Land investment is currently an
attraction for a lot of people, and this is to be expected, considering the
immense opportunities it presents. Many people consider land investment a
veritable alternative to property investment. This is because land offers the
same returns as property but at a smaller initial investment. For some people,
investing in unique UK land is all about the returns, whilst for others it is
about the challenge that it brings.
If you wish to invest in land, then
it is recommended that you first do a thorough market research. The deeper the
level of your research, the less likely for your investment to fail. Recommended
areas you must research include locations, the market rates for land in your
desired locations, the speed at which it sells etc.
For a profitable land investment
opportunity, there are a couple of things that you must bear in mind before you
proceed. You have to ask yourself; what do I want to do with the land? The
answer to this question will help act as a guide as to what type of land to buy
and in what location. Next, count the cost. One of the disadvantages of owning
a unique UK property for investment is the high cost associated with it. It is
therefore pertinent to have a good idea of these costs and be prepared for it.
Some of the costs you may be confronted with include; planning permissions,
architect plans, legal costs etc.
It is equally important to take a
critical look at the land itself. Is it sufficient for the purpose for which
you intend? Are there any flaws associated with the land? Does it have access
to important services; drainage, power, sewers? And finally, for those who wish
to develop their lands for onward disposal, there is a need to know the
profitability of the property. Is it in a good location? Is there an available
market?
There are basically two types of
lands that can be used for development; Brownfield land and Greenfield land.
Greenfield lands refer to undeveloped lands such as forests and parks. It is
often difficult to get planning permission for them. Brownfield lands, on the
other hand, are lands that have once been occupied by buildings. It is easier
to obtain permission for Brownfield lands as it is known that something was
once built there. Therefore, Brownfield lands are the safer investment and
development option.
There is an acute shortage of
housing, occasioned by a fall in supply but growth in demand. The UK
government, being aware of this, made certain amendments in its housing bill
making it easier for planning approval for residential units on Brownfield land
site as well as encouraging greater density projects on inner city landscape.
This is great news for Brownfield investment.
For more information on how to
invest in Brownfield Land send us an email at enquire@highgroveconsulting.com