Wednesday 29 August 2012

Is It Worth Investing in Land UK or Overseas?

Is It Worth Investing in Land UK or Overseas?

The benefits of investing in property are clear, but if you see land for sale or at auction, is it worth investing in?

Land comes up for sale on a regular basis, both via land agents and estate agents, and at auctions. Prices vary depending on the type of land being offered, whereabouts its located in the UK, whether it’s in the town or country and the prospects it has for the future. If you choose carefully and buy wisely, land can certainly prove to be a good investment.

Like any property purchase, it’s advisable not to rush into a land purchase without doing your research first. If you’re thinking of using the land, either immediately or in the future, for a building project, then you’ll need to find out if there are any restrictions in place that would prevent you from building on the land.

It’s also worth finding out if anyone else has ever successfully applied for planning permission or had it turned down. Some land may even come with planning permission granted – but be aware that you could end up paying as much as 10% extra if this is the case. If you have entirely different ideas as to what you want to do with the land and don’t want to take up suggested plans, then you may be better off finding land without pre-accepted plans attached.

The first thing most people think about is to build a house or flats on any available land, but there are other useful projects that you could consider too. If the land is in a town or city, and especially if it may not be suitable for putting a residential development on, it’s worth considering whether you could use the plot to build one or more garages instead.

Garages and parking spaces are often in huge demand, especially in towns and cities, as we’ve explored previously. Building one or more decent sized garages would obviously be a lot cheaper than building a property, so you’ve less outlay to worry about, and if you consider adding basic facilities, it could double up as workshop space too.

Both garage sales and garage rents can bring in a decent amount of profit and a good return on your land investment. If the location is particularly desirable for garage lets, then renting it out could be a better return in the long run than selling it on.

So, if you fancy something a bit different, don’t mind some hard work and have ideas of your own to explore, it may well be worth giving a second thought to land investment.

Why you should invest in UK Land

Why you should invest in UK Land

In this blog post I thought I would quickly list my thoughts and opinions on why you should invest in land… Are you looking to build physical assets or invest for the future? Land investment fascinates me, and owning a plot of land (big or small) is very rewarding. Remember, land is a tangible asset (unlike stocks or shares) and it will increase in value over time.

So, why should you invest in land? First of all land is a safe investment, as long as you research the area (making sure it offers what you want) and find sound legal advice to ensure that both the sale and asking price is above board. Secondly, land prices have historically always gone up over the years, mainly because there is a limited amount of land for sale in the UK… With this in mind, point three on why you should invest (and hold on) to land is ROI, your return on investment! Like property prices, land prices have rocketed over the decades, enough said!

Who knows, a decade or two from now, future investors may look back and say “I wish I had bought some land back in 2011!” One final advantage of investing in land is you can negotiate a price with the land seller… Remember, we live in tough economic times and each plot of land is different, great investments may simply depend on how quick a person wants to sell!

Good luck with your hunt for land, please post your thoughts and experiences below on land investment, I would love to hear them! Find out more on our land investment website www.qbland.co.uk

Sunday 26 August 2012

Land Investing Advice

Land Investing Advice

Brazil has grown in popularity amongst investors at an incredible pace over the past 5 years, inevitably leading to huge price increases on what was previously ‘dime a dozen’ real estate. As the appeal of the region continues, increasing numbers of investors are searching for different ways of making huge capital growth at rock bottom prices.

Land investing in Brazil offers speculators an opportunity to enter the market and build on existing portfolios, at the lowest entry level prices with a greater selection of exit strategies. Land Investing Brazil has compiled a list of the most frequently asked questions from clients keen to enter the Brazilian market and make the most from their investment.

Why is it so cheap? The northeast of Brazil offers everything a person could want for a dream lifestyle, yet the local population have until recently been unable to develop the local resources. The lack of capital, high interest rates, low wages and lack of foreign investment have resulted in prime unspoilt land in a stunning destination. Government incentives to promote tourism for the development of this region has opened the doors to foreign investors, bringing in capital and benefitting from huge growth at the lowest prices.

What constitutes good land for investment? Prime land for investment in the northeast of Brazil is that which comprises of features in demand. Stunning visual surrounds offering the ‘wow factor’ is something that buyers will always want. Close proximity to established towns with good road connections will drive prices up faster. The areas that are being developed offer excellent connections with good infrastructure and within easy reach of international airports. It is advisable to avoid agricultural land, even though the prices are cheaper, as limited exit strategies will apply. The connection of utility services to the land, or the possibility to have them connected in the near future will enable even greater returns in a shorter period of time.

What are the exit strategies? Land offers a greater variety of exit strategies to a typical apartment or villa purchase, with little or no maintenance costs. Many land investors in Brazil opt for Land Banking, holding onto prime plots for a period of time while the demand grows, the infrastructure develops and the value increases dramatically. If a land is purchased prior to obtaining permission for construction, the price is often much lower and will offer substantial gains once the permission is obtained. Land purchased with permission to construct can present the buyer with the option to build, selling the finished product at prices that are often double the seller’s outlay. Developers are snapping up large plots for hotels and multiple units, knowing the demand from European and North American buyers is growing at an incredible pace.

What are the restrictions on foreign ownership? Throughout Brazil, for the purchase of land, apartments, villas and other real estate, there are no restrictions on foreign ownership. The Brazilian government are actively promoting development to foreign nationals, fully understanding the growth of the economy is greatly assisted by foreign investment.

What types of properties can be built? Some land purchases will have set parameters relating to the planning consent. Pre-purchasing research should include a full understanding of what the buyer intends to do with their Brazilian land plot, to ensure the type of land being purchased fits the buyer’s requirements. Restrictions on plots should be explained during the search process to ensure correct advice for finding the ideal plot of land. The types of properties to be built can include a villas blocks of apartments, hotels; the choices are only restricted by the buyers intended cash outlay.

How can I buy it? Buying land in Brazil is a simple, straight forward procedure offering fantastic opportunities to all investors. Contact Land Investing Brazil to discuss personal preferences, requirements and availability for a fantastic addition to you investment portfolio.

www.globalpropertyguide.com  provides extensive experience dealing with and on behalf of investors throughout the world, offering unbiased information on portfolios and international markets. Our experience within the global property sector enables us a prime position for identifying professional agents and developers, ensuring our clients receive full knowledge prior to entering any property investment purchase with our collaborators.

Land Investments and the Recession

Land Investments and the Recession

Simple economic theory explains why land is such a good investment. The market price of virtually everything is largely related to how much of it exists. Take oil for example, if suddenly the number of barrels coming into the UK halved overnight, each barrel would cost a lot more because the seller would realize they had something that everybody wants and these people cannot get it elsewhere.

The same is true of land, but the most important thing to remember is that there will never be more land. We have a limited amount of land available in the world and it is only getting less due to more and more land being purchased and of course other modern day factors such as global warming. This means that naturally the price will always generally be on the way up, so the best time to get involved is now.
The recession and investments.

Of course, in the UK and indeed across most parts of the world we have experienced a long period of economic downturn which certainly hasn’t provided the best conditions to invest large sums of money and certainly many traditional forms of investment are now less attractive to those looking for a good return over time.

This has led to new investment types becoming available by London based companies. A typical investment would involve entering a limited liability partnership which had ownership of land. You would be part owner of the partnership company and as a result own a share of the land. I hope you enjoyed this article.

The Popularity of Land Investment Is Growing

The Popularity of Land Investment Is Growing

So what’s the difference between Realtors and Real Estate Investors? The piece of paper the Realtor has. No, seriously though, a Realtor has the right to sell property for somebody else. A Real Estate Investor buys and sells their own properties. Now, the main difference between a Realtor and Real Estate Investor is that Realtors charge a lot for their services, and their prices tend to be on the high side. This is why Land Investment Market has increased; People are sick and tired of the tricks Realtors play, and decided to start buying properties on their own.

Sure, we are in a Housing slowdown right now. However, the price of land is never parallel with Real Estate Houses. Real Estate goes up and down in 6-8 year cycles, as many of you already know. What many of you might not know is that land prices tend to always appreciate. Land is similar to oil in the sense that it’s a finite commodity. However, at least it’s possible to make synthetic oils and stuff like that. Land, however, is obviously not being made anymore. Once all the land in this planet runs out, there will simply be no more land, and your piece would climb drastically in value.

Many people, including some of my clients, have come to realize that it’s less expensive to buy a residential lot and build a house than simply just buying a house. This means two things. First, you can build the house on your lot and turn it into a rental property. Or, you can simply cash out on your existing home, and relocate to good, clean areas including that new house you bought on your multi-acre property!

There are many things you can investment in. But how safe are these investments? Let’s break it down:
Stock Market- Sure it’s lucrative, but only if your at the top of the company. Your dealing with money that doesn’t exist when you play the stock market.

Mutual Funds- Safer, but the return isn’t as good.

Bonds- Safe, but again, the return isn’t good.

Houses- This is tricky as it all depends on the location.

Land- It’s appreciates in value, can’t be destroyed in the case of a natural disaster, and is the first step involved in getting a place to live.

These are just a few of the reasons why land investment has increased in popularity. Grab that property you’ve been eying before it’s too late!