When you hear the word \u2018Banking\u2019, what comes to your mind? – Money? – Right.<\/p>\n
But do you know you can \u2018bank on land\u2019 just like you bank on money?<\/p>\n
Let\u2019s make it simpler. I will explain.<\/p>\n
You bank on money by putting it in a fixed deposit and get an interest rate when it matures. Same way, you can \u2018bank\u2019 on \u2018land\u2019 and sell at a higher price in the future for high returns.<\/p>\n
Although not many people are familiar with the term \u2018Land Banking\u2019, it is still a common real estate investment in Nigeria. One in ten persons buy undeveloped land with the intention to resell at a higher price in the future. This act is called \u2018Land Banking\u2019, it basically involves three (3) stages;<\/p>\n
Simply put, land banking is saving on land instead of money.<\/p>\n
Land has a consistently appreciating nature, it rarely ever depreciates and there is always continuous demand for it. When you buy land, it appreciates overtime and you get a high return upon reselling. So, it is a reliable source of investment with relatively low risk.<\/p>\n
Therefore, land banking is an act of buying undeveloped land to keep for future sale at a higher price. It is a form of real estate investment that capitalizes on future infrastructural development.<\/p>\n
Although land banking investment promises high return, it is still subjected to environmental and infrastructural development in the investment area. Consider buying land in an area with potential industrial or infrastructural development. A land with access to good road-network and easy access to social amenities will be a great choice.<\/p>\n
Aside from the projected monetary returns, there are benefits you can enjoy as a land banking investor. This benefits include;<\/p>\n
This is a great source of passive income for you as a land banking investor. You can lease out the land for use on a monthly or yearly rent basis.<\/p>\n
You can cultivate agricultural produce on the land for domestic or commercial purpose before you eventually resell.<\/p>\n
Land banking is an investment that guarantees high returns despite the risks. Land demand continually increases due to various factors such as population increase or industrial growth.<\/p>\n
Unlike some investments that require huge capital to fund, undeveloped land requires a low fund to purchase and maintain.<\/p>\n
Although land banking is a relatively low risk investment, these risks can still affect the resale value of the land. It is important to understand these risks and take necessary measures to counter them.<\/p>\n
Section 21 and 22 of the Nigeria\u2019s Land Use Act restrict citizens to occupy, buy or sell without their governor\u2019s consent. This policy might not only affect the resale value but also the continuous ownership of the land. You must ensure that all necessary governmental policies are adhered to during the land acquisition process.<\/p>\n
\u2018Omo onile\u2019 is a popular term used to address land grabbers in Nigeria. There is always a dispute of ownership when investors find out the land is owned by more than one person. Verify the land availability for acquisition as well as the credibility of the previous owner.<\/p>\n
Investors should examine the intended land for soil contamination due to chemical or agricultural damage. This examination should be conducted by experts to determine any damage on the land from previous use.<\/p>\n
You should understand that infrastructural development might take longer to occur in your area of investment. Short term resell of the land can also affect the price.<\/p>\n
<\/p>\n
For a successful land banking investment, there are factors to consider and procedures to follow.They help you make informed decisions and ensure a secured investment.<\/p>\n
Get the right information about your intended area of investment, the environmental issues e.g flood, associated with it. Fact check if there is any development project for the area by the government or private developers. Also, know the standard market value of land in the area as well as potential increase in its value.<\/p>\n
You can also employ the service of reliable land banking firms to conduct proper research of your investment feasibility. Obtain updated reports on governmental policies, zone issues and projected development for your investment area.<\/p>\n
In land banking investment, there are legal documents to be acquired to validate transfer of land ownership. Some of these documents include but are not limited to;<\/p>\n
<\/p>\n
Land banking investment requires patience, it is not a get \u2018rich quick\u2019 scheme. Financial investment might fail due to inflation but land banking guarantees a return if you follow the right process. Understand the reason you want to invest in land banking, get land in an area with potential development and value appreciation. Do your due diligence by obtaining the right information through reliable land banking agencies. Follow the right procedure during the land acquisition process and obtain all necessary documents.<\/p>\n
Land banking investment has provided many individuals with financial growth and independence, you might just become one of them.<\/p>\n","protected":false},"excerpt":{"rendered":"
When you hear the word \u2018Banking\u2019, what comes to your mind? – Money? – Right. But do you know you can \u2018bank on land\u2019 just like you bank on money? Let\u2019s make it simpler. I will explain. You bank on money by putting it in a fixed deposit and get an interest rate when it…<\/p>\n","protected":false},"author":3,"featured_media":6374,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"om_disable_all_campaigns":false,"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[4,6,7,8,49],"tags":[85,54,225,42,37,62,71,74,58,84,233],"class_list":["post-6373","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-commercial","category-investing","category-living","category-real-estate","category-real-estate-news","tag-realestate","tag-buying-a-house","tag-investing","tag-investment","tag-investments","tag-property","tag-property-management","tag-real-estate-property","tag-real-estate-tips","tag-rental-property-real-estate","tag-sterling-homes"],"aioseo_notices":[],"_links":{"self":[{"href":"https:\/\/sterlinghomesltd.com\/wp-json\/wp\/v2\/posts\/6373"}],"collection":[{"href":"https:\/\/sterlinghomesltd.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/sterlinghomesltd.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/sterlinghomesltd.com\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/sterlinghomesltd.com\/wp-json\/wp\/v2\/comments?post=6373"}],"version-history":[{"count":8,"href":"https:\/\/sterlinghomesltd.com\/wp-json\/wp\/v2\/posts\/6373\/revisions"}],"predecessor-version":[{"id":6382,"href":"https:\/\/sterlinghomesltd.com\/wp-json\/wp\/v2\/posts\/6373\/revisions\/6382"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/sterlinghomesltd.com\/wp-json\/wp\/v2\/media\/6374"}],"wp:attachment":[{"href":"https:\/\/sterlinghomesltd.com\/wp-json\/wp\/v2\/media?parent=6373"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/sterlinghomesltd.com\/wp-json\/wp\/v2\/categories?post=6373"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/sterlinghomesltd.com\/wp-json\/wp\/v2\/tags?post=6373"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}