Land Banking
Land Banking is an investment technique which involves buying vacant land and hold on to it for future sale or development. People ignore buying vacant lands as they are more into buying flats and houses. But this causes most people to overlook a lot of the advantages that land has over other real estate investments. Buying land comes with no utility payments, no tenant problems, no broken toilets, no leakage etc.
People want to see the outcome of their investment immediately and because of that land banking is overlooked. But think of the long-term, 10–30 years from now. What will real estate look like, and what decisions should you be making today to make the most of the future? Look at your nearby vacant areas that are in the path of growth and imagine what it will become after 10 years. Buy property at today’s low prices and just wait until the city grows to them. When this happens, the land prices spike in value and you’ll be able to cash in on your land investment. You can sell your land in future to turn a profit.
It may happen that you drive past a property and think — “If only I had bought that property when it was for sale few years ago?”. So whats the wait for? Step up, as many multi-millionaires have been created from this strategy, and you can do it too.
