Land Investment Companies - an opinion
The public has taken to Land Investment in a big way. Where as 4 years ago the only two companies offering Investment Land to the public were Gladwish there are now a myriad of companies that have one, two or three sites in rural locations and who have grand plans and whom claim that they have access to planning consultants of such great ability that they can guarantee that planning permission will be granted in a short period of time - irrespective of the rural location of their land.
Gladwish have offered rural land in many UK locations for many years. Whilst the land has always been in rural locations it has always been reasonably priced. Gladwish have also never claimed that planning permission in these rural locations could be achieved at anytime in the near future.
The companies that have entered the land market in the past year or two tend make up for their poor quality (rural) land with false guarantees and invent Associations to which they belong so as to give them credibility. Entrepneurs who make a fast buck can offer the public guarantees of their money back if the land does not obtain planning permission in a few short years - because the company that has the liability has no assets and the entrepneur will be long gone. I have seen several "Land Investment" Associations - with grand titles and official paper but have yet to see one that offers the public any meaningful assurance. The Associations just seem to be there to cloud the fact that the location of the land is very rural and that the choice of locations is very restricted.
My Advice
Rather than be swayed by glossy marketing, slick sales pitches and empty guarantees of your money back if you do not get planning permission I would advise the following if you want to investigate the option of investing in land.
Visit the site - walk round the site - drive round the local area. What is your gut feeling? Knowing what land has been developed recently in your local area - do you believe that this land is similar. Remember you are purchasing a location, not the marketing.
John Prescott wants the land to be close to existing development - not to destroy virgin land in a beautiful rural location.
As with all property the golden rule is, Location, Location, Location.
As with all investments the golden rule is, if it sounds to good to be true - it probably is.
To ensure that my "UK Land Directory" is comprehensive I have now introduced the new "Investment Land Directory" listing all the individuals and companies selling "Investment Land" that I am aware of. Please advise me of new companies - as new companies enter this market every day.
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Oct 06
