Advantages Of Investing In Greenfield Land
There are several types of investments in the UK right now but investing in Greenfield sites is more profitable than other types of investment in the UK right now. Here is a rundown of the advantages that Greenfield site investment has over others
Due to the shortage of homes in the UK right now, there is high demand for homes. So, a lot of home builders are ready to make a fortune from building homes on Greenfield sites. If you invest in sourcing of suitable Greenfield sites and getting planning permission for them, the sites will be sold off in no time and you get your returns.
The only time involved is the time needed to get planning permission for the already sourced Greenfield sites. This time can even be shorter when handled by an experienced team. Sometimes, in less than a year, you will get your money back including the returns on it.
How many investments allow you get back your whole capital including the profit in such a short period of time? Other types of investments will tie your capital down much longer.
No asset is as profitable as a piece of UK land with planning permission. When a Greenfield site is sourced and its planning permission approved, your investment on it can yield between 20 to 36 percent profit. Other types of investments don’t yield such interest.
There is a dire need for homes in the UK so there is waiting demand for the homes that will be built on sourced Greenfield land. The project is being managed by a team of experts with the support of UK government. The acute shortage of homes in the UK will make it almost impossible for any application for planning permission to be rejected. So, where is the risk here? It is virtually riskless.
Investing in Greenfield sites offers higher returns and low risks breaking a major investment rule that says higher return investments are always fraught with higher risks. Other types of investments have higher risks despite not generating up to 20 percent ROI.
Non-residents can invest in the development of Greenfield sites. It is more profitable for them since their profit on the investment is tax free. When non-residents invest in other types of investments, their profit will be taxed, making the ROI even lower.
As an investor all you need is invest your money and await your capital and profit. The company in charge will do all the work from sourcing great Greenfield sites to the application for planning permission. You may have a part to play in other types of investments.
All the policies surrounding development of Greenfield sites are favorable to the business. A very good example was announced recently that there is plan to give Greenfield sites automatic planning permission. This makes the investment even more lucrative.