LAND INVESTMENT

UK Land - low risk and high rewards

Land can be considered a low risk investment and remains one of the major secrets of the world's wealthiest investors. In fact, many of the world's wealthiest investors have become rich from land investments.

The facts about UK land growth

In the last 20 years UK average land values have increased by nearly 1,000% and growth in the last year exceeded 30%. Consider that the average growth - with careful selection of land plots, capital gains achieved by astute investors have been much higher.

1. Why invest in land?

Unlike equities, the capital growth of land investments is attractive and so is the downside risk:

Land is a tangible asset
Long term capital growth
Once planning permission is achieved your investment multiplies

UK land looks set to increase further in value, as the population continues to expand and house building is required at a growing rate.

At one time land investment was just for the wealthy. Today, there are a number of companies helping smaller investors select plots of land to buy, and investments typically start at about £10,000.

Gordon Brown promises 3m new homes

www.guardian.co.uk/politics/

Why Towers Property Development?

All our land is exceptionally located, close to existing residential developments, usually provided with local amenities. Our team of planners, developers and land specialists research very carefully when looking for the next strategically located piece of land.

Once planning permission is achieved the value of your land rises dramatically. Conservative estimates set this at 300-600% in 5-6 year depending on the Local Development Framework (LDF) See: FAQs

Buying undeveloped land with a view to build upon can reap enormous profits, and given the supply and demand in relation to the UK's housing needs, it is not difficult to see why.

Land increases in value in 2 ways:

By increasing its value
By land gaining permission to have houses built on it

The advantages are:

Land is real
Unlike shares, land is a tangible asset
England is a small country, with a great percentage of the population wanting to live in the South East
It is a cheap way to invest in property
A semi-detached house in the South East can cost at least £250,000. A residential-sized plot of land, close to an existing residential area can be bought from around £15,000

Following this, a £15,000 plot of land in the South East which gains planning permission to build a four-bed-roomed detached house, could be worth in the region of £200,000 to a builder wanting to build a £600,000 house on the land.

Source: Alvin Hall/ BBC