Hello friend,
UK land investment has clarified that this area/site is in between Keston and New Addington so it can be referred to by both names.
I had forwarded them your questions and here is what they said, “Your comments are absolutely correct, Bromley is an affluent area where house prices are in excess of 250,000 GBP. Presently the land that we offer you is at the raw, undeveloped stage. Its future value once it is allocated for development will be in line with the property prices in the area. That is exactly what makes it a lucrative investment. You are entering at the raw stage and therefore you stand to gain when site gets allocated. It is with the same premise that UKLI Ltd retains up to 30% of each site for its own investment.
If from a house of 250,000 GBP you remove 100,000 GBP as the cost of the house, you are still left with a plot value of 150,000 GBP. £150,000 is the price of a plot with planning, and whilst this demonstrates a 1000% return on your outlay, a developer is unlikely to pay out quite so much; he will probably come in with a blanket price for a site where he is buying in bulk. So we further discount the price and can safely assume a conservative stance that you as an investor can expect the developer to pay you approximately 55000 – 60000 GBP for your plot.
Does the land have any form of planning premission for building, if not, all you own is a piece of land that you can do nothing with. That does not mean the value will not rise, but how much will it rise by.
“The above answers this question as well. In addition to the return you make once the site is allocated for development, I would like to point out that land values in the UK, rise by 10-12% per annum, regardless of development.”
This is an investment that will make you excellent returns, at the same time being a secure investment in a tangible asset that is always appreciating- land.
So what should be my next step?
Thanks for your kind help. Very much appreciated.
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