Figure out at what age you want to retire, but be realistic when deciding this factor. Early retirement is a great option, but if you don’t have time to plan for it, it is much better to wait a few extra years.
View this video from a Financial Planning Insider that outlines why you will never be able to retire with your retirement account in the stock market, and shares a secret that your financial planner doesn't want you to know.
Land Banking is making a come back today as an alternative to stocks, or mutual funds. This investment option returns profits and principal to you after three to five years depending on how soon the land can be scheduled for development. The concept of land banking is actually not new, and can be a vital cornerstone in your real estate or retirement investment portfolio.
Returns on real estate investments vary greatly in the amount of time it may take depending on how the investment is handled; from flipping a house in a matter of weeks, to requiring several years in the case of purchasing raw land awaiting development. Land banking is considered a long term investment, and as a result returns can often be calculated as much as four to five times the amount of capital initially invested into the property.
Land banking simply involves purchasing land, which has not been submitted for planning consent, ahead of expanding urban construction. The price of raw land, not immediately scheduled for urban development is relatively low. The land rises in value considerably when the city planning committee grants permission for the land to be developed.
The secret to making big profits in land banking is to simply buy land in specifically targeted areas ahead of the path of future development.
Once the development process begins it typically takes three to five years to get approval from the city. The developers then purchase the properties from the investors at many times the initial purchase price providing a very lucrative exit strategy. Be certain to ask your land broker about the time frames they expect, and percentages of return they have calculated. Be sure to consider, and balance, the potential reward against the risk of loss.
A land banking strategy is a long term investment where your capital is secured by real estate. Estimating the time of exactly when the land may be slated for development could be a factor. But, as long as the timing involved is understood beforehand then land banking can be used as an effective form of real estate investment which you can use to supplement your existing investment portfolio.
Be sure to watch the video at the top of this page, and call the toll-free number to claim your free consultation.
Add this page to your favorite Social Bookmarking websites
