Land banking is a relatively new investment concept that allows smaller investors to own a piece of valuable land. Probably the first thing to consider with online banking is convenience. You can access your bank via the Internet at any time of day or night, even while lying in bed if you like. Transactions performed online are generally much cheaper than those done over the counter at a bank branch. You can pay bills, transfer cash, check balances, and much more for much less.
How does land banking work?
When large parcels of land are put up for sale, they are usually far too expensive for a single small investor. Land that’s in a good place for residential or business development is usually either bought by a land investment company or by a property developer. The owner then “banks” or holds onto the land until they are ready to sell it or develop it. During this time, they can parcel the land up into smaller, much more affordable sections and sell these sections to private investors. Each investor holds the freehold of their land and can sell at any time, although the best profits are usually realized when planning permission is granted for the site.
How much does it cost?
The cost of the land to small investors will depend upon the type of land, the potential for development, and the size of the land. For as little as £5,000, investors can buy a good-sized piece of land in a prestigious location. You can, of course, choose to spend much more, and the land parcels are often graduated in size to accommodate a range of investors.
Is it complicated to buy?
The land is easier to buy than property. It is still a legal contract, though, so it’s worth getting it checked by your solicitor. The straightforward nature of the purchase means that it can often be completed within 28 days.
Can I sell it?
In most, if not all cases, when you buy the land, you also acquire the freehold. This means that you can sell the land at any time. Most people hold on to their property for between 2-8 years, to realize profits from the development of the site, but you can sell whenever you want or need to.
Where do I start?
If you’re interested in land investment, then talk to a land agent. They will have a variety of sites on their books and have the experience and expertise to guide and advise you throughout the process.
Whether it's a credit card or bank account, write a letter requesting that the account is formally closed. Not only will this improve your credit score, but it is also a useful way to avoid money from being scattered all over the place. Don't let department stores and credit card companies lure you into opening new accounts by offering favorable interest rates and purchase discounts. It's easy for credit to get out of hand by taking advantage of every credit offer that comes your way.
If you have several credit card accounts with outstanding balances, try to consolidate them into one. Be careful and check the balance transfer interest rates and one-time fees. Also, make a list of all your open Money Markets, Savings, CDs, IRAs, Mutual Funds, and other accounts to see if any consolidation can be done. Keeping your money in fewer places eliminates all of the guesswork involved and reduces errors.
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