From: Leonard Montgomery 
Newsgroups: misc.invest.real-estate
Subject: Land Investment in the UK - Eight Things Smart Investors Know
Date: 23 Apr 2007 15:10:54 -0700
   posting-account=eyiSoQ0AAAC5vNDB6mA2VN3hz3z0xPJ6


UK land represents some of the best investment land available.  These
eight facts, presented by a land planning and land investment expert,
will tell you what wise investors already know about investing in
land.

1) Investing in UK Land is a real asset

You can see, use, and most importantly, build on investment land.  You
hold the legal title deeds to your investment land as surety.  There
are no complicated concepts in land investment, just a burgeoning
demand for a finite amount of UK land.
2) Investing in Land yields strong returns
A finite supply of UK land partially explains its historically rising
value, and implies it is unlikely to depreciate.  Mark Twain said, "If
something is unable to be manufactured and the underlying demand for
it is constant, then its value will tend to rise."  Demand for UK land
is, at the very least, constant.  The property market increases
reflect soaring demand for houses from an ever-growing population.
Therefore, investing in UK land offers strong returns.  It is
reasonable to achieve the equivalent of 30-35% annually in a 5-year
land investment project.  This equates to compounded returns of around
400-450%.  Such returns are hard to realise with other UK investments.

3) Land Investment is an investment in "the real world"
The value of property assets is clear and transparent.  This is not
the case with all UK investments, such as derivatives.  Even with
traditional equity investments, the average investor rarely knows
whether the equity is genuinely under-valued (buy signal) or over-
priced (sell signal).

Stock market scandals resulting from accounting malpractice highlight
the limitations of the average investor's understanding of their
exposures.  UK land investors are usually already active players as
homeowners, so they already have some market experience.

4) UK Land has a lower entry point compared with buy to let
The price tag on a typical UK property is around =A3200,000.  A plot of
UK investment land that offers substantially larger relative returns
is priced at just around =A310,000!  Remember that the Iron Law of
Investment is diversification, commonly known as "Don't put all of
your eggs in one basket."  Because land investment has a significantly
lower entry level than property, wise investors can more easily
practice the Iron Law.

A typical UK investment requires around =A3200,000 but a diversified
land investment portfolio could be created for less than =A350,000!
Investing in land, with its lower entry point, therefore gives the
investor more 'chances' to pick a lucrative UK investment.  However,
it is by no means essential to build a huge portfolio of land
investments: the key considerations for anyone considering investing
in land are two-fold: choosing good quality UK land, and choosing a
good land investment provider.  The 12 Land Investment Guidelines,
located at http://www.land-investment-uk.com will help you make these
two choices.

5) Investing in Land capitalises on UK's housing crisis
Investing in land is the most lucrative means of capitalising the UK's
housing crisis.  Supply pressure is being felt in both affluent and
less affluent areas up and down the country.  The number of UK council
homes has fallen sharply over the past 25 years, while homes rented
from social landlords has increased dramatically, and owner occupation
has doubled.

The combined effects of the above factors make investing in land a
sensible choice when allocating assets in a UK investment portfolio.

6) Investing in land is passive and hassle-free
All UK investments demand careful consideration when entering and
exiting the investment.  However, some UK investments also demand
active management during the life of the investment (e.g. equity and
commodities trading).  Land investment, on the other hand, is entirely
passive, which makes it popular with many investors.  Investment land
is easily managed and investors should be fully apprised of their
investment progress.

7) Land Investment has low volatility of returns
Volatility of land investment returns is an important consideration.
It refers to the extent to which the value of the investment rises and
falls in its lifetime.  Less volatility makes it easier for the
investor to know their wealth at any given time.
UK Land investing is not volatile and is actually relatively
predictable.  The value of a land investment tends to follow a linear
path: in a 4-5 year project, the value of the land investment in years
0-3 will tend to rise relatively modestly by the effect of 'organic
growth', (what we commonly term 'inflation').  The land investment
typically rises sharply in value during years 4-5 (should permission
to build on the land be achieved).  The land investment may be
divested of at this time for maximum profit.

The wise investor knows that they can more easily estimate the future
value of their portfolio with land investments than with other asset
classes.  The land investor can plan for critical future funding
requirements such as school and university fees, retirement planning,
and health-care expenses.  More concrete future planning may not be so
easy if the investor has exposures that are more volatile than
investing in land.

8) Investing in land creates real wealth by compounding returns
As we have seen, returns of 400-500% in a 4-5 year project cycle are
entirely possible if an investor chooses good UK land and an
experienced land investment provider.  Therefore, an initial
investment of =A310,000 could grow to =A350,000.  If these returns are
then reinvested into another land investment project with comparable
returns, then the initial land investment could grow from =A310,000 to
=A3250,000.
Some of the most successful individuals are enjoying the financial
benefits from compounding in land investment.  This approach requires
a slightly longer-term view, but the rewards are significant.
Compounding in land investment can offer more than just good
investment returns: it can create very substantial wealth!

For more help navigating the many opportunities and pitfalls in Land
Investment UK, including
The 12 Land Investment Guidelines please visit http://www.land-investment-u=
k=2Ecom