Land Investment - An Investors Guideline

Buying land in anticipation of urban development has been done for years by big business and has resulted in companies and the individuals at their helm amassing great wealth.Agricultural land on the outskirts of cities has long been a wise investment and developers snap this up years in advance of the town or city on which it borders catching the eye of urban developers.However, it has only been the last few years that companies have been set up to take this investment opportunity to the mass market. If done correctly, they will allow everyone to benefit from the opportunities available.

Land investment offers individuals the opportunity to reap significant returns on their investments and, with finance packages offered by most companies, they can do this for as little as £50 ($100) per week. In light of this, shareholders range from people choosing land investment as an alternative nest-egg for their pension to first time buyers using it as a way to get a first foot in the property market door.

Reflection of Risk

An investment of £12,000 in one share could lead to returns of about £50,000 to £60,000 in the next ten years or so, which outstrips most other investment opportunities. However, as always the level of return is reflected in the element of risk associated with the investment.With this in mind, it is imperative potential investors do their research on the different companies in the marketplace and only invest in those which are credible and offer realistic opportunity for returns.

Bad Reputation

To date, the land investment industry has not earned the most glowing of reputations, however there are reputable companies out there and they are well worth taking a look at.People looking for an alternative investment opportunity should not be concerned about taking a well educated risk. Well thought out share purchases could result in significant returns sooner than you think.

Valuable Guidance

It is the investor’s right to find out as much as possible about the land their money is going into, and while companies should be supplying investors with as much detail as possible, it is also worth doing some independent research. Land investment companies should encourage investors to do this, as speaking to planning departments will provide a clear indication of the local authorities view on individual plots.Land investment will always carry an element of risk, which is why the returns can be so high, and although a substantial return on investment can be anticipated it can never be guaranteed. Companies that do give guarantees are unlikely to deliver on their promise in the short, medium or long term. As the demand on housing stock continues to rise, the number of land investment companies is set to increase further. Most local authorities across the country will have plans for urban expansion and this is something the astute investor can use to their advantage.

IlandI – are a UK based FSA registered Land Investment Company.

Paul Steven is a SEO Consultant with 360innovate a Search Engine Optimisation Company based in Glasgow, Scotland.