UK land represents some of the best investment land available. These eight facts, presented by a land planning and land investment expert, will tell you what wise investors already know about investing in land.

1) Investing in UK Land is a real asset

You can see, use, and most importantly, build on investment land. You hold the legal title deeds to your investment land as surety. There are no complicated concepts in land investment, just a burgeoning demand for a finite amount of UK land.

2) Investing in Land yields strong returns

A finite supply of UK land partially explains its historically rising value, and implies it is unlikely to depreciate. Mark Twain said, “If something is unable to be manufactured and the underlying demand for it is constant, then its value will tend to rise.” Demand for UK land is, at the very least, constant. The property market increases reflect soaring demand for houses from an ever-growing population. Therefore, investing in UK land offers strong returns. It is reasonable to achieve the equivalent of 30-35% annually in a 5-year land investment project. This equates to compounded returns of around 400-450%. Such returns are hard to realise with other UK investments.

3) Land Investment is an investment in “the real world”

The value of property assets is clear and transparent. This is not the case with all UK investments, such as derivatives. Even with traditional equity investments, the average investor rarely knows whether the equity is genuinely under-valued (buy signal) or over-priced (sell signal).

Stock market scandals resulting from accounting malpractice highlight the limitations of the average investor’s understanding of their exposures. UK land investors are usually already active players as homeowners, so they already have some market experience.

4) UK Land has a lower entry point compared with buy to let

The price tag on a typical UK property is around £200,000. A plot of UK investment land that offers substantially larger relative returns is priced at just around £10,000! Remember that the Iron Law of Investment is diversification, commonly known as “Don’t put all of your eggs in one basket.” Because land investment has a significantly lower entry level than property, wise investors can more easily practice the Iron Law.

A typical UK investment requires around £200,000 but a diversified land investment portfolio could be created for less than £50,000! Investing in land, with its lower entry point, therefore gives the investor more ‘chances’ to pick a lucrative UK investment. However, it is by no means essential to build a huge portfolio of land investments: the key considerations for anyone considering investing in land are two-fold: choosing good quality UK land, and choosing a good land investment provider.

5) Investing in Land capitalises on UK’s housing crisis

Investing in land is the most lucrative means of capitalising the UK’s housing crisis. Supply pressure is being felt in both affluent and less affluent areas up and down the country. The number of UK council homes has fallen sharply over the past 25 years, while homes rented from social landlords has increased dramatically, and owner occupation has doubled.

The combined effects of the above factors make investing in land a sensible choice when allocating assets in a UK investment portfolio.

6) Investing in land is passive and hassle-free

All UK investments demand careful consideration when entering and exiting the investment. However, some UK investments also demand active management during the life of the investment (e.g. equity and commodities trading). Land investment, on the other hand, is entirely passive, which makes it popular with many investors. Investment land is easily managed and investors should be fully apprised of their investment progress.

7) Land Investment has low volatility of returns

Volatility of land investment returns is an important consideration. It refers to the extent to which the value of the investment rises and falls in its lifetime. Less volatility makes it easier for the investor to know their wealth at any given time.

UK Land investing is not volatile and is actually relatively predictable. The value of a land investment tends to follow a linear path: in a 4-5 year project, the value of the land investment in years 0-3 will tend to rise relatively modestly by the effect of ‘organic growth’, (what we commonly term ‘inflation’). The land investment typically rises sharply in value during years 4-5 (should permission to build on the land be achieved). The land investment may be divested of at this time for maximum profit.

The wise investor knows that they can more easily estimate the future value of their portfolio with land investments than with other asset classes. The land investor can plan for critical future funding requirements such as school and university fees, retirement planning, and health-care expenses. More concrete future planning may not be so easy if the investor has exposures that are more volatile than investing in land.

Investing in land creates real wealth by compounding returns

As we have seen, returns of 400-500% in a 4-5 year project cycle are entirely possible if an investor chooses good UK land and an experienced land investment provider. Therefore, an initial investment of £10,000 could grow to £50,000. If these returns are then reinvested into another land investment project with comparable returns, then the initial land investment could grow from £10,000 to £250,000.

Some of the most successful individuals are enjoying the financial benefits from compounding in land investment. This approach requires a slightly longer-term view, but the rewards are significant. Compounding in land investment can offer more than just good investment returns: it can create very substantial wealth!

Knowledge about the commercial real estate is the only way to succed in the Industry. There is really no way around this. Just like anything else, the more that you know about commercial real estate the better off you will be if you are trying to make money. But there are a few tips that can help you succeed with commercial real estate.

Evenhough you are knowledgable about commercial real estate, take the time to read some tips so that you may find that you are in an even better position.Here are three tips for commercial real estate success.

1. Never buy any piece of commercial real estate unless you are 100 percent comfortable with it.

Eventhough you are aware of what you are doing, any doubt in your mind is not a good thing. Until you are comfortable with the move that you are making, you owe it to yourself to take a step back. Rushing into a purchase is never a good idea; and this is especially true when it comes to commercial real estate.

2. Many buyers make the mistake of purchasing commercial real estate that they cannot afford. Do you know why they do this? Many people think that they will pay for the loan from the money that they make in rent each month. This may sounds good only in theory. what will happen if you do not find anybody to rent the property right away? Even if you are going to make money by renting commercial real estate, you need to make sure that you can cover the costs each month on your own.

3. Shop around before you settle on one property. Chances are that if you have found one piece of commercial real estate in your area that there are plenty more to choose from as well. Instead of only looking at a couple of properties, check out as many properties as you can. This will give you a basic comparison which will in turn allow you to get the best deal available.

These three tips should help you to succeed when buying and dealing with commercial real estate. Remember, when you take your time and learn about the industry you will be much better off.