Many people interested in land banking investment are going to Canada to invest their money. Canada has few companies that offer
exposure to land banking investment. These companies purchased large quantities of raw land located in high population growth areas that they know it will be developed. They keep 10% to 15% of the land and sell the rest to potential investors, who each get a title deed.
The company then works with engineers and planners to get the land approved for building and developing. Once the land is ready to be developed, it is sold to the developers. Although this may often take several years for the value to be increased higher enough to warrant a profit, the investors usually walk away with a profit of 15% to 20%.
Canada is very popular place for investors interested in land banking. Certain parts of Canada, such as Alberta and Ontario, many acres of raw land is being bought up by companies offering land banking, with an almost guaranteed profit margin. In spite of the rising and falling markets, investors are still able to have guaranteed returns. The important thing to understand and realize about land banking is that the investors have got to be willing and able to “ride it out” and hold to the land until such time as they will get a nice profit.
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