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Advantages of Land

The gamble here is that speculative land investment in plots without planning permission in areas of high housing need is done with the longer term view in mind and the hope and belief that planning permission will be granted in years to come Having gained planning permission the land may then increase in valuelO over So a cool head and a rational approach are vital

Promoters of land speculation often tell you. "You don't, wait to land, you buy land and wait."
To this end there is a lot of activity from land agents particular across South East England. They specialise in land for sale close to existing housing that has been identified as having a good medium to long-term chance of gaining planning permission for residential housing.

Residential-sized plots of land for sale are then offered to the public allowing them to share in possible future development gains and. with the dotcom crash and the recent accounting scandals, the simplicity and transparency of investment, building plots for sale has gained many followers.

There are no complicated concepts that investors need to understand with land, just that there is an ever-increasing demand for building and for sale and a restricted supply of plots for sale.

The Advantages Are:

• Land is real
• Unlike shares land is tangible it can be visited, seen and walked on
• There is a limited supply on land.
• England is a small country with the majority of the population wanting to live in the South East
• It is easy to understand and seen as a solid investment.
• Land is not open to accounting scandals and it is clear when property prices are going up (or down) and the reason for this movement
• It is a cheap way to invest in property
• A semi-detached house in the South East of England can easily cost £250,000 A residential-sized plot of land in the South East of England, close to existing residential homes, can be bought from around £15,000.

Land Increases In Value In Two Ways

By increasing property values (due to demand outstripping supply) By land gaining permission to have houses built on it. For example, a £15,000 plot of land in the South East that gains planning permission to build a four Dedroomed detached house on would then be worth in the region of £200,000 to a builder wanting to put a £600,000 house on the land.

it is, therefore easy to see why land speculation is the new Klondike. The potential returns outstrip any other investment by miles But like all these 'too good to be true' deals you need to approach the business with a cool head.