Land Investment

Ask most people where they'd put their money if they had a cash windfall and you would hear the words "property investment" an awful lot. Not all of us have had a windfall so how about land investment - the cheaper alternative?

A Halifax survey has shown that rising property prices and a shortage of residential land has caused land prices to increase 8-fold over the last 20 years (source: Finance Search).

Being able to obtain the financial benefits from long term property investment traditionally required many tens of thousands of pounds to purchase a flat or house.

Land provides the returns associated with property but with a smaller initial investment. Investment property has been proved to be a high return investment in the long term.

A residential sized plot of land for sale in the South East of England, close to existing development can currently be purchased for around £15,000. Semi-detached houses in the South East of England can easily cost £250,000.

Land values generally move in the same way that brick and mortar properties do - which makes land an easy to understand long term investment. Unlike the stock market a land investor need not worry about the day to day ups and downs or the effects of mergers and so on.

The Government is working towards building over 100,000 homes in the South East alone. Land available for development is already at a premium and is sure to reduce over time. This makes for a strong supply and demand scenario.

Of course what you do with your land is your choice - it is flexible. You can use it for your leisure and enjoy until you have seen the returns you hope for.

There are a range of land agents that deal specifically in this type of land. Investment land is primarily next to development in areas earmarked for expansion and development and is sold without planning permission. This allows for a high return on your investment should you gain planning permission on your land. Of course, as with any investment, land is not without risk.

Investing in Land