Business & Finance Finance

Small Plots Make Land Investment Affordable

Anyone wanting to buy property in the UK in the current climate will know how difficult circumstances are. House prices are static or falling, but still far out of reach of most potential first time buyers. Despite incredibly low interest rates, banks are very unwilling to lend to most people, asking for much bigger deposits than they did in the past. However, there are still plenty of people desperate to buy and get at least a toe-hold on the property ladder. To do this, they need to think outside the housing market, and look instead at land.

Buying land is surprisingly affordable when compared to buying housing, and is becoming more so. In the past land investment tended to be something for the big players able to splash out on large plots for their grand development plans. Today, it is far more open, with smaller plots of land being available much more often. For a cautious individual investor without huge amounts of money to spend, buying a small plot can be much easier and cheaper than buying a house. With a bit judicious background research buyers can pretty much guarantee themselves a safe investment. The same simply cannot be said of the UK housing market, the future of which is currently uncertain.

For individuals looking for affordable land, particularly if they do not have experience doing so, using a land Investment Company can make the process much easier and quicker. Typically, these companies will source land and divide large plots into small ones. Investors could buy just one plot, or put several together to make a larger plot. Some investors may want to buy in order to live on the plot themselves, others purely for investment. Either way, most good investment companies will be able to provide investors with expert advice to guide their choices.

Regardless of the reason for buying, there are certain things that investors looking for small plots of land need to make sure of. It's vital to research the land and find out if it is likely to produce a decent return. Land that will do so is generally on the edges of towns and cities, in areas that are likely to be re-zoned from greenbelt to housing land. Such land will then be able to receive planning permission for development, and will suddenly become very valuable. Most investors will then want to sell the land on to a developer, taking a hefty profit with them. Alternatively, they could look at overseeing a small development of houses themselves, but that can be a difficult thing to do without contacts and experience. In a poor housing market, it could also be a poor financial decision. Investors who want to house themselves on their land are in a safer position. They may not make a profit, but if they sell a little of their plot and build a house for themselves on the rest, they should be able to provide themselves with a bespoke, secure home cheaply.

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