LANDBANKING

August 11, 2023

Your knowledge of Landbank and how it works is directly tied to your wealth creation
and financial freedom. Land banking provides a stable environment for you to grow your
cash and its a guaranteed path to building equity and Transgenerational Wealth.

 

I’m sure You might have heard of Landbanking as an investor, a realtor, agent or
consultant?

What exactly is Landbanking if I may ask.

Kindly drop your comments in the
comment session if you want to share your thoughts on the subject.

Now If you are looking at what Landbanking entails and how you can profit from it, then
this article is just for you; this article will help you to understand the right definition of
Landbanking and how it works to help you generate that financial freedom you have
always desired.

Simply put Land banking is a system of acquiring land in underdeveloped or developing
locations for investment purposes and keeping it for use in the future. It is putting or
investing your money on land rather than saving it in the Bank where you earn little or
no returns at all.

Now lets talk about Why you need to Land Bank

Choosing a location for land banking is one of the biggest challenges you can surmount
and at the same time, it is the biggest indicator of your success in this decision.
The essence of Land banking is aimed at creating financially secured environment that
serves as an hedge against inflation and an investment vehicle for long-term
investment.

Land banking also serves as a tangible asset that can either be liquidated for cash,
leased out for cash flow, used for joint ventures purposes or a real asset passed on to
the next generation.

Today there are lots of players in the real estate industry than in the past, this has
helped in influencing how properties are viewed and presented to the market. The
emergence of real estate companies has motivated and enlightened a lot of individuals
to be more knowledgeable about Landbanking

Now as a property investor looking to go into Landbanking, you should narrow your
interest down to some key indicators I will be sharing,

Now let’s look at it;

Investment Analysis For Land Banking And What To Look
Out For.

Understanding the use of fundamental and technical analysis when investing in land
banking for the long term gives you two valuable investment strategies you can use for
making profitable investment decisions.

 

As an investor looking out to evaluate an investment decision you should start with a
fundamental analysis of the land, the location, and the market in general. Location is Key
when it comes to Landbanking.

 

Another fundamental analysis you should look out for is
evaluating the company you are buying from, the title, and documentation.

We have written an article extensively on Land documentation in my previous article Important Document You Must Know Before Buying Real Estate do well to read it to get informed about proper Land documentation before buying an land In Nigeria.

 

Another fundamental analysis is comparing the current value of the land and
future price projections around the locations you choose to landbank in. Smart Investors
use this comparison to determine whether a long-term investment in a particular land for
land banking is worth it. E.g Oko Ado.Epe, Eleko.

 

On the other hand, the technical analysis aims to provide insight into the future activity
of the environment where the land is located. Investors using technical analysis feel
strongly that the future value in terms of equity or capital appreciation can be
determined by reviewing economic patterns based on past and current activities.

Reliable real estate companies can provide you with both analyses about land banking
opportunities that can help you with the right decisions before investing. Further more, you should pay attention to what land is being sold, the location, how it’s being sold, who is selling it, and what
the future looks like for that land in terms of equity appreciation.

 

How do you identify Positive Land Banking
Investments opportunities?

If buying land for Landbanking offers you Higher equity returns after a year or a couple of years,
it’s a positive indicator as this will also serve as an hedge against currency inflation.
Positive land banking investments is measured by how much the value of lands you choose to
landbank in appreciates in value within the shortest time possible.

 

Lets talk about the Huge Benefits Of Land Banking
Investments

Land banking investment can result in an array of benefits for you, including more cash
flow, capital to reinvest etc To narrow it down, here are several benefits that land
banking can provide for you.

High profits

Investors that do their due diligence correctly are very much more likely to see higher
returns on investment. In fact, studies show that 50% of land banking investors earn
over 300% return on their investments due to economic activities in the surrounding
area improving the perceived value of the property, and increasing the price of the
land.e.g Ibeju-Lekki; Epe

 

Little maintenance

This investment has very minimal to no maintenance. There’s almost nothing you have
to do after you have acquired a property for land banking.
Less financial investment but large expanse of Lands.
Less capital investment you can own large expanse of lands unlike investing in
already developed location that are sold very extraneously.

Checklist For A Successful Land Banking

Since Land banking considers committing your finances for future gain, there are some
factors that can influence the success of your investment. When investing in land
banking, you need to take an investor’s point-of-view approach.

To do that, here are several factors that you as an investor should consider when pursuing profitable land
banking investments.

1. Determine your investment objective
2. Investigate before you invest
3. Do technical and fundamental analysis

 

     1. Determine your investing objective

Are you investing for the short term or long term? Are you investing for retirement, cash
flow or capital gain?

Land banking is an excellent investment choice for the long term
unless you are forced to sell it due to some emergency.

      2.  Investigate before you invest

Be skeptical. Do your due diligence and investigate before you invest. Research the
company you are buying from properly.

For how long have they been in the Real Estate space and what’s their growth strategy?

What is their track record?

What are people saying about them?

    3. Do a technical and fundamental analysis.

Technical and fundamental analysis helps as a guide before making a decision to invest, they show you what might happen in the short term or long term.

The future value of a land-banked property can be forecasted by looking at the intrinsic
value of the property and the economic activity of the surrounding environment.

Knowledge Is Key To A Successful Land Banking Investment

Success starts with information by actively asking the right questions, listening to the
information you receive from reputable investment advisers, and removing points of
discordance that cause dissatisfaction.

Do that, and your land banking investment decision will cause your equity to grow exponentially.

If you find this article very expository and you are looking to landbank click on the WhatsApp icon on your right hand side and I will personally handwork you to Landbanking in the best
locations that promises huge returns on your investment.

I’m sure you got the best information on Landbanking?

Do well to read my other articles on Successful real estate investing tips that will earn you Huge Returns on your
investment.

Do not forget to leave a comment; your thoughts and questions are helpful too.



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