Many overseas investors are looking at the potential for investing in UK land. Land ownership in the UK can give high returns, and also offers low risk - making it a solid investment for long-term capital gains. Here we look at the opportunities of investing in UK land - and some of the pitfalls to avoid. There are three basic categories of UK land, and there are opportunities countrywide for land investing: 1. Brownfield land: Generally found within urban areas - land that had previously been used, i.e. it was residential, industrial or commercial land. 2. Greenbelt Land: This land Green belt forms a buffer zone around urban areas - to provide open space. 3. Open Countryside: This land is free of all development. Which Category Is Best? The UK Government says that a record 70% of all new building is now on Brownfield land. This percentage is regarded as unsustainable. To continue to build on Brownfield land will lead to congestion and over crowding in cities - and put a strain on infrastructure and services. This means that more and more development will occur on greenbelt land - despite the objections of conservationists. So, Why is Investing in UK land considered such a Good Investment? Its simple supply and demand - with demand for land higher than ever for building purposes - and its leading more investors than ever before to invest in UK land. Here are the six main reasons for growth: 1. Up to 3,500,000 new homes are needed over the next 15 years - increasing to 4,500,000 new homes needed over the next 20 years. 2. Over 90% of houses in towns throughout the UK are unaffordable for first time buyers. 3. The UK is one of the most densely populated countries in the European Union - and the UK also has the biggest influx of migrants from abroad. 4. The UK has some of the oldest housing in Europe - and a shortage of affordable housing for first time buyers. 5. Since 1970, the demand for new homes has increased by approximately 35% - but house-building rates have dropped by 55% in the same period. 6. Since 1997, the UK Government as increased the average number of new homes built per hectare from 25 to over 40 Making Profits by Investing in UK land - and a Caution! Investing in UK land is all about finding the right location - and this means obtaining land for which planning permission in the future looks a strong possibility. There are many companies out there who can help you - but be careful - only choose companies that have a track record of buying correctly. Remember, if the land does NOT get planning permission, then you wont make big capital gains. Be Aware! There are many companies selling worthless land at inflated prices and telling you the land is bound to get planning permission! When investing in UK land watch out for the scam artists - and seek out the long established companies. Investing in UK land is all about taking a long-term view, and finding the right locations. If you do get the location right, then your profits can be stunning. |
