If you want a shot at becoming wealthy, you need to do more than simply earning money.
Land Banking has become a way to expand an existing investment portfolio or get the property market; however, there are some things you should be aware of before you hand over your money. Here we explain how land banking works and the pros and cons you take with this type of investment. Whether to place your money in a land banking proposition.
Before I proceed let me quickly Define the word Land Banking in simple terms
What is Land Banking Investment?
Land banking is an act of investing a fixed amount of money for a period of time and enjoy high returns on investment.
Investing is an act of putting funds to work and generate passive income and that’s why we have designed an investment package that best suit your needs with a specific time frame.
Think about it… you can buy a piece of vacant land today, walk away from it for 10 years and when you come back, nothing will have changed no need for any repair, which makes it even more better than some investments.
Now let’s go to the advantages & Disadvantages of Land banking
Advantages Of Land Banking:
Land Appreciates Fast
It’s often said that land appreciates while buildings depreciate and require maintenance, and this is by and large true, so it is vital to invest where there is a massive and growing demand for a limited supply of land.
You can Grow Your Returns Easily
This is where the seller finances the deal at 3% and you can find a buyer who pays you 6% at a slightly higher purchase price. Because many banks will not lend on vacant land, you can make this an interesting prospect for any potential buyer and make the difference as your profit, as ‘easy money’ financing on land is quite difficult.
It’s not expensive to own and maintain land
Unlike residential properties where you have to service the monthly mortgage payments regardless of whether the property is occupied, keep the tenant happy, ensure all the gas safety checks are up-to-date, find a tenant and all the other fun and games which are required when successful managing and letting out a property, with vacant land, if you want a ‘park-and-forget’ strategy, this could be the exact wealth vehicle that you’re looking for.
Land Banking Value
By obtaining property development approvals you can add substantial value to a site. Once you obtain a development approval for subdivision or for multiple dwellings, apartments or townhouses, you’ve taken out one element of the property development risk — the council approval process.This makes your site more attractive to developers who may be prepared to pay a premium for it and it gives you the option of selling for a profit, or refinancing and continuing with the property development process.
Disadvantages of land Banking
Some land banking schemes have option agreements with a ‘sunset clause’ that is triggered 20 or 25 years from the date of the agreement if the land fails to be rezoned or developed. If this occurs, investors may lose the initial option fee they paid if there’s not enough money to repay all option holders. When investors enter into an option agreement they may also have to pay legal fees, commission payments and payments to the development company that may not be refunded if a sunset clause is triggered.
Failure to get developmental approval
In a land banking scheme, the worth of your unit depends on future zoning changes and the consequent demand. Sadly, there is no guarantee that the land will get council approval for development in the future or not. If the land you are buying is rural farming land, there is no surety that it would be rezoned to residential land. Thus, when you invest in a land banking scheme, there are chances that you end up with a dud piece of land that you are unable to build upon or resell for profit.
For our investors out there thinking on keying into this investment option here’s our proposition;
How it Works
Christal Land Banking & Investment Plan
Type of Investment: Land banking
Investment Managers: Christal Land banking Limited
Initial Investment Amount: 500,000
Security Deposits: Land worth invested amount in any of christal Home Estate
Duration of investment: 6Months and 12Months Plan
Returns on Investment: 6% to 80%
Think of it
Why tie your money to a bank deposit for a long time and little interest
Why should you be doing It
When you can have double to triple of that interest doing our Land Banking Investment
High Investment returns
Fuel your investment with CLIP earn as high as 30% on your principal Investment.
For Further Inquiries contact us on +2349093236856