2. Land investment growth can and should be tracked with
professional guidance.
Alternative investments such as land can yield better-
than-the-market returns. Investors can also track the
investment's progress over time.
Investing during the worldwide recession has been a
difficult road for individuals most accustomed to
trading in stocks and bonds. Returns have been
disappointing since 2008, and the Eurozone crisis
portends very little good news for traditional
investments in the near term.
3. Investors instead have turned to alternative assets, the growth
from which has been considerably better in recent years.
These assets include hedge funds, exchange funds, private
equity and rarities (coins, art, jewelry, antiques and antique
autos). One alternative asset that is particularly attractive is
raw land. Unlike developed property - where market value
is well established, value growth may be minimal and
buildings need to be maintained over several years -
undeveloped land can grow in value under well-managed
circumstances and in a relatively short period of time.
Those circumstances currently include the housing
shortage and growing UK populations, where market forces
suggest millions of homes need to be built over the next
decade.
4. Professional land management companies often pool
investors into a single property fund that buys land, after
which a zoning change is sought with the local land
planning authorities. With that change, some
infrastructure may be put into place - roads, water and
other utilities, for example - and then sold to builders.
5. A substantial investment is necessary, typically beginning at
£10,000 and often several multiples of that amount. Of
course, at that level the investor could and should engage
themselves throughout the time the land is owned, tracking
progress according to a pre-established set of milestones.
Not everyone gets rich on land, but following a few crucial
tips can help the investor improve his or her odds:
6. • Hire the best consultants. Buying land that needs to
be rezoned is not a hobby for amateurs.
Professionals who understand potential future value,
as well as the local landscape for land planning
authorities and area housing needs, are necessary to
make the investment successful.
7. • Select a land investment that is consistent with yours in
timing and returns. Some land will mature to a profitable
position in 18 months. Other tracks may take five years
and perhaps longer ¬- which may or may not fit your own
financial management goals and needs. A professionally
managed land investment will be able to project this with
some accuracy. You can also expect to be given updates
on progress, such as when planning has approved new
zoning, whether infrastructure investment is necessary
and how well it is progressing. Land is an exciting,
tangible investment that shows progress you can
sometimes see and touch, if you are so inclined.
8. • Acquire land with the most promising properties. When
you work with professionals, they should select tracts
with certain, important characteristics: proximity to high
growth, where housing stock is in greatest demand,
where the land can be rezoned and where significant
improvements (cleanup of contaminants or expensive
infrastructure such as bridges) will not be necessary.
9. Because land is a significant investment, it is smart to first
talk to an independent financial advisor in advance. You
need to examine where a land investment would factor
into your investment portfolio, and how the timing of
the investment could affect your tax structure and living
or estate needs.
Resources:
http://www.sartainsheritage.com/
http://ezinearticles.com/?Track-Your-Strategic-Land-
Investment-Growth&id=8561081
