Land Banking: Why You Should Invest in It

Investing in real estate has long been something for those in high positions (rich), financially sufficient and well-disposed to money, until the market was modified and more real estate investment opportunities opened up to anyone and everyone.
There are many people looking for investment opportunities to invest their money. One of the best investment opportunities in Nigeria with a high return on investment is the real estate sector, because land never depreciates.
In this article, you will discover the many advantages of investing in Land banking

What is Land Banking?

If you are new to the concept of Land Banking, you will have a question. What is that? And then, "Should I invest?"
Land banking is a real estate investment program in which a buyer or an investor purchase an undeveloped land at a reduced price with the intention of holding it for a period of time and selling it in the future for profit if the price rises.
Some land bank investment companies even create a 45% return on investment opportunity. The lowest profit you can earn on your investment is 15%.

5 reasons to invest in Land Banking

#1: Increase in Value
Land banking is a good investment strategy as the value continues to rise - this is true on a global scale. The cost of land acquisition, as mentioned, always increases and almost never decreases.

Land is one of the assets that can appreciate in value over a long period of time, so investing in land with growth potential at or below its current market value maximizes returns for the investor.

#2: Minimum starting capital
Vacant, undeveloped land is generally the least expensive type of property. It is only at the time of expansion and development that property begins to increase in value.

So if you know where to find good real estate deals, all you need is a minimal investment to start and run your business. Land Banking is a type of investment that does not require millions of Naira to start.

#3: Undeveloped land is a good investment
Land is easier to manage than built-up real estate, which needs to be maintained in reasonable conditions: no utilities, no problems with tenants and so on. No solution to problems such as leaking roofs, exploding pipes and hundreds of other building ownership problems.
Free land does not involve any of these things. After the purchase, it stays there and nothing happens. No stress!

#4: Generate significant income before outright sale
[/b]Land can generate income pending future economic development.
Renting is a good example.
Land on rural farmland can provide a lucrative source of income for property investors when urban farmers pay rent for the land to be used for farming (if the land is fertile).

#5:[b] Reduce competition
There is less competition in this real estate investment. Most people (especially those with big investments) focus on shiny and attractive real estate investments, such as: developments, house flipping, multi-units, etc.
One of the main advantages of buying undeveloped land is that there is less competition than you will face.
You can immediately find an area that meets your criteria and you can also negotiate for a better price deal.

#6: land sale subdivision
Another way for investors to make money from their investment in land banks is by dividing up their land for sale. Investors can increase the overall value of the land in their investment by dividing it into smaller lots and selling them individually to buyers.
In many cases, the divided land can be more valuable than the whole. This is because of marketability and because it is easier for a smaller and cheaper lot to find a buyer than for a large lot.
Research has shown that land banking investment is without question one of the best investment opportunity to tap into.
Land banking is an excellent investment, Especially for investors who want to invest, wait and forget.

Bashir Arowojobe
For: Bashir Arowojobe & Co
[Altruist Realtors]
bashirarowojobe@gmail.com
+2349039841233

You explained it very well.
Regards,
(Land Owner)