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Home / Finance / Real Estate
Investing in UK Land – An Average Growth of 920% over 20 Years
By:Stephen Todd
Many overseas investors are seeing the potential for investing in UK land. Not only does land ownership in the UK offer high returns, it also offers low risk, making it a great investment for long-term capital gains.
There are opportunities countrywide for investing In UK land:
· Farmland
· General agricultural plots
· Wooded areas
Land developers are snapping these up.
So, why is land such a good investment in the UK?
Why UK Land Prices are Booming
1. There is a need for up to 3,500,000 new homes over the next 15 years, rising to 4,400,000 new homes over the next 20 years.
3. 90% of towns in the UK are unaffordable for first time buyers.
4. The UK is the second most densely populated country in Europe and has a fast rising migrant population
5. The UK suffers from some of the oldest housing stock in Europe and a huge shortage of supply of affordable and mid priced housing.
6. Over the last 30 years, the demand for new homes has increased by 30% whereas over the same period, house-building rates have dropped by over 50%.
7. Since 1997, the Government has increased the average number of new homes built per hectare from 25 to 40.
Categories of UK Land
There are three basic categories of UK land:
1. Brownfield land: Generally found within urban areas - land that has had a previous use such as residential, industrial or commercial.
2. Greenbelt Land Green belt forms a buffer zone around urban areas.
3. Open Countryside: Are areas of open country free of development and therefore free of economies capable of supporting development.
Which Category is Best?
The Government says that a record 70% of all new building is now on brown field land. This figure is regarded as being unsustainable, as to continue to build on brownfield land will lead to overcrowding in cities, which will impact on existing infrastructure and services within these areas.
While opportunities exist in brownfield land, greenbelt land offers the biggest gains, and it is inevitable that over the coming years considerable areas are developed.
You should not invest in open countryside, as capital growth potential is poor – land that is ready for developing is a much better investment.
Capital Growth in UK Land is all About Location!
Owning land for speculation is all about getting the right location, and this means obtaining land for which planning permission is obtainable.
If you are looking at purchasing land in the UK as a domestic or overseas investor, you will want to find an advisor who can help you. Many companies provide this service and they can help you find the right location for capital growth.
You Don’t Need a Big Investment to Participate
Generally, small investors can participate in this investment as plots of land can be subdivided into parcels and sold to many different speculators, who can all take advantage of the growth potential of a single development.
Investing in UK land - The Perfect Low Risk, High Reward Investment Opportunity!
If you take into account that UK land prices are rising, downside risk is relatively low and growth potential is high, you have the perfect investment to diversify your portfolio away from traditional asset classes such as shares or bonds.
Article Source: http://www.dailynewarticles.com
To learn more about investing in UK land and other low risk high return land investments please visit our web site: http://www.lpgroupinternational.com
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