Land banking is the practice of purchasing undeveloped land with the intention of holding on to it for a period of time and selling it at a profit at a future date.
There are different real estate investments you can do and make good profit from including renting. However land banking is the only real estate investment strategy that requires zero time and effort. All you have to do is make good buying decision and then wait. And in a few years or more cash out big.
Instead of depositing your money in the bank where you make like 3% in a year, why not simply deposit your money on landed properties where you can get between 25% to over 100% appreciation in a year.
Anyone can do land banking and flipping and make good money from it. But you have to be patient to leave the land to triple its price before selling. And the years does seem to fly by quickly when you’re not paying attention.
- Land Banking Strategy that works
For you to be successful with land banking, you have to apply a strategy to it and the strategy is simple. Only buy your land in an area that has indication for a good price appreciation within a few years, where there is going to be future rapid development, where things like bridges, road, airport, commercial infrastructure, commercial activities, business etc. are likely to come up.
- How do you know a land that has potential for high return on investment?
Look at the financial status of people who live in the area. You can easily tell this by checking the current cost of housing there. Be careful here though, the higher the cost of living doesn’t always mean better appreciation. You want to make sure that the area isn’t already at its peak for property appreciation where it can now only appreciate with 1% or less every year. Example of such areas are Maitama and Asokoro. Investing in those areas now will live you in debt and give very little returns. The time you should have bought into those areas was 10 years ago, now it’s too late.
The places you should be investing now with very fast growing cost of housing is lugbe (Airport road), Kuje, Gwagwalada and Kurudu/Orozo Axis.
For example rent in maitama cost about N10 million per annum for a 3 bedroom duplex and about N15 million for a 4 bedroom duplex. And property prices there is N90 million for a 3 bedroom and N110million for a 4 bedroom. This was as at july, 2019.
Fortunately for you there are still some undeveloped lands and developers are picking them up quickly now and some are starting to develop. Even though some will think they are expensive now they are only just starting.
If you buy now you are positioning yourself for a quick high return on investment. I guarantee you!
- Why the jump in price in such a short time? The answer is Location and Estate development.
The only reason the undeveloped lands don’t currently sell for N30-40milion is because they are not yet developed. But once they start to develop them, they will jump in price. So there is still a lot of room for Ballers’ Court Estate price to grow. With the infrastructural and amenities planned for it within the next 2 years it should compete with Crown COURT Estate Utako which is rated as one of the most expensive estates in Abuja. With the apartments valued at ₦55 million and costs ₦5 million to rent, while the duplexes are valued at ₦78 million each in price.
Truth is, this kind of quick high returns doesn’t happen every day. But it can happen with every of your land investment if you’re very strategic about the lands you buy, which as I have said is necessary to do really well with land banking and flipping. If you want this to happen for you with every land banking you do then choose a good location and buy from a progressive estate developer like Grace View Homes and Properties.
If you want our advice on how you can invest in real estate and start your journey to great wealth, feel free to call us on 07049070576 or 0818930200807049070567