What is Land Banking?
Land banking is the process of acquiring raw land in the path of growth. Historically, some of the largest fortunes have been made in land banking by such well-known names as the Vanderbilts, Rockefellers, and in California, Leland Stanford and Bob Hope.
Ranging from the simple purchase of improved or unimproved lots in a subdivision, to the more complicated accumulation of unimproved acreage to hold for future development or anticipation of rezoning for a more intensive use, land is the real estate developer’s and speculator’s playground.
The goal of the land buyer is to own the right property in the right place to comand the highest possible return on investment. Depending on the individual’s investment strategy, vacant land can provide a viable alternative to the ownership of improved income property. Raw acreage presents the investor with an opportunity to diversify holdings, earn high profits and offset the risks of loss from other investments.
Primarily, the location of land determines its potential future growth in value. For instance, land lying within 3-mile area on either side of a major highway, bordered or connected by 2 neighboring communities or surrounded by major developments has high prospects to increase in value over time.
Similarly, the purchase of raw land at the periphery of a community by an individual who wishes to hold the land for appreciation requires an educated prediction for the direction of growth. The estimation of future growth patterns results in the inherent feature that land banking is a long-term investment.
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About
I’m so grateful you are visiting my blog. I think you’ll find it intriguing and that it will be valuable to your financial future.
I grew up just outside of Dallas, Texas in a city called Arlington. My parents, Chris and Debbie Burch, as well as my sister, Shannon Cox, have always inspired me to be a positive light to those around me. I grew up as a dancer and enjoying school with particular interest in biology and mathematics. After going to undergraduate school at Southwest Texas State University, I was accepted into a Physical Therapy program in the Netherlands at Fontys Hogeschool Eindhoven where I met my husband, Anthony Abrajano. We married in 1999.
While working as a Pediatric Physical Therapist, I had two children, Cate and Charley. After 10 years in the field of PT while raising my small children and moving to California, I had a paradigm shift. While PT is rewarding and I adore children, I wanted to find a way to invest in my family’s future and feel secure about it. Everyone told me to invest the max in my 401K, and I did. Boy, was that the wrong choice! I lost so much money in my 401K in 2002 by listening to this mainstream advice. Fortunately, I made almost all of it back very slowly over the next couple of years.
Then preparation met opportunity. My friend, Yuko Rodriguez, told me about Southern California Land Banking. Land banking is investing in pre-developed land in the path of growth based on growth factors such as population growth, affordable housing and large diversified job base.
“All a man has to do to get rich in America is find out where people are going, get there first and buy land.” General Douglas McArthur
OK, well obviously that was long ago; and women can also tap into this form of investment. So I became a land banker. I have invested in three parcels of land at this point and plan on becoming an all American Land Baroness!
Surely, you have many questions which I plan to cover in my blog site. Please feel free to contact me at my personal e-mail address if you’re ready to invest or just would like to further explore land banking: tkcabrajano@sbcglobal.net
My Favorite Charities
I worked at Texas Scottish Rite as a pediatric Physical Therapist for 2 1/2 years, mainly on babies with foot demormities. This hospital provides whatever medical care necessary 100% free of charge to children with orthopedic and neurologically related deformities regardless of ability to pay. I would still be working there if I lived in Texas. If you are looking for a fabulous organization to donate to, please click on the crayon.
The Vick House Project is an opportunity to make a good ending to a sad story. For much of this past year, Americans have heard about the tragic tales of mistreatment and abuse to dogs for the purpose of dog fighting. Please click on "Tank" above to visit the Vick house Project.
I received a proposal from Land Wealth Centre offering a a parcel of land in Gatwick, South of London. I know You have experience about such investment. Can you tell me about the investor that have already make gain from this kind of investment?