Wednesday, 12 December 2007

Making money from land

With the housing market now stagnant in the UK by far the best opportunity for capital growth is in land. The government's new housing strategy has promised that hundreds of thousands of new homes WILL be built - and that land earmarked as agricultural or green belt could attract the type of permissions that will turn thousands into millions!
In the East of England there are already scores of people that have banked seven figures by getting the thumbs up for planning permission and then a sale to one of the big housebuilders. Grab some farmalnd at a few thousand pounds per acre and you could soon turn that into 100,000-plus per acre (and sometimes much more).
The issue is finding the right plot. The best starting point is to spend some time in the car looking at possible development areas, where cities, towns or villages could be expanded without too many logistical problems.
The next thing to do is get friendly with your local planning office and find out if there are already expansion plans or if they have been highlighted as a location for some of those new homes. If they have you could be on to a winner. Find out who owns that land you think is a banker and make them an offer; you never know they may just bite for a good price per acre in agricultural terms. Just don't let on you have loftier plans for it!
Has anyone else had experience of buying land for this purpose?

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