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Land
Investments
When looking at investments for long-term capital growth potential, investments in UK land have returned stunning rates of growth coupled with low risk.
Overall prices (farmland) have increased by up to 30% in the last 12 months and 130% since the early 1990s with an average 920% growth in the last 20 years.
An Attractive Alternative Investment
When looking at investments for long-term capital growth most investors consider mutual funds, investment trusts, stocks, equities, and hedge funds. However, the fact is that land has shown better average growth with less downside volatility. This makes land a solid investment for the conservative risk conscious investor.
Once the preserve of large institutional investors, this exciting market is now open to smaller investors.
Why Land Has Such Great Potential
When looking at investments for long-term capital growth potential, we need to look at the supply and demand equation.
Land has all the ingredients for demand to exceed supply and see land prices climb higher in the coming years.
The Case for UK Land
When looking at investments for long-term capital growth potential, it is clear that of all the countries in the world to invest in land, the UK is one of the most attractive for the following reasons:
1. Rapid Population Growth - The population of the UK in 1981 was 56.2 million. In 2001, the population had increased by about 2.6 million to 58.8 million inhabitants.
2. Immigration - In terms of immigration, there is the granting of entry to the UK, of over 170,000 people per year. This constitutes over 60% of the annual population growth. Therefore, at current rates of growth the UK can expect to see at least an additional 3.4 million inhabitants within the next 20 years.
3. Social Trends - There is also a rising divorce rate in the UK. In 1980 and there were approximately 148,500 divorces throughout the UK In 2000 this figure climbed to nearly 200,000, an increase of over 30%. Furthermore, more people are staying single by choice and getting married later in life.
A recent treasury report stated that: In the next 17 years, with the rising population and increased lack of affordable housing, the UK will need another 1.5 million homes with 300,000 required in and around London alone.
Essentially, this means that there is a need for massive scale housing development in the UK at present and for the near future.
This will see land remain one of the most attractive investments for long term capital growth.
The Demand for UK Land
The building of much of this housing is to be on brown field sites, or redeveloped areas, this land is in short supply and is expensive to purchase and develop.
The priority to build new housing will necessitate the reclassification and development of green belt land throughout Britain.
Land Banking – The Key to Long Term Capital Growth
Land banking simply involves the acquisition of land, which does not enjoy planning consent, in advance of expanding urbanization. When urban expansion occurs the land rises in value with the granting of planning consent.
The way to make big capital gains in land banking involves buying land in specific areas, in the hope of future development.
With the granting of planning permission, a significant capital gain is possible.
Land Investments for Long Term Capital Growth
Good past performance with low risk and the prospect of good future capital growth, makes investing in land for longer term growth an attractive option for all investors.
Low
Risk Investments - Protect Your Capital
As economic growth slows and oil prices remain high, we are seeing increasing volatile moves in capital markets.
So what is a low risk investment that is not linked to the stock market that can give you great gains and low risk?
Here we will outline a low risk investment that’s ideal regardless of what capital markets do.
The low risk investment is overseas property.
Now, you may never have considered this type of investment before but a boom is underway, that can give you far better capital growth potential than stocks, with less risk and its cheap and easy to do.
Consider these gains
Investors who took a chance and invested in coastal property in California, Hawaii and parts of Florida turned a $30,000 investment 30 years ago into over $1,000,000 today.
The boom in US real estate has slowed, but there is a market overseas that offers investors the chance to make even bigger gains. Why?
Because, US buyers are pouring record amounts of capital into Central America which is just a 3 hour flight from the US, however property can be bought for 70% less than in the US and demand is surging.
Huge gains potential
The boom is already underway as the 2 examples below will show and this low risk investment is producing great capital growth with low risk.
Investors that purchased $30,000 of property in the town of Jaco in Costa Rica just 15 years ago are now worth as much as $750,000.
Another example of growth potential is the Marriot Corporation which built the Los Suenos Resort and pre sold 50 condos of 2000 square feet for $250,000.
The next year Marriot sold another 50 at $350,000. Now this years top end units are being sold between up to $850,000!
Will the boom continue?
The answer is yes as Americans will continue to buy to get an alternative to expensive US Real estate and as with any real estate boom it lasts for decades and this one will be no different.
It’s easy for anyone to do
This investment is easy and it’s cheap to do and it’s also very lucrative.
If you do invest then you get the same rights as residents, property tax is minimal, the investment is very tax efficient and buying and selling to bank your profits is easy.
A safe haven investment
As other investments suffer from global problems, these same problems will boost the demand for safe haven real estate investments in Central America, with Costa Rica being the premier destination.
High gains and low risk
Where else can you get 30 – 100% gains per annum with low risk, in an investment that’s simple to understand and easy to do?
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