Before I get started, let me use this opportunity to welcome you to the month of love, February. May you feel God’s supernatural power this month and have all your heart’s desires granted.
Now, let me dive into the business of the day. Evidently, a lot of people hear the word “land banking,” but only a few know how they can profit from it. And when I say profit, I mean how you can “create transferable generational wealth” from it.
Now, what is land banking?
Land banking is simply the act of buying land with the intention of holding onto it for a while before reselling it for a profit. Hold on to the keywords in that definition: “intention of holding on to it for a while.”
You will hear people say they do land banking, but then they tend to sell it off two years down the line. Obviously, they may have made some teeny profits, which you can’t in any way compare with someone who holds it for 5–10 years or even more.
Below are the following ways to profit from land banking:
1. Purchase land in a location where its value is projected to increase over time, such as in a city that is expanding or a region that is slated for development. Epe & some part of Ikorodu in Lagos, for example, is a premium location.
2. Look for land that has potential for development, such as land that is zoned for residential or commercial use.
3. Buy a piece of land for a bargain price and hold onto it for a while, ideally until the market is good for selling.
4. Research the local real estate market and stay informed about any upcoming developments or changes that could affect the value of the land.
5. Join forces with builders or developers to jointly develop the land so that you can share in the profits while they handle the development.
6. In the interim, you can think about renting out the land for farming or other uses to generate passive income. That’s if your choice of location is still underdeveloped.
It’s crucial to understand that land banking involves risk and is a long-term investment. Before making any decisions, you should conduct a study and speak with a specialist.
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For Enquiries: Call SAMUEL: +2348150350306, +2348189861993
©2023 Samuel Ishau, Lead Consultant, New Wine Realty
