Strategic Land Investment Versus Stock and Bond Markets
The performance of stocks, bonds and REIT (real estate investment trusts) is based in part on the companies they represent and in part on the general market trends. This has proved to be unsatisfactory for many investors in recent years because, net-net, these types of investments have shown little global growth amid a sea of financial volatility.
Land Investment
An alternative, strategic Land investment and investment, attracts disenchanted investors because, simply, such investments can exceed the securities traded on the London Stock Exchange, the New York Stock Exchange, SEHK and other commercial organizations.
What makes this difference? Why would an investment in land be advantageous over something as seemingly similar as a REIT? And the overall health of the economy does not affect the demand for land in a manner similar to the demand for stocks. These are important and natural questions that are best understood when considering the following premises:
Strategic Lands versus REIT: Most real estate investment funds have commercial properties, such as office buildings, shopping malls and warehouses. Strategic land, however, is mainly composed of non-constructed but mature surfaces for municipal reuse designations. The strategic land fund, a conglomerate of investors working in partnership with land acquisition and development professionals, will buy land and improve its value in a number of ways, such as rezoning and infrastructure development ("land assembly"), and then will sell the property when its value is sufficiently increased (often within two to five years).
Strategic Land Investment
Strategic Lands versus Stocks and Bonds: Investors in traded securities follow the trends, which often replace the intrinsic value and value of individual firms. REITs, also traded in exchanges, are subject to the same generalizations. But strategic territorial values rise and fall in the insight of investment specialists: how and when to buy a property, its success in rezoning, the ability to build profitable infrastructure and identify the optimum time to sell.
Strategic land in relation to the general economy: the general economy may be stagnant, although specific stretches of land at selected locations could be highly desirable due to specific factors in the area.
These are the reasons why the UK's strategic land investment specialists have great value for their investors. But before embarking on a strategic land investment, talk to your personal financial advisor who understands your own investment goals, terms and tax considerations.