The Benefits of Low Cost Land Investments

Posted by Jude Buttle on Monday, September 22, 2008

Buying land is a great entry level strategy for those investors who are looking to achieve a good return on investment but with the minimum amount of stress.

Land investments are a relatively low risk, affordable and secure bet for the long term and provided you pay the right price for a plot in the first place, are virtually failsafe.

One of the most obvious benefits of land banking investments is that the initial outlay is normally lower than for an off plan or completed property investment.

Not only does this allow people to invest who would otherwise not be able to afford to get on the investment ladder, it also allows portfolio investors to diversify and acquire pieces of land in multiple regions, countries, or even continents.

Ease of purchase is another big bonus. In the absence of a mortgage, the administrative burden can be significantly lower than with other types of property.

There is no need for a valuation and there are no concerns about build quality, standard of finishing, fittings or furnishings.

Once the transaction is complete, land is easy to manage. There is no worrying about void periods, no need to keep an eye on tenants and very limited costs of servicing the investment, usually limited to an annual land tax.

There are no running repairs, redecoration or refurbishment needed and no concerns about rent meeting debt obligations.

Emerging markets are a good choice for land investments and Brazil has increasingly come on the radar for speculators and investors alike.

Many areas of the country have been targeted for development, offering investors from overseas the opportunity to buy individual land plots, often with outline planning permission already in place.

There are normally two options for land investors. Firstly, investors can choose to "land bank", in which they hold on to their plot of land whilst the final planning process is completed and the value accelerates.

Alternatively, plots can be built on, with a view to selling or using the finished unit, which sees the investor acting almost like a developer.

This route can return a significant profit, provided that the right price is paid for the land and also provided the construction is of a type, price and quality suitable for the secondary market.

A good example of a project that offers investors both options is the Sonho Verde Residence project in Paripuera, Maceio, Northeast Brazil.

The land has already secured planning permission in a private and secluded gated community and with prices ranging from £9,180 to £28,150, this is an opportunity too good to miss.

The development is in a great elevated position with stunning views over the Coral Coast, a beautiful stretch of palm-fringed white sandy beaches lapped by turquoise waters.

With more than 300 sunny days each year and an average yearly temperature ranging from 65 F to 95 F, this is an idyllic tourist destination that is beautifully maintained and understandably popular with national and international visitors.

Following a meeting at the ADIT Nordeste Invest Conference, the project is being brought exclusively to the UK by E-Quity and TheMoveChannel.com, who are working with the developer to complement the strong domestic sales effort by appealing to the international investor market.

For more information on this and other land projects, please visit brazil.themovechannel.com/

Picture by astkam

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