If you’re at all interested in land banking investment, you’ve no doubt did some research as well. If you’ve done research, you know it’s a great idea. It’s ALWAYS a great idea to invest in land. Not only is it a tangible asset, unlike shares and bonds, but it’s a tangible asset that will not disappear and will not rely on the performance of other individuals or companies to increase in value.
Many people choose companies that specialize in land banking investment for help and investment opportunities. As reassuring as this may be to the novice, it’s even more important to do your research before investing. Specifically research the company that you’re relying on to represent you in your land banking investment. Do your due diligence; go to United States & Canada Better Business Bureau and make sure that they are a trustworthy and profitable company, in bad times as well as good times.
The best investment on earth, is earth
Land banking is NOT a new concept. In fact, it’s been around for many years. Many well known people like Donald Trump, the Mori family, the Rockefellers, Li-Ka Shing, and even in Malaysia – Penang, the late Tan Sri Loh Boon Siew have made solid and secure profits from land banking.
Not only do private individuals practice land banking but many large commercial companies often participate in land banking in areas where repossessed or dilapidated homes are located. These homes tend to depreciate the value of the entire neighborhood. When the value of the homes get low enough, many of these companies swoop in and purchase the properties with the intent of redeveloping them. When the value of the entire neighborhood goes up, they’re able to sell their investment with a huge profit.
Because of the constant trend land has to increase in value, land banking investment is a proven concept for making money. Unlike stocks and bonds which rely on the interest rates, land continues to increase in value. While it may occasionally decrease for a bit, it always comes back up. This is particularly true with large undeveloped land, especially large acreages.
While it may be worth a certain amount as a 20-acred parcel, its worth a lot more when broken into 20 1-acre parcels, ready to have homes built on them. As important as it is to buy the land, it’s even more important to know when to buy it.
Although land banking was traditionally reserved to the super rich (game of the rich and famous); today, with land banking companies, especially those from Canada, land ownership has been made affordable and within the means of ordinary folks.