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.

So when is the best time to invest? Invest while prices are still affordable, where there’s room for growth, and where the potential for profit is greater. This is buying land at the pre-developed stage. One could compare purchasing land at the pre-developed stage to purchasing at wholesale, while purchasing land at the developed stage to purchasing at retail.

Land banking is timeless. The power of land is universal. The pressure of an exploding population on unimproved land places the owner of that land in an enviable profit-making position that will never again exist. Once the land is developed, the original opportunity is gone.

Over the past few years,we have all seen the traditional forms of investment struggle to perform. We’ve all too often seen the headlines about falling pension values and endowments falling short, and the days of PEPS and other saving plans are numbered. With these current opportunities failing; what is the answer? Where can we place money in the medium to long term to see a positive return? Where is it safe to invest? A simple answer: – Land.

Pre-planning purchase of pre-developed vacant land is nothing new – the large developers have been doing it for decades. Developers “stockpile” land into their own Land-Banks. What is new? Since a recent change in the way land can be registered Amberley Knight is now able offer this previously unavailable opportunity to the general public.

It is no secret that buying investment-grade land is a safer option than buying land which is a finished product with a structure on it, where everyone else except the investor has made money (land owners, developers, realtors, brokers… etc) Much like any other product/ingredient in the pre-production phase, it is better value in its raw un-produced format.
This form of investing has generally only been available to wealthy investors and large corporations due to very high minimums of investment (generally large blocks of land are sold in parcels of 100+ acres which could cost £5 Million+). Due to recent changes in policy, Amberley Knight is able to offer investment grade land to virtually anyone.

No maintenance like you would have in a rental property, no risk of non payment of the rent, no agency fee’s. In fact no structure to worry about at all!

Land can be bought through Amberley Knight in unit sizes and therefore portions can be sold off or acquired without the need to sell all holdings (much like a mutual fund. Yet there are limitations over mutual funds as land is not as liquid a commodity.

Can you name one commodity that has a growth of 1,348% of your investment? Stocks? Bonds? Savings? Not even close! Land across the UK has increased by a staggering 1,348% over 20 years; far out pacing any other commodities return you could have possibly made! The US losses in stocks and shares total 13 trillion dollars since 2002. Imagine 13 trillion dollars in wealth being wiped out in a single year!

The UK is certainly no stranger to a volatile market. The FTSE index halved in value since reaching a peak at 6950 in December 1999. In January 2003 the FTSE 100 fell into its lowest point since the mid 1990’s, wiping nearly 30 billion from the value of blue chip shares. Just take a look at the charts, they show a remarkable difference in rate of return.

FACT… The UK population has increased by a staggering 3.2 million people over the last 20 years. This is predicted to accelerate resulting in more demand for housing.

FACT… The birth rate is far higher than the death rate. People are living on average 10 years longer than the 1970’s, resulting in a greater demand for affordable housing.

FACT… The UK has over 170,000 immigrants per year. And with the incorporation of new counties into the EU this is set to rise.This has put a great strain on available housing.

FACT… With a greater number of divorces than ever before, approximately 130,000 per year, there are more people living in single homes than ever before.

FACT… Teenage pregnancies and single parent households are at an all time high. This has put an enormous strain on affordable housing.

FACT… One person households make up an astonishing 30% of households.

In a four year period alone, the government approved almost half of all development proposals in England on greenbelt land. Furthermore, the office of the Deputy Prime Minister predicts that an additional 3,285,000 further homes will be required across England. And over the next twenty years 52% of all new homes will be built on Greenfield sites*.

This trend is driving the cost of housing higher and higher. Just take London for example, the average price of a home in 2000 increased by 16% from the previous year to £155,000. By 2002 that was up to £282,000 and this was predicted to climb to nearly £500,000 by 2007.

Donald Trump

According to the Wharton University of Pennsylvania, there can be no doubt that Donald J. Trump is the epitome of an American success story. In 1990 Trump was $900 million in debt. Unlike the average person who throws in the towel at the first sign of disappointment,Trump did not quit and bail out at the first sign of adversity. He hung in there and made an astounding comeback, and is now on top of the world. In an interview with Wall Street Week on July 26, 2002, Trump said that today his Company is a bigger Company than it was in the early ‘90s.He went on to say: “I just love real estate. It’s tangible, it’s solid, and it’s beautiful.” The Trump Tower on 5th Ave. was his original crown jewel. Today he owns many other amazing Manhattan properties that include the Trump World Tower, and the Trump Palace. What property excites Donald J. Trump the most these days? It’s his prime undeveloped land parcel, the old West Side Rail yards in Manhattan. This amazing, undeveloped 100-acre plot goes from 59th to 72nd streets along the Hudson River, and is one of the last remaining large land parcels left in Manhattan. Donald J. Trump understood the value of land banking.He realised that if he just buys and holds the land, he would position himself to make a fortune.When fully developed, this 100-acre parcel will be called Trump Place. If Donald Trump has one regret, it’s that he didn’t buy and hold more land in New York City when he had the chance.

Bob Hope

Bob Hope was a firm believer in land banking in Southern California. According to the Associated Press, 7-29-03, Bob Hope became one of the wealthiest people the entertainment industry ever produced, investing his money in Southern California land when it was little more than orange groves and scrubland. At one point he owned at least 10,000 acres of land in the San Fernando Valley. Combined with other land holdings, this made him the largest private landowner in California. According to a Time Magazine Report in 1967, Bob Hope owned “8,000 acres in Palm Springs, 4,000 to 5,000 acres near Phoenix, more than 7,500 acres in Malibu,” and more. Hope was thought to have enough land to make a principality nearly 50 times the size of Monaco, with just as fine a climate. In 1978, his property-tax bill to the state exceeded $1-million (U.S.). With the recent passing of Bob Hope, reports of his immense wealth are flying once again. “As much as $500 million,” reported the St. Petersburg Times. “$400 million to $700 million,” declared The Dallas Morning News. Fox News Channel’s Terry Keenan said, “You can bet it is in the hundreds of millions, perhaps maybe $1 billion.”

Howard Hughes

Howard Hughes was a visionary who bought and held land in Southern California and the Las Vegas Valley. He was a firm believer in land banking his properties. In Los Angeles, California, Howard Hughes is well known for Playa Vista – the 974-acre, former site of the Hughes Aircraft Company. This property extends from the Pacific Ocean to the San Diego Freeway, between Marina del Rey and Los Angeles International Airport. There are big plans for the site that include 13,000 residential units, 6 million sq. ft. of commercial space and 1,000 hotel rooms. In the early 1950s, Howard Hughes acquired a 22,500-acre parcel of land located along the western rim of the Las Vegas Valley, well outside the Las Vegas city limits. Today, this land parcel is known as Summerlin, and regarded as one of the most desirable and prestigious master planned communities in Nevada. By 2015 Summerlin is projected to be home to approximately 160,000 residents in 30 distinct villages. Howard Hughes’ land holdings made him vast fortunes during his lifetime. Would you care to guess what the 974-acre Playa Vista property in Los Angeles would be worth today?

Buying land is a simple straight forward process. Whether you are an experienced investor or a first time buyer, it is our aim to ensure that you, the customer are the priority. Following your enquiry to Amberley Knight you will be appointed your own consultant who will be able to guide you every step of the way. Once all your questions have been answered and you are ready to proceed, the entire process can normally be completed within just 14 to 21days. Please see below a detailed overview of the complete purchase process.

Plot Purchase Process

Day 1

Select the plot or plots that you would like to purchase and pay the plot reservation fee of £500 per plot. The plot reservation fee ensures your chosen plot(s) will be taken off the market and held exclusively for you. We will then send you a full purchase pack containing all the relevant documentation including plot purchase agreement and payment terms. The purchase documents should be signed and returned to us within 7 days along with the remainder of your 10% deposit.

Day 14

Upon cleared balance, our Legal Department will send you all the relevant land registration paperwork (TP1, AP1 and ID1 forms) which will be completed along with the site plan highlighting the purchased plot(s). These should be signed and returned to us along with the outstanding balance and a copy of identification within 7 days.

Day 21

You will receive confirmation of completion and the purchase will be registered with HM Land Registry. You will then receive the freehold title deeds directly from HM Land Registry. You are now the proud owner of you chosen plot(s) Congratulations! The process is that simple! At Amberley Knight we pride ourselves on our exceptional customer service. We ensure all of our consultants are trained to the highest standards and work hand in hand with all clients from initial enquiry to completion of purchase.

SIPP ready investments available for investors.

Many of our clients choose to add to their existing portfolio by purchasing land with development potential via a SIPP.

SIPPs (Self Invested Personal Pension) are an excellent mechanism for investors to widen their portfolio with the buying power of their pension as well as be in control of the profits made.

By using a specialist UK FSA regulated SIPP Provider and a qualified SIPP Administrator you can take full advantage of investing in development sites using your SIPP.

Our fully regulated partners will be able to advise you on the best way to utilise your SIPP based on your personal investment strategy and circumstances.