Uk Land Investment Upto 400% return,any opinions

[propertyinvest]

Hi All

I have been looking for a while now , at first i didnt really understand the concept, but it there are several companies that buy Land that has a high chance of getting planning, the project i invested £19,000 has just been given planning has risen by 300% within 4 months, has anyone else bought land , or if you are thinking about it i would be glad to help, here is some info

BBC - Action Network - Darsdale Farm Action Group vs Taylor Woodrow


West Northamptonshire Development Corporation


Why Land?

The Value of land across the U.K. has risen over 900% in last 20 years. Even without planning permission, English farmlamd has increased 14% in value over the past year. The government have put in place plans for over 3 million new housing devlopments over the next 20 years due to the very worrying housing shortage. These homes will be built on greenbelt, brownfield, and greenfield land. If the land that you own falls in to any of these categories, and is in an area that has an acute housing shortage, then you as an investor stand to gain extraordinary returns on your investment.

Key Facts


Land is a finite resource, Its a tangible asset.

No inheritance Tax.

Recent surveys show that investment land has outperformed stocks and shares for each of the last 5 years and is one of the most popular forms of investment by private individuals.

English farmland has increased 14% over the past year.




A comprehensive analysis projects an increase of 3.5 million households by 2021, or 175,000 extra households per year.
Housing experts claim that house-building needs to increase by 33% from the current 154,000 a year to 220,000 a year to meet the rising demand, or the country faces spiraling homelessness and overcrowding. If building levels remain as they are there will be a shortfall of 1.4 million homes in 15 years. About 160,000 houses were built in 1950, rising to 291,000 in 1970. But this fell gradually to 135,000 in 2000, increasing only last year to more than 150,000.

The predicted explosion in households is due mainly to more people remaining single, rising divorce rates and older people living on their own rather than in nursing homes. However, nearly a quarter of the new households are due to increases in immigration. There has never been a better time to buy land.


Source: The Times Online

[sqftmag]

Well it all sounds jolly doesn't it? The reality is that land investment companies have duped a lot of investors of late - many sell land which has NO potential to get planning permission.
The farmlands of which you speak are usually heavily protected - even the landowners can build no dwellings there unless it can be proved they are to be lived in by farm workers.
I never recommend land investment to my readers, instead I suggest that they invest in bricks and mortar in areas with proven regeneration plans. As with most purchases - caveat emptor!

[Gerry Pridham]

Hi,

I agree with Michele. I am a pretty risk-averse investor, buying only second market UK residential property. Having said that, my wife is even more risk averse, but she has bought land (five times) in Syria. It is, after all, her country of domicile. What I don't like about land is that there is no obvious exit strategy. If you think property is illiquid, it's like water compared with land.

Now here's some interesting anecdotal facts, just to show that there is never one "most clever" solution.

My wife sold her first land investment after 2 1/2 years for a 100% return (about 80% return after all costs). She has negotiated the sale of her second land investment for a 120% return after 20 months (but sale not concluded yet).

Here's an even more extreme example. We have a friend who's father bought around 10,000 sq m of land nearly 20 years ago for US$0.20 per sq m. Over the years, they have hand-built a summer home on one tenth of this plot. Three years ago, building exploded in that area, and they were offered $10 per sq m (50 times their investment). They don't need the money, so kept the land. It's now $30 per sq m, and rising by the day. Now that's what I call a good return on investment. They didn't need the money when they bought, and they don't need it now, but a great legacy for the children.

[propertyforum]

I I agree with Michele with too.

[mkellerman]

Land doesn;t give you cashflow (I assume).

[sha-sl]

That's really an good idea to invest on land , you can get returns but not in short span of time. A minimum of 12 months is required you to get good returns as much as 40% you can get after 12 months possibly you can even get much more and better returns on your investiemnts if everything goes well ans works well.