Alternative Greenfield Investment; A Case For Brownfield Investment
Greenfield agricultural sites are undeveloped natural sites, they have never been touched for any purpose, either for housing, industry or transport. Unlike brownfield sites that are located in urban areas and have been previously built on, greenfield sites are located around rural or the country side. Brownfields are derelict, underused or contaminated lands that have previously been developed. Why can brownfield sites serve as an alternative greenfield investment?
Brownfield sites are located in urban areas and so having housing developed on such sites is better for workers who want to be able to get to their offices without purchasing cars. Brownfield sites are also quite valuable as the existing structures can be used for many homes. This can be done after the sites have been decontaminated and proper planning carried out. On February 7, 2017, the UK government passed some laws that will hasten the process of developing brownfield sites. Greenfield sites, on the other hand, are not so easily developed. Very strict development laws guard the development of Greenfield sites. In fact developing Greenfield sites require more robust and extensive planning as those sites should still serve the needs of not just the present generation but for future generations.
After the passing of the law, most councils have already set up targets for a number of houses to be developed per year, in most cases these numbers run into thousands. As a result of the relative ease in developing brownfields, this can be achieved. The need for housing in the UK keeps growing and the ease of planning for brownfield sites means that this need can be satisfied. Developing brownfield sites also help to preserve the rural landscape. The UK also happens to be the most desired location for foreign housing investors, ranking higher than Germany, the US, and France. The ease of developing brownfield sites will definitely appeal to these investors. The fact that the UK pounds is presently lower than some other foreign currencies makes the entry cost for these investors low, another advantage for brownfield sites.
So how can you generate income from this alternative greenfield investment? First, you will have to purchase some part of the sites as shares. It is widely known that most private homes in the UK are owned by groups of individuals who then rent out those apartments. You will be part of other individuals who purchase shares of brownfield sites. These sites will have been previously audited and are sites that will offer a great return on investment. After the purchase of such fields with the pooled resources, further audit and planning are done. The sale of the site comes next. The profit from the sale will then be shared among all the shareholders according to their investment percentage. The return on investment per year is 25%, far larger than saving your money in the bank.
For more information on how you can invest in brownfield sites, please contact highgroveconsulting.com