We often heard that to become rich and wealthy, you must invest; grow your money and make your money work for you.
Sad to say, too many people have lost a lot of money trying to make their money grow, primarily because of poor investment decisions.
Most of us usually opt for the traditional financial banking strategy of “saving” the money in the bank in return of some interest. But what they are not aware of is that, putting money in the bank is not saving at all. In reality, they are actually losing the value of their deposited money. – Why? – Factors like inflation, taxes, charges, economic regression, etc are responsible for losing the value of your savings.
So what should we do then? Is there a solution? Or is there a better option? – The answer is YES!... it is called Land Banking!
Land Banking is the practice of purchasing land with the intent to hold on to it until such a time that it is profitable to sell off for more than was initially paid.
But before you do that, here are few reminders:
1. Land Banking is a long-term investment. Its value doesn’t double or triple overnight. It takes years to profit from this investment, but it is a good hedge against inflation.
2. If you are into land banking for future development, you might as well check the zoning restrictions of the area before purchasing the land. You don’t want to acquire land with some restrictions.
3. When you buy land check also for easement or other claimants. You don’t want to end up less or even nothing.
4. If possible buy areas close to the metro and high levels of economic activity, as well as proximity to water and electric utility services.
What do you think of Land Banking? Is it a wise investment? Are you willing to invest into it?
Send me your thoughts…