Land banking is an old investment strategy that can generate a lot of return on investment. Here I list out 5 benefits of land banking and why you should start now.

1 Appreciation of the land’s value

Land banking is a good investment strategy to the extent that the value keeps increasing: this is true globally. The cost of acquiring land, as observed, always goes up and hardly ever comes down.

The land is one of the assets that have the potential to appreciate over a more extended period. Investing in land, that has high development potential at the current or lower market value ensures maximum returns to the investor.

2. Minimal Start-up capital

Vacant land is generally the cheapest type of real estate you will find. It’s not until expansion and development occur that property begins to increase in value.

Hence, if you know where to look for great deals on land, it requires minimal startup capital to get your business up and running. It’s a type of investment that doesn’t necessarily need to have millions of naira.

3. The land is cheaper to own as a Long term investment.

The land is relatively abundant and thus cheap in some developing parts of the country like Ibeju Lekki, Epe (Lagos state), Mpape (Abuja). As an intelligent investor buying this vacant land offers you a more accessible and more affordable way into the real estate market.

When buying a piece of land for the right price, Land banking can be the type of investment you use to keep your money stored somewhere for a while. Your asset sits quietly in the background, costing you almost nothing and silently increasing in value.

4. Lower competition
In the real estate investment niche, there’s low competition. Most people (especially those with a lot of investment capital) are focused on the shiny and glamorous aspects of real estate investment – condo buildings, developments, house flipping, and multi-units.

If you looking to buy undeveloped land, then a significant advantage is the smaller competition you will face.

5. It is a finite asset
One of the biggest reasons you should invest in land Is that it is a finite resource. New residential high rises will continue to be built, but only a limited amount of land is available for ownership.

All this and many other benefits make land banking a very good investment you should consider going forward in other to secure your future.
visit www.redocint.com to get started today.

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