Property auction home >> Property Auction Articles >> 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
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.