Find out what’s happening in the property investment arena both in the UK and internationally
Ploughing Money In To A Land Bank
May 13, 2009Article by Ray Withers
Land banking is a scam as old as the hills that are often sold to unwary investors who will never see a return on their investment. The Financial Services Authority has vigorously chased scammers offshore – but they are still lurking out there ready to dupe those with more cash than sense. Spotting the difference between a land banking scam and the real deal is straightforward if you know what to look for – walk away if:
- If the seller is based offshore
- The seller cold calls you on the telephone
- The story is the need for housing outstrips supply of building land and if you buy now you get in ahead of the rest for a low, low price
- The land offered is almost certain to gain planning consent
All these ploys are used by slick crooks the world over to part the innocent from their wallets. Nevertheless, land banking can be a profitable investment when conducted by reputable business and not a fly-by-night snake oil salesman.
Some of the world’s largest companies land bank – especially major retailers like Tesco and many household name construction firms, especially house builders. Some genuine land bank schemes offering decent returns on investment are also available from specialist UK property consultants.
For instance, Property Frontiers, of Oxford, is selling a few plots of prime South Carolina real estate
Fairway Residence is a gated resort community set in the heart of the established Island Green Country Club at Myrtle Beach. Investors can secure a building plot on the exclusive gated resort at a pre-launch price of £21,000, exclusively through Property Frontiers. The plots offer the opportunity to either land bank or to construct a luxury home and take advantage of the uplift associated with property development.
Investors will have the option to develop their plots through a joint venture between Property Frontiers and one of South Carolina’s most experienced developers, Tower Developments. Options will include three and four bedroom-detached houses.The difference between this scheme and many others is the development site is not just bare land divided in to plots. The infrastructure – roads, mains supplies and other plots – have already been developed and planning consents are in place.
For more information contact Property Frontiers on +44 (0) 1865 202700.