Land Investment - an alternative to "buy to let"

The property market in Scotland has seen rapid growth over the last ten years but now appears to be cooling down. Properties and locations that were once viewed as undesirable have become more sought after than before as people looked to make profits from old fashioned elbow grease, that and filling a property with IKEA furniture. This according to the current media could be coming to an end with some gloom mongers predicting sharp drops in house prices.

Where in the past a number of people who couldn't raise a deposit for a mortgage were given 100% of the balance that they needed to secure a home, the lenders will likely now be more cautious with who they lend to. This will make it harder for first time buyers to get on the property ladder and will in the long run mean less houses being sold. This means that the buy to let market is looking more risky all the time.

There is an alternative to buy to let however. There is still a housing shortage in Scotland and the Scottish Executive is eager to green light future developments. Intelligent Land Investments are a Scottish company who purchase areas of land which they feel has potential for development. They sell shares of this land to the private investors. If the plot of land is granted planning permission the value of the land will increase substantially. That is when the land is sold to developers and investors see a return on their investment. There is a risk involved. If planning permission is not granted then there is no scope for a large return but the investor will still own shares in land which is surely going to be even more sought after in the future.