If there has ever been a time to look for new ways to invest, this is it. The world economy is in turmoil, the real estate markets are plummeting, as are the stock market and other investment vehicles. People are losing their jobs, their savings, their health, and even, sadly, their lives.
But there are others still doing well, whose assets continue to grow. People are still buying houses and cars and clothes and trinkets and college educations for their children. Someone’s doing well out there. Maybe, if you read this article, you might be turned onto a new way of doing things investment-wise. That way is land banking.
If you’re familiar with land banking investment and all they entail, you know what the hype is all about and what you have to gain from this wonderful and lucrative venture. If you’re still unfamiliar with land banking investment, boy, are you in for a learning experience?!
What is Land Banking Investment?
Land banking refers to purchasing land not for your own use, but with the intention of hanging on to it until it will make you a profit when sold — the profit being anything above and beyond what you paid for it when you bought it. Real estate and land is becoming a hot commodity and very popular as an investment, even more so than stocks and bonds. The fact that is a tangible asset only adds to its appeal for potential investors. Land banking investment is taking place all over the globe, with many firms established with the sole purpose of providing these types of investment opportunities.
Although any land (at a decent price) may be considered a great land banking investment, your better option is in buying undeveloped land that you know will increase in value due to its potential for growth. A perfect example of a good land banking investment is land that’s in an area where they may be a major highway built or a major growth in urban development. When the area surrounding the land becomes busier, the value of the land increases. Many investors purchase land where they know developers will be constructing homes in the near future. The value of the land changes because its status changes from vacant land to a potential location for development.
Is Now A Right Time For Land Banking?
Land has always been a great investment, regardless of what shape the economy has been in. The reason behind this theory is because real estate and land values always go up over time. Properties may tend to drop in value during hard times but they always come back up even higher than before the hard times. It may take awhile but they consistently increase in value.
Now is the perfect time to make land banking investment because real estate and the home market took a hard time financially the past few years due to the struggling economy. We’ve been hearing that things have got to look up because they can’t get much worse. Yet, we’ve also been hearing constantly on the news that the country, as a whole, can expect economy to get a little worse before things begin to look up again. The key here is “looking up again”. With economy at an almost all-time low, land values are way down, making it the-perfect time to invest in land. When the economy picks up, as it always does, the value of the land will also increase. Here comes your profit!