The Pros and Cons of Investing in Land

There are many ways to make money, and passive income is an attractive idea to those not wanting to be slaves to the regular nine-to-five jobs. Think about it: Who wouldn’t want to sit back and let their money work for them? One way to do this is by investing in land. But how safe is it? Here we look at some of the pros and cons.

PROS

With cities filled to bursting, investing in land and building has drawn the attention of many. Not only could you be setting-up your future home in your dream location, but savvy resells can end up earning you quite a financial gain.

In order for this endeavour to be fruitful, careful planning and research must be conducted before any money is paid out.

Look into where is the best location to buy. This is generally an area that is expected to be in market demand in the near future. Monitor the market and determine when you can obtain it for the lowest possible price. Talk to experts and those in the industry to find out what legal loops you will need to jump through, including obtaining planning permission. This is a very important step in the process, and can dramatically increase the property’s value should you wish to resell – or build for yourself.

Developing the property of reselling it at a later date is another major benefit of investing in land. Once an area is deemed to be attractive to the market, you may find yourself with competing and enticing offers from potential buyers.

CONS

However, as with any endeavour, there are downsides to investing in land.

You are unlikely to break even or make a profit if you end up choosing the wrong piece of land to purchase. If people are not in the market for property in the area, or perhaps the land costs too much in maintenance, it can turn out to be a costly mistake. This can also occur if planning permission is denied.

It is therefore always best to cross all of your t’s and dot all of your i’s before taking that first big step.

One of the biggest risks that comes with attempting to flip your purchased land is that those on the market will not be interested. This can be a big loss if you have developed and built on the land, or a smaller loss if you are simply selling the land with planning permission.

You also have to take into account that investing in land is not going to pay any dividents in the short term from your capital, which you could acheive with other, safer investments.

As with any financial endeavour, investing in land holds a mix of pros and cons – or risks and rewards.

About Us

Slater Forbes are one of the leading property investment companies specialising in off-plan property

20 Years Experience

Please note that Slater Forbes Investments is not authorised or regulated by the Financial Conduct Authority and is not permitted to offer financial or investment advice to UK resident investors, whether or not the intended investments are regulated or unregulated. We strongly encourage all prospective purchasers to consult an FCA-authorised Independent Financial Adviser before committing to any form of investment. This is not an offer to participate in a collective investment scheme as defined in section 235 of the Financial Services and Markets Act (2000) and Investors will not have access to the Financial Services Compensation Scheme or the Financial Ombudsman Service. This website, videos and documents referred are intended to provide general information concerning the proposed development, construction and the management of ”The Development’. The information provided has been prepared in good faith and to give a fair overall view of the Development. Photographs and electronically generated images, furnishings and accessories featured are for illustrative purposes only. All information provided by us at our web site or otherwise is provided on an illustrative basis. This email is for the sole use of potential business partners and/or prospective purchasers. We recommend that all appropriate commercial, tax and legal enquiries and advice is taken before entering into a legally binding contract to purchase a property forming a part of the development. All investments attract a degree of risk and Slater Forbes encourage all clients to undertake their own due diligence. Property prices can fluctuate and the value of your investment may go down as well as up. Prices and financial illustrations are provided as guidance and are examples of the possible discounts, yields and returns that investors could achieve. Copyright in and to this website and documents and videos referred belong to Slater Forbes, which is a trading name of Green Key Sales and Lettings Ltd, which is a UK registered company no 10037602.