HomeBisnisWhat is land banking and why it matters in times of financial turmoil
What is land banking and why it matters in times of financial turmoil
June 2, 2020
The most pressing concern of investors, shareholders and businessmen around the globe is of crashing markets and economic losses amidst the financial turmoil that the onset of COVID-19 pandemic has brought along. Investors are frantically looking for safer and smarter business prospects that will not render them broke or at a loss. Fortunately, there is a silver lining despite the global recession that is sure to come. Land-banking is where the past, present and future lies.
What is land-banking?
Land-banking has been around for centuries and its attraction has only grown with the passing of time and the current financial climate makes Land-banking possibly the safest investment option out there. Land-banking is buying a piece of land in a lofty and high-growth area and holding it, leasing/renting it, sub-dividing one huge plot into smaller ones it or even constructing on it. The options are endless-so are the financial gains. Why risk putting all your savings in a low-yield and high-risk market during such unpredictable times when you can invest in a tangible fixed-asset that will only continue to grow in demand and value over time?
Why should you invest in Land?
Land-banking and land investment are golden opportunities that can pay you back for years and years to come. The manifold benefits of timely investing in a good piece of land will not only ensure a steady and safe stream of revenue with the choice of generating rental income, it is also a low-competition business venture. Moreover, it allows maximum flexibility to the purchaser and is economical and riddled with quick profits. Investors need not worry about overheads or maintenance cost-just add value to your land by adding value by infrastructure(water and electricity or road access) by applying the forced appreciation strategy. This is truly and ideal opportunity for those seeking safer, low-risk and maximum profit options in such wild times.
Now that you have decided that land investment and banking is the way to go-where does one begin? Well, it is simple. You need to make informed decisions based on market evaluation. Good land in a high-growth area will yield maximum profits and hiring experts to ensure to run a soil-test and geo-technical report (water and electricity) is just as crucial. It also will not hurt to do your research and invest in land that has potential for future development. The good part of land investment is the many options you get to explore. Who says you have to keep banking on the land forever? Look into sub-dividing your land into smaller plots, leasing/renting it to various investors and businesses or even plan construction and development on it. Lastly you must acquire permit for your intended use and you are good to go!
Where to invest?
The recent years have seen a boom in developmental projects in Mandalika, a stunning land of Indonesia where islands such as Lombok island are enriched with empty land waiting to be acquired. Why not invest in a beautiful country with unmatched potential and watch your profits hit the roof even during a pandemic!