If you’re an investor based in Singapore who believes in buying raw land, then do check out some UK-based raw land investment options by Jardin Smith International. Having interacted with them in, I know that Jardin Smith International is a land investment company that buys greenbelt land in the UK, cuts it up into small plots and sells it to investors.
Now, here’s the catch – UK land that lies in greenbelt area cannot be used for residential purposes unless and until the government rezones it (marks it okay for residential purposes). In normal circumstances, this factor may put people off. However, Jardin Smith retains 25% of the land as its own investment so that people buying the land are reassured that it will perform some acts that will help get the land rezoned.
One thing that I like about the company is that they were candid enough to inform me that the rezoning permission would take 5 to 10 years. So, if you are looking to make a quick buck, this is not it. This is the kind of honest and blunt advice that is appreciated. Once the permission comes in, the land price spirals and can go up to 10 times the purchase price! 10 times appreciation in 10 years makes for a return of 100% per year!
The reps at Jardin Smith convinced me that with cities getting crowded and houses getting cramped in UK cities, people were looking to move to the outskirts. They showed me statistics related to affordable housing leaving me with no doubt that the government is not doing enough to create more affordable homes and that sooner or later, the government will start marking greenbelt land as fit for residential use. Jardin was of the opinion that the 2012 Olympics will give a boost to the UK real estate market.
Their land price statistics also convinced me about the investment potential. They wanted a 10% upfront (credit card swipe would have worked) and I was happy to know that UOB cardholders could pay the balance in interest-free 12 month installments. Well, though I am convinced about the investment potential and the people, I am yet to decide. Can someone help? Thanks.
The above review is just my thought and cannot be considered as a professional advice into your investment decision or whatsoever relating to monetary issues.