Land Banking (land investment) is the practice of acquiring land and holding it for future use. Once only an option for the wealthy, or a large organisation; purchasing land has for a long time generated income
by natural growth, then soared as planning permission is granted for development. Buy pre-planning land cheaply, stock-pile it (creating a Land Bank) and then endeavour to get planning on it as soon as possible. This is
now available for the ordinary investor!
Historically, countless fortunes have been made in Land Banking by individuals who understood the concept of buying and holding pre-developed land in the path of growth.They did nothing more than buy
and hold land in growing regions. Imagine buying land on the outskirts of London, New York, Tokyo at prices 10 years ago and what
it is worth today.
UK house prices have sky rocketed over recent years, but the cost of building remains much the same. These increases in value have been largely in the land and not the property itself.
