Land-Banking through various companies claiming that returns of 200-300% can be made!

[thomsk]

There appear to be various companies claiming that returns of 200-300% can be made ( no guarantees of course! ) through land-banking, before planning for residential or commercial building has been approved.

Some companies reckon that this return could be expected to be made within 3-5 years. If planning is not approved, the land simply goes up by around 2-3% p.a.

There is obviously a HUGE emphasis being put on the fact that planning must be given by the relative authorities.

Rather than listen to the usual expected sales blurb from these companies, I thought I'd ask has anyone in this forum actually invested in land-banking in such a way, and made profit ( 2-3% or 200-300% )!

I am assuming any replies won't necessarily be posted by employees of land-bank firms.

 

[Guest119]

Re: land-banking through a companies

This issue has been debated on this and other forums many times. Basically, these companies are doing nothing illegal but <take advantage of..edited by moderator> naiive investors.

Check out

www.propertyscam.org.uk

If you want to buy land on the off chance it might get planning permission in the future, buy a field tourself, not just an overpriced piece of one.

 

[thomsk]

Re: land-banking through a companies

I wonder what the reckoning is on this, then - land in canada....

[broken link removed]

Anyone investing?

 

[hythorn]

Re: land-banking through a companies

it is standard operating policy in Poland to buy a chunk of a farmers field at normal market rate not some overinflated rate and wait three years for the prices to treble. planning policy is far less draconian than in the UK. if you own a piece of land and want to build a house on it, nine times out of ten you can.
the secret is to make sure that there is an electricity and gas supply nearby as the cost of having to dog leg the gas pipes across 10 km of somebody else's land is a bit prohibitive.
what really helps is if you are lucky enough to have friends on the town planning office who can tell you which green field areas are going to be developed for sure. Not that I would ever admit to knowing anyone like that of course
if anyone is interested PM me for details I can put you in contact with someone who might be able to help

 

[10crew]

Re: land-banking through a companies

I've been looking into this investment as well - mainly b/c I can put it into a SIPP so there's the obvious tax benefits...I too am a bit hesitant b/c it is my only speculative investment (other than the stock market which has never been kind to me). It all hinges on planning permission and though the location near Halifax is ideal for that type of project, it could all fall through (regardless of what the sales agents tell you). At least you'd own the land I guess which is allegedly independently valued...and Halifax is not a bad place to own an acre in any case. Basically it seems like it all comes down to whether you believe they'll get permission. I have about a week to decide whether to go through with it.

 

[DonKing]

Re: land-banking through a companies

You've got to ask yourself, if this is such a good opportunity, why does a Canadian developer have to come to little ole Ireland to find punters?

If you're going to get into land speculation, then you need to be doing your own independant research and as previous posters said buy your own field which at least has utility services in close proximity.

The last thing you should be doing is forming an opinion on this type of speculation based on the sellers brochures, websites and sales patter.

I approched one of these English companies flogging plots at one of the Property Exhibitions in Citywest. The guy was very slick and if I wasn't so experienced and aware of the issues he may have convinced me. Typical sales man, when I mentioned the possible negatives, he glossed over them or even tried to ignore my comments.

There are plenty of links on this forum and other websites dealing with these type of land deals. Make sure you have a good look at them.

I'd stay well clear of this deal if I was you.

 

[10crew]

Re: Land-Banking through various companies claiming that returns of 200-300% can be m

For those interested, there appears to be a more in depth discussion of this investment on the Motley Fool website: [broken link removed]

 

[brandy]

Re: Land-Banking through various companies claiming that returns of 200-300% can be m

Hi
Do not consider these chancers trying to sell you land.

Remember United Land Holdings ULH in the uk. They were closed down by the DTI in the uk but not before they had taken alot of money from many UK & irish investors. I met them in 2005 & 2006 in City West & also in the Radison in Galway. They were ex window salesmen that set themselves up as Land Banking experts (Con Men) Another large Uk company that were very prominent at City West exhibitions have also been closed down in the UK.

Be careful as the same salesmen show up with other companies spinning the same story.

These companies are now in Liquidation and investors have lost all their money.

Stay away from Land banking everywhere.