Land Banking Investment
Land banking is one of the best real estate investment strategies or vehicles that hedge your finance against inflation and guarantees good Return on Investment (profit). As long as you accumulate land in some of the best places for real estate investing, you are sure to maximize profit.

The profit from land banking is usually better than what you earn when you put your money in the bank, and the risk is lower than what’s obtainable in FOREX and Stock.

The bulk of the appreciation in real estate value comes from land. Houses, on the other hand, have inherent expenses like maintenance costs, utility bills, mortgages and some sorts of taxation. This makes land banking the real deal.

What Is Land Banking?
Land banking is buying and holding land for a significant period until its value appreciates. It entails buying land in units or bulk (at the current low prices) on the outskirt of a city and waiting for development and population to grow to them so the price can spike.

What Is The Purpose Of Land Banking?
Every wealthy person banked land in very large measure. And if the person has a good land banking strategy, you might discover they made their wealth from land banking.

McDonalds once asked, “Which business do you think I do?”

His audience felt embarrassed, “Who doesn’t know what McDonalds do for a living?”

“You sell burgers”, they replied.

But McDonalds refuted it, “No, I’m into real estate investing”

I want to assume his burger business is his side hustle. It isn’t what gives him the bulk of his money. Some investors tie the bulk of their profit in real estate for a long time, and the appreciated value explodes them into riches.

The secret behind this is simple, “land is limited in supply, and its value always appreciates”.

All billionaires in the world bank land; Jeff Bezos, Bill Gates, the late Queen Elizabeth etc.

John Jacob Astor became the first multi-millionaire in the United States of America by banking land. He died being the fourth richest man in American history with a net worth of $110.1 billion.

Land banking is often called a Get Rich Slow scheme. It’s not going to make you rich overnight, but it will certainly make you rich. Real estate investing, which includes land banking, is the safest and surest way to get rich.

Obviously, the reason people bank land is to grow wealth.

Land Banking Strategies In Nigeria
Land banking is a popular investment strategy in Nigeria that involves buying and holding land for future appreciation in value. There are many different strategies that investors can use to make a profit from land banking, but I discussed two of the most effective of them below.

Buy to Flip: one can decide to buy a portion of land now to resell when the value rises in future. In this case, the buyer holds the piece of land for a significant length of time for them to maximize their investment.
Sometimes, the investor can decide to sell a portion of the land (as the value appreciates) and use the proceed to buy other plots in a more promising environment.

Buy to Develop: some investors’ land banking strategy requires them to sell a portion of their land as the value appreciates and use the proceed to build the other plot.
While some investors might be interested in earning rental income, some others might want to sell the already-built house and continue with their land banking cycle.

Advantages of Land Banking As An Investment Vehicle
The land you buy in suburbs is cheaper than those in the city. You get the opportunity to sell at a far higher price in future.
The profit you make from the transaction, in the end, is extremely high and encouraging.
It does not require unnecessary costs like maintenance costs, utility bills etc.
It is a low-competitive real estate investing niche. Most real estate investors are not interested in land banking, making it a low-competitive goldmine.
[/b]Disadvantages Of Land Banking As An Investment Vehicle[b]
Those who don’t conduct land searches before banking land might accumulate government-acquired land. Or land with certain restrictions or purposes (hectares set aside strictly for agriculture).
Investors can also fall prey to land grabbers. That’s why it’s better to bank land with real estate firms or developers than omoniles.
Banking land in highly remote places makes it take much time before the value starts appreciating. Except you have first-hand information that some giant projects or infrastructure will be there soon, you should tread carefully. Ensure you follow the rules stated in this Free Real Estate Investing eBook.
The major disadvantage of land banking is the significant time it takes the land value to appreciate. Not everyone has the patience to wait for the land value to appreciate. For this reason, land banking as a real estate investing strategy might not be good enough for those with financial instability.
In conclusion, Land banking is a great way to invest and make a profit in Nigeria. And with the right strategy, you can be sure to get the result you desire. It is important to remember that land banking requires time, patience and a good understanding of the market to be successful.

If you need a piece of advice or support to bank land in Nigeria, get in touch let’s help you choose the strategy that is best suited for your investment goals and risk tolerance. You can also call our line for a quick response: + 2348037843617.