Land banking is the practice of purchasing raw land with the intent to hold on to it until such a time as it is profitable to sell. Land is popular as an investment as it is a tangible asset as opposed to shares or bonds.
The intended increase in value may come from inflation, conversion for use as housing, or potential for extraction of raw materials.
Typically parcels of land desirable for land banking are those that lie directly in the growth path of rapidly developing cities. The initial goal is to buy undeveloped land that will increase in value because it lies in the path of urban growth. The investment objective is to identify these parcels well in advance of the developers and wait for the value to be realized.
Land banking as an investment, is nothing new to America. Several self-made billionaires started by purchasing large tracts in California where the development opportunities had not yet arisen. People such as Bob Hope and Donald Trump have reaped tremendous reward from buying large areas and holding the property until the market commanded a considerable return when sold.
When planning on investing in Land Partner with reputable companies and will assist in the execution on proper due-diligence. There have been many scams dating back to the 1920’s and Florida is no stranger to such scams.
Land banking is a great investment tool, but you have to buy right.
Call us to day and lets discuss how we can tie up a great price of land for you to bank on!
Some information was used from: http://en.wikipedia.org/wiki/Land_banking