What is Land Banking?
Land is widely regarded as a great asset for investment. This is because it is considered one of the rare assets that has a value which usually appreciates over time. This has led to the concept of land banking gaining considerable attention over the past years. Rather than investing in stocks or currencies, investors place their money in land. Many of these investors have no intention of developing the land but only want to hold onto it until they can find a buyer who offers them a better price. This is the basic idea behind land banking.
There is no dearth of undeveloped land in Australia. This has caught the interest of investment companies and private investors as well. They can purchase undeveloped land and tie their money up. It may take some time for the investment to pay off, but the return could be substantial. The fundamental concept is similar to the idea of keeping your money in a bank and earning interest income on it. The investor withdraws the funds when the original amount has grown substantially. This is why it is known as land banking.
Generally, land banking companies have areas in the suburbs and just outside the city for sale. These are areas most likely to experience urban development in the future. Hence, the value of the land can increase multiple times over the course of a few years. Land bankers invest their money in the undeveloped land available for purchase with the expectation that developers will be willing to pay handsomely once the area is being developed.
Land Banking Finance
Arranging the finance needed for land banking can sometimes be a hassle. Traditional lenders might not be too open to the idea of lending you money only to have you tie it up in a piece of undeveloped land. This is where ALC Commercial can help. ALC Commercial’s loans are tailor-made to your needs and can be used for a wide range of reasons. We provide business loans without the same stringent requirements as the banks. In fact, you can qualify for a loan even if you have bad credit.
If you are interested in commercial land banking, call ALC Commercial today. After a quick phone conversation, our business loan experts will be able to let you know what tailored business loan options are available to you. ALC Commercial’s loan process is fast and funds are delivered quickly, so you can act fast on business opportunities.
If you are interested in land banking, call ALC Commercial now on 1300 886 996 and find out your business loan options today.