in a UK investment portfolio.

6) Investing in land is passive and hassle-free

All UK investments demand careful consideration when entering and exiting the investment. However, some UK investments also demand active management during the life of the investment (e.g. equity and commodities trading). Land investment, on the other hand, is entirely passive, which makes it popular with many investors. Investment land is easily managed and investors should be fully apprised of their investment progress.

7) Land Investment has low volatility of returns

Volatility of land investment returns is an important consideration. It refers to the extent to which the value of the investment rises and falls in its lifetime. Less volatility makes it easier for the investor to know their wealth at any given time.

UK Land investing is not volatile and is actually relatively predictable. The value of a land investment tends to follow a linear path: in a 4-5 year project, the value of the land investment in years 0-3 will tend to rise relatively modestly by the effect of ‘organic growth’, (what we commonly term ‘inflation’). The land investment typically rises sharply in value during years 4-5 (should permission to build on the land be achieved). The land investment may be divested of at this time for maximum profit.

The wise investor knows that they can more easily estimate the future value of their portfolio with land investments than with other asset classes. The land investor can plan for critical future funding requirements such as school and university fees, retirement planning, and healthcare expenses. More concrete future planning may not be so easy if the investor has exposures that are more volatile than investing in land.

8) Investing in land creates real wealth by compounding returns

As we have seen, returns of 400-500% in a 4-5 year project cycle are entirely possible if an investor chooses good UK land and an experienced land investment provider. Therefore, an initial investment of £10,000 could grow to £50,000. If these returns are then reinvested into another land investment project with comparable returns, then the initial land investment could grow from £10,000 to £250,000.

Some of the most successful individuals are enjoying the financial benefits from compounding in land investment. This approach requires a slightly longer-term view, but the rewards are significant. Compounding in land investment can offer more than just good investment returns: it can create very substantial wealth!

Leonard Montgomery is a Land Planning and Land Investment expert based in the UK. He enjoys sharing his expertise with common men and women to help them avoid the pitfalls of land investment and land planning that he experienced first-hand.

Land Investments – Real Estate Investing It Is Work

If you think that it’s too soon to start thinking about retirement as soon as
you begin working, then think again. There are several reasons why it is never
too soon. For one, people are now healthier than ever before, which translates
into living longer and thus, living longer in retirement. Many people in
retirement want to travel, buy a new home and have extra money to spend.
Planning ahead to save money for your retirement years makes a lot of sense. But
given all the options that exist for planning for the future, how do you know
which one is best? One great solution is investing in land.

My wife and I bought a cozy little house after we were married, along with an
empty lot that was next to it. We thought that the lot might be a good land
investment. Shortly thereafter we decided to sell the house, but we held onto
the land investment with the idea of possibly building on it in the future. We
kept it for a number of years, since the taxes were so low. After a few more
years we had a call from the owners of our previous house. They wanted to buy
the additional land. Having decided that we would not build there after all, we
had the land appraised. We were thrilled to find out that our land investment
had gone way up in value and we happily sold it at a nice profit.

We took the profit and put some of it in an IRA, and with the rest of it we
bought some hunting land near a community that was experiencing a nice growth.
The land purchase proved to be a good move because not too long after we bought
it, a land developer who wanted to build a housing development bought from us.
Once again, we made a substantial profit and my wife invested in a large parcel of
hunting land along with her brothers. Not only is it great for hunting, but it
is also a great investment that can later be divided and sold as individual lots
for future development.

Investing in land has many advantages. Remember, there is only a limited amount
of land to go around. In a growing area you can see a profit rather quickly and,
especially when it is undeveloped, taxes are really low. No maintenance is
required and it is unaffected by the stock market.

5 Reasons Why Land Investment is a Must

5 Reasons Why Land Investment is a Must

For anyone who is seeking to invest their money there are many different options that are currently available. Many people will take to the more traditional forms of investments such as stocks and bonds. Yet there is one investment that has remained fairly stable throughout the years and has survived the upswings and down swings of the economy and the real estate market and that is land. There are those who believe that land investment is fairly risky but this can be greatly reduced or eliminated by making wise decisions. There are many who see land investment as an important part of any investment portfolio.

Here are five reasons why land investment could prove to be the greatest financial venture for you.

Very limited land space

Just imagine, what will happen if the earth grows bigger and land space starts growing-there will be no dearth of space for people to live in. But this is not the case, earth is not growing rather population is growing like never before and in the near future is expected to grow; expected growth until 2050, 8.9 billion. This will increase the demand and eventually the market value of land would skyrocket.

Many areas around North America are scantly populated which means there is an abundance of land down the road. Over time, their market value will increase, proving to be a worthy and profitable investment.

Hidden Secrets

Yes, you read it correctly, but be careful with this. If you could, by any chance, get hold of mineral rights with your purchase, then you become the sole owner of everything that is mined beneath the land or grown on top of it. You can raise timber above the ground and use the money either for profit or for paying taxes; market commodities like wheat or corn can even be grown. More so, you can raise cattle on a high-quality pasture land. All the said things are just snap shots of additional income that you can possibly make by owning land.

Let’s not overlook the potential that there can be profits and surprises under the ground as well. As mentioned above, there is a battery of possibilities and wealth with mineral rights, provided you get them. Mineral rights allow you to extract minerals or earn royalties from companies to which you have given the authority to mine the minerals.

Land: Easy to Acquire

Normally, purchasing land is simple and a quick process. Though easy to acquire, if you fall into the trap of not using a Realtor, all your money that you could possible save while purchasing the land may end up being used. So, if possible shop and purchase with the help of a Realtor. More so, look for the following points before you seal the deal:

Before entering into any sort of contractual agreement, make sure the seller has legal and clear title.

Do not pay the seller more than the appraisal.

Ensure that the land is out of any flood zone.

Survey the land properly.

Land: A tangible and concrete asset 

Unlike stocks and other types of paper assets, land falls into the category of a tangible asset, which cannot be stolen from you and will not depreciate with economic turmoil. This has made land investment one of the best and the safest form of investment known to date. Besides, land does not require any sort of maintenance and unlike a home, another tangible asset, it does not need to be insured. Would it not be great to have an asset that is looking after itself?

Managing Money and land

No doubt, there are those who think it is better to invest in traditional forms of investments like stocks, bonds, IRA’s, mutual funds and 401K’s. However, do not forget that the world economy is going through a very tough phase right now and many of these instruments have fallen dramatically in value.
However, with the current economy being on a back burner, Land investment is also feeling some heat, but it will surely comeback and with a bang too. Whatever the situation is, people will always need a place to live and that always requires land.

Land Investing

Land Investing

One area of investing that is sometime s overlooked when thinking about areas to invest money in is land. Investing in real estate, that is developed land with homes and buildings is one of the most popular types of investing. But, ask those who do some serious investing and you will find that many of them invest in undeveloped land. As our country grows there is an ever-increasing need for new homes and services and land is a definite requirement for this to happen.

Typically investing in land is not as popular as developed real estate because of the amount of work that must be put into it. However as the need for land escalates this is changing. If you consider the tracts of unused land around your town, someone has to own them right? There is likely a large amount of available land in your area that can be purchased relatively inexpensively. The idea with land investing is to hold on to it and sell to a developer in future years. However, keep in mind that investing in land takes a bit more knowledge and research than investing in homes. One of the most important aspects of investing in land is knowing the zoning of the land you are buying and whether or not that is likely to change in the future. The zoning will, of course dictate who will likely be interested in property in the long-term.

Buying land that is zoned for commercial use is highly sought-after, but the most attractive land is that which is zoned for both commercial and residential. This land can be hard to locate but it is worth the effort and investment of time. This is really the investment that you want to be holding when your town starts a real estate boom. It’s a vein of investing where a fortune can be made overnight if the demand is high. Don’t forget to do your homework first. Educate yourself on the land that is available and the real estate trends in your town so you can make an educated guess at which way the industry is heading.

For Beginners – Three Common Sense Tips For Making Intelligent Land Investment Decisions

For Beginners – Three Common Sense Tips For Making Intelligent Land Investment Decisions

You have probably heard by now that the real estate market is plummeting. It seems that even the priciest, most coveted of buildings are being undermined in cost all the time-much to the dismay of those who have made their living off of this usually rather predictable and lucrative market. There is an old saying that it is never a good idea to put all of your eggs into one basket, and this holds true when it comes to investing in property as well. Investing in undeveloped property, raw land is one thing that many people have not thought to get into and it has proven to be rather lucrative as of late. It can be used for anything, it can be flipped, and there is an unlimited amount of it available at all times. These things certainly cannot be said about commercial or residential real estate, now can they?

For those out there who are new to the land purchasing side of investment ventures, it may be necessary to find a little bit of help. Investing in anything is not something that is ever a good idea to go into blindly, and it always helps to do a bit of thorough research before really taking the plunge. To help those amateur land investors or those looking for a little bit of help, take into consideration the following three tips for making intelligent land investment decisions.

Start Small and Work Your Way Up

This may be one of the single most important pieces of advice that a potential land investor can take into consideration. When people are on the search for wealth, rarely do they slow down and take the time to absorb things as they go. Starting small can help to ensure that the mistakes you make are small; the more comfortable you get with the land investment world the bigger you can go. This does nothing but ensure that not only are you taking the right steps at the right time, but that those inevitable mistakes that you make along the way don’t set you back more than you can realistically afford.

Spread the Risk and Spread the Wealth

One of the reasons that many people choose to go into land or property investment without a partner is due to pure selfishness; they want to reap the profits on their own. While there is certainly nothing wrong with that, this is the type of thing that can really only apply when it comes to those with more experience. When you go into this type of investment alone you do stand to reap all of the benefits as far as profit are concerned, but what about risk? Sharing the wealth in the beginning may keep you from experiencing some unrecoverable financial pitfalls as well.

Diversify Your Investment Portfolio

Some beginning land investors make the mistake of thinking all land investment opportunities were created equally. Land is land, right? Well, not exactly. There are vacant lots in neighborhoods. There are acres in rolling country sides. There are tracts of land on a beach. There are forested areas. There are dirt lots in the middle of downtown. Don’t stick to one type of land investment. The more you diversify the more you stand to profit and learn something in the process.

Beginner’s Investing 411 – How to Know If a Potential Land Investment is Right For You

Beginner’s Investing 411 – How to Know If a Potential Land Investment is Right For You

They say that land investing is a gold mine. Land is a resource that so many lucrative investors have failed to tap into, paying closer attention to things like real estate, stocks, and bonds. While these are all well and fine nobody ever gained wealth pursuing one avenue, and that is where land investment comes into play. Investing in land can be tricky business though, especially for those who are just starting out in the world of investing-whether it is land investing or investments period.

Part of the trick is knowing when to say no, and understanding that not every investment has good return potential. The only problem with this is understanding when a potential land investment is right for you and when it may be best to keep it moving.

You Got a Great Deal on a Tract of Land

Investment is about spending money to take money, but not going broke and hoping and praying to see some return. You have to be smart about your investment. If you got a great deal on a plot of land through an inside tip, a desperate seller or some other luck of the draw go for it-so long as it will be sell able or usable by you in the short run.

You’re Positive You Can Make it Work

If you are positive that you can make something work, by all means go for it. Part of being a good investor is about trusting yourself to do the right thing, and while you may not always be right it is helpful to learn to trust your own instinct-especially if it has proven you right before. If you have an inside tip on a piece of land and you are fairly certain that you will be able to utilize it to your profit, go for it. Unless you have some reason not to take the leap, the alternative is to sit around and wonder if you could have made it work, and that won’t make you a single dollar.

You Have Done it Before

Just because you have seen something done doesn’t mean that you can duplicate it. If you have had success with a certain system, a certain seller or buyer, a certain type of land or anything else in the past the chances of you being able to succeed through duplication are much higher, substantially lowering your risk. Duplication is the best strategy of them all, and if you find something that works stick with it.

Because Investment is About Risk

If all else fails, don’t forget that investment carries with it a slight risk of loss. Don’t take this to mean that you should do something that you have second thoughts about because investment is risky, anyway. Always trust your gut. It is important to understand, however, that investing in land is no more of a sure thing than investing in some Fortune 500 company. Something could happen any day that could change the world and the quality of your investment as well.

Land Investments UK

Land Investments UK

Investors world over have taken Land Investments, UK in a big way because investing in plots of land for sale is simple and hassle free as compared to buying a property. Now people know that investments in property incur high maintenance costs before they see any actual returns, whereas, land investments require a much smaller outlay, involves too little or no maintenance costs at all and may remain untouched yet still experience considerable rises in value, and once planning permission is permitted, the returns are as much as 300%.

The concept of Land Investments in UK is proving to be a popular investment choice because of the scarcity of land and rising population & increased need for more housing that is pushing demand for land investments in UK ever higher.

Although land in the UK is being protected from development for many years, but now the local and state governments are accepting that the requirements for new housing and development is so great that it is unrealistic to keep many of these restrictions in place.

Tony Blair once pointed out that the demand for new homes is so great that it would be irresponsible to rule out specific tracts of land for development and that there is a requirement for additional housing, and if decisions weren’t faced on that, the people who will suffer will be generations to come, particularly first-time buyers. Thus, keeping the land & housing scenario of UK in view, investors are inclined for investing more in land than any other alternative option like stocks and equity investments.