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LAND BANKING

 

JASPER ESTATE located at Ibeju-Lekki, Lagos.

OVERVIEW

A common phrase of Africa’s most sought after investment coach, Stephen Akintayo is that you do not wait to buy land; you buy and wait. That explains land banking because it involves buying and holding (banking) land for sale or future development. 

 

Land banking is an excellent strategy for building wealth. It is an act of investing a fixed amount of money for a period and enjoying high returns. Most people practice land banking, which is a real estate investment scheme that involves buying plots of land. Because land banking is no longer news, it creates interest for direct investors in the real estate transaction.

 

What is popularly done by property developers is to buy land, divide it into smaller blocks, and offer to investors. Then, investors go ahead to buy a plot or for an option agreement.

 An option agreement occurs when a developer identifies a parcel of land he or she believes has developmental potential, but obtaining planning may not be guaranteed. It is a situation when a developer and a landowner can enter into an Option Agreement. 

Although, it gives the developer the option to purchase the land (usually at an agreed sum, or market price less pre-agreed deductions) and the right to secure permission, without the possibility of being required to purchase a plot of land without preparation.

 

Benefits of land banking

The reality is land banking is among the best investments in the country. Even then, been seen as one of the most underrated or overlooked ways to become wealthy. Many investors seem to underrate it as they see it to be a pointless place to leave/park their money. They do not pay attention to this opportunity because they have no patience. You will hear them claim there is no immediate return (e.g. rental income), it is just lying, and there’s nothing happens, or you will hear it is just plain, boring, and nothing exciting. Lol. Only if you know that boring things are beautiful in real estate. Interestingly, such boring stuff makes the most revenue with the best performances.

 

Let’s concentrate on the benefits of land banking.

  1.  Land appreciation: It is no longer a question of whether land appreciates or not. It is categorically and objectively an area of asset appreciation as a limited supply and demand increase. Therefore, it would naturally rise in value as demand for the limited asset increases.
  2. Increase in return: You can get a buyer to pay you higher than the actual purchase price.
  3. Flexibility to own or hold: As an investor, you can choose to hold onto the land as a long term investment or own it.
  4. You can always buy without viewing:  One of the best aspects of buying land is that sometimes you can do that without ever seeing it in person. Moreover, the land involves no structures, such as buildings and properties. Which means the inspection is pretty simple. The necessary searches must be adhered to to ensure that the land is not in any way contaminated. But with the right research and the right tools, you can easily buy land without visiting the site. GTEXT HOMES is a tested and trusted real estate company I can and will always recommend 
  5. The scarcity of land resources is also a benefit of land banking.
  6. Owning and maintaining land is less expensive.

Land Banking Tips You Should Know As An Investor.

After getting to know the benefits of land banking. the various ways investors can make money by investing in landed property are:

  • they can divide a single plot into several plots to increase its value.
  • Investors can develop on land to increase its use and its value.
  • Investors can simply buy and hold land, as it has historically appreciated more often than not.
  • Investors can lease the land for long or short-term reasons to collect rent.

 How Can I Start My Land Banking?

Do not look further, GTEXT HOMES is always there to make your dreams come true. You can get to buy land at a very affordable and discounted prices. Making high returns is an assurance we will grant you. 

For more information, please visit www.gtexthomes.com or call 0818111999

 

2 Comments

  1. Very educative….
    The funny truth is that I didn’t know all this until Gtexthomes.

    1. Thanks

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