Land Banking: Why you should Invest Now

August 15, 2022by REDOC0

 

Land Banking is a goldmine and untapped treasure that investors overlooked and neglected, in favor of other traditional real estate investments like residential, commercial, and industrial investment strategies.

According to findings land banking has been in existence for over 500 years. But due to the present reality of things, with high inflation and the high cost of other investment strategies, a lot of investors are now employing land banking as their form of investment strategy.

It is not rocket science and there is an empirical law of nature that guides and makes this strategy one of the best forms of investment and that is “Land will continue to appreciate over time” as opposed to the other type of investments like bonds and crypto which are unstable and volatile but the land will always give a good return on investment.

Are you considering starting an investment but don’t know where to start? Or maybe you’ve made some bad investment in the past, and you’re now skeptical of the right investment. Land banking is all you need. In this article, I will guide you through what you need to know about land banking.

What is land Banking Investment?

Land banking is an investment vehicle and scheme that involves and encourages investment in an underdeveloped landed property at a reduced rate, with the aim of holding unto the land within a given period and selling it for a profit as the value appreciates. According to experts, this type of investment can be easily obtained by new and corporate investors; it is also a good investment vehicle for investors that don’t have all the money for further development.

alt- Land banking
Land

Why should you invest in land banking?

Land banking is time tested investment strategy that has created a lot of wealth for a lot of people in real estate. Investing in this strategy is putting your money into fixed assets one that cannot be broken, stolen, or destroyed. Land cost nothing to own. Given the value proposition that comes with owning land, I often find myself scratching my head and wondering “why aren’t more investors involved with this?

Investors can make huge returns on the value appreciation of the land. Some government projects or policies can lead to rezoning, municipal expansions, rapid infrastructural development, and industrialization, all catalysts for value appreciation and increased demand.

Is land a good investment in Nigeria?

Pretty much yes, the land is a very good investment in Nigeria, though like every other investment in Nigeria. Land banking investment has its own deficiencies; like land grabbing (omo onile), Government policies, and accessing the right property document before purchasing the land. The government has taken significant measures to curb these, and more will be required of them also to allow investors to flourish with their investment.

The housing deficit in Nigeria also makes land a very good investment. According to data, online Nigeria has a housing deficit of 22 million. That’s a lot of people that need shelter. You can purchase land; build on it, lease it out and earn passively from the rent income or leave it, after some years; you can decide to sell it knowing the value has appreciated over time.

Read also: Estates in Land: 4 types and differences

How you can beat inflation by investing in land banking

With the daily increase in inflation, any form of investment and most notably real estate investments requires your due diligence. Of all investment strategies, most real estate investors are now adopting the land banking strategy ahead of other traditional real estate investments. Land banking has become a thriving investment option, especially for corporate real estate investors.

Conclusion

Looking 5, 10, or 20 years into your future or planning for early retirement. Putting your money in the bank won’t enable you a good retirement package. So is investing in bonds or other forms of investment. But you can rest assured, that your land will save you when you need help. Because your land won’t disappear but will be there for you to see or even your future generation to see.

Leave a Reply

Your email address will not be published. Required fields are marked *

CALL US

At REDOC REAL ESTATE ENTERPRISE LTD.our core goal is to make life beautiful in every sense for people by transforming the environment they live in.

Copyrights © REDOC Homes, 2023. Designed by Evaluate Media

Request a call Back

Start Investing

SELECT INVESTMENT PLAN
Open chat
Hello 👋
Can we help you?