Land banking is a real estate investment where investors buy small or large area of land in an underdeveloped area and hold for profit resale in later years. What this means is that, investors seek out land and buy in underdeveloped area and bank it until there is a substantial infrastructural development or population growth. With its potential for long-term appreciation, land banking is worth considering for investors seeking to maximize their returns of investments in Edo State.
With the growing population and urbanization in Edo state today, the demand for land is rising and this is creating new opportunities for Land bankers to make more profits. There are so many benefits of land banking one of which is the easy access to credit loan in which the land can be used as a collateral. Another benefit is that the land can be placed on lease pending when it will appreciate enough to resell.
When investing land banking, there several factors to consider.
Location is one of the most important feature to consider when investing in land banking. In as much as it is a lucrative and beneficial, the risk is that the land may be difficult to sell when the time comes. This is especially true if the land is located in a remote area or is not zoned for the type of development investors are looking for
The price of the land matters a lot. In land banking, it is important not to overpay for the land considering it features and size. When you over pay in buying, it is usually difficult to resell to make profit
This has to do with regulating the use of property and the construction of building under the area concerned. When engaging in land banking, it is very important to be sure that the area is zoned for the type of development you have in mind. If you are holding the land to resell for companies, be sure that the area is zoned to be industrial nor or in the future. Do not bank a residential land with the hope of selling it off to a company in the future.
Before investing in land banking, observe the infrastructure in that area, Is there a tendency of development in the next few years? If no then it might be a bad investment. Also know that the presence of infrastructure such as roads, electricity, water, etc increase the value and of lands in such areas.
To get expert help to start your Real Estate investment journey in Edo State contact us @edoproperty.com
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