Investing in land
In the last twenty years the price of land has increased by a massive 800% and is one of the best, successful and more popular forms of investment. Traditionally investment in land was only available to the elite businesses and farmers and wealthy individuals, however today it is available for investment by normal income earners, “uklanddirectory.org.uk” is an example of a company that offers land to the masses. Land agents as they are called acquire land from sources and then sell it on to customers in the same sort of way an estate agent sells houses. Some land agents also specialise in selling land to long term land investors, this land is usually near to sites that are under going or about to under go development, so may soon see planning permission!
Land investment is very simple and transparent with no complicated matters to go through, and is there is a constant demand for it. For instance stocks and shares are not physical (you cant walk on them!) but land is a physical thing that you can see, also land values will almost always in on the rise due to the limited supply and large demand. After an invest in land is completed the new investor has control over maintenance, planning permission and sale of the land. Any investor wishing to buy, or invest in some land will obviously wish to see the land first and will wish to know everything they can possibly know about it before going any further. The location and physical qualities as well as timing, development costs, community attitudes and any recent farming losses will also have a big say as the value of the land. Let us help you find the perfect plot today!
Location is very important as to the future value of the land, so land that is near to a large motor way that connects two towns will almost certainly increase in value, usually the closer to a major road/highway a plot of land is the more value it is worth. The direction of growth is very important in deciding which plots of land are most valuable, so buying land in a neighbourhood that is to be developed on will provide mass profit to an investor, although the reverse is also true. Find out more about land
Once an individual has decided to purchase a plot of land he/she will need to consult a solicitor in order to draw up a contract, they will also enquire as to the possibility of any future developments that will affect the land, like if a large motorway is being considered to be built next to your new plot of land this will seriously affect its value.
Timing is key, in land investment as it is a long term investment as most land does not produce income as it is held; it is expected to increase as its value increases. A property developer will also have to pay out money for land after purchase for mortgage payments, property taxes and improvements to the land.
Many investors get around this by leasing the property in the meantime to tenant-farmers, or even as parking or used car lots, while they wait for it to increase in value over time. Let us help you find the perfect plot today!
For all UK land investor it is important to have a happy, healthy relationship with local community, and would be advisable to learn the local governing bodies’ political and legal attitudes. Plots of land for sale across England, Scotland and Wales are proving a popular investment due to the scarcity of land here in the UK.
Freehold land is increasingly difficult to obtain, and a rising population and increased need for more housing is pushing demand for this land ever higher. It is very clear to see why investing in plots of land here in the UK is becoming an increasingly popular alternative investment! Just take a look at the stock market!
The demand for all types of land is still extremely strong
Despite the credit crunch hitting almost every other sector of the English property market, demand for all types of land is still extremely strong, according to Knight Frank. Tuesday, 22 July 2008 Arabella Youens. County-by-county data collected by Knight Frank shows that pasture and arable land values have hit highs of £8,000 an acre in parts of England. Despite the credit crunch affecting other parts of the property market, agricultural land is still in demand from a variety of buyers.
Andrew Shirley, head of rural land research at Knight Frank, says: ‘What these figures show is the demand for all types of land in England is still extremely strong. The limited amount available to buy means the difference in price between top-quality and average soil is relatively small.
‘Despite the credit crunch that is affecting other property sectors, agricultural land is still in demand from a wide variety of buyers. There are a number of funds in the market prepared to pay premium prices for the few parcels of land they are able to buy.’ Taken from http://www.countrylife.co.uk
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