Land-banking, also called land speculation in land economics, is a buy-and-hold investment option in real estate that involves buying land in small or large quantities with the aim of developing or selling it for higher profit when there is substantial increase in value as a result of population growth or municipal expansion in future.
Investors often look for areas that are currently unexplored and undeveloped but are in the path of growth. They then buy a land they feel has the potential to give them exponential returns. Wise investors also get some amount of cash flow during the holding period by leasing the land out to end-users who will utilize the land for the period and give them a monthly lease payment.
Land-banking is a thriving investment option that has been embraced by many an investor because it involves putting one’s cash in a tangible, fixed asset that cannot be broken, stolen or destroyed. Land bankers can grow their returns easily and the rate of appreciation in value is higher than other forms of investments because land appreciates all year round as the demand for housing will keep rising. In most cases, land-banking can be done according to one’s capacity, depending on the market.
The Growing Mistrust in Land-banking as an Investment Option
Despite the immense benefits inherent in land-banking, there is growing mistrust in investors because of the unpalatable experiences some have had with various real estate development companies.
The sad tales of investors paying huge sums of money for pieces of land advertised by the development companies without being allocated any land after several years are now very common. In many of these cases, the real estate development companies folded when they could not fulfil their promises to the investors and the investors were left to bite their fingers.
The spate of such incidents has caused mistrust in investors and put the reputation of the few genuine real estate companies around in danger. But irrespective of the unpleasant experience you have had in the past as an investor, you can still trust Afrihood, a company that is driven by the vision to transform the living standards of Africans one building at a time, and is known for executing projects and contracts with utmost professionalism, quality, diligence, and adherence to stringent norms.
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But why should you Trust Afrihood Land-banking?
We Guarantee Instant Allocation of Land: At Afrihood, before we start selling our estates to investors, we prepare adequately and do due diligence in layout plans and survey planning.
The layout plan helps to identify the division or proposed division of land into plots, roads, open spaces, amenities and other necessary details. It shows all the major features and structures on a piece of property such as the location of all buildings, porches and landscaping features.
In the same vein, the survey plan marks aspects of the property such as elevation changes, and other features that cannot be gleaned by simply looking at the physical property. Through the survey, we know the size and shape of the property, the location of rights of ways and easements, dimensions and distances to the boundary of houses, sheds, fences, utilities, and other features of importance.
Hence, we know the number of plots available for sale in each of our estates per time and number them accordingly. Investors/subscribers are given the privilege to choose from the numbers available. This means that you will get instant allocation of your plot immediately you fulfil your financial obligation. So, we do not have the issue of oversubscription or misallocation of land on any of our estates.
Likewise, you will not be kept waiting until eternity to get your land. Your land is available for you to hold over a period of time and resell or develop it. With many other companies, however, you have to pay and wait for an unspecified period of time which might not come.
We Develop our own Most-modern Infrastructure: At Afrihood, we do not depend on external factors such as the existing infrastructure or proposed governmental developments in the neighbourhood for an increase in the value of our estates like other real estate companies. In other words, we develop our own most most-modern infrastructure.
When you invest in our land-banking, you are buying into a world-class housing estate project that will transform Africa with Smart Communities, Green Communities as well as Efficiency and Wellness Communities as required by global standards.
Afrihood Housing Estates are futuristic, inclusive, functional, sustainable, and efficient communities with life-enhancing features and internationally-benchmarked amenities that guarantee smarter living, and engender sustainability and healthy living.
These include breathtaking ‘green’ buildings, state-of-the-art security and crime detection systems, utilities, portable water supply networks, waste management and recycling, high-tech recreational facilities, natural scenery and gardens.
Our estates are reference points for other developments that will happen in the vicinity and will be the reason the area will develop. This gives us total control over the appreciation dynamics, and most importantly, the timeframe to expect the value appreciation.
Those who depend on external developmental factors have no control over such. As a result of this, the expected increase in value of land sold might take decades to materialize, and in some cases, might never come to fruition due to the instability of government policies.
Our properties are secure and safe for investors: When you invest in our land-banking, you are in safe hands because you are dealing with a company that does not joke with due process. First, our properties have all the required documents such as Governor’s Consent, registered survey and certificate of occupancy (C of O).
Our finances are scrupulously managed by our banks, so your investment is safe and your returns are guaranteed as and when due.
Also, we work with highly qualified, certified, experienced and registered independent structural engineers, who have 100% project success, as consultants for perfect quality control, and our projects are insured by a leading insurance company with full cover in case of force majeure.
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Our land-banking is affordable and profitable: Premised on our vision to ensure Africans have access to adequate housing, you do not have to break the bank to invest in our land-banking as it is very affordable.
It does not stop there. The affordability of our land-banking does not preclude its profitability. Depending on what you choose to do with the land you acquire from us, you are guaranteed high profits as the land will increase in value because of the advanced infrastructure and amenities we put in place.
Land-banking is a lucrative investment if you choose your real estate company carefully. Your investment is safe with Afrihood. AFRIHOOD is your go-to real estate development company either for purchase of affordable luxury properties or professional advice and consultation regarding real estate transactions.
We are driven by our vision to turn Africa into the foremost inclusive infrastructural wonder of the world, and raise the living standard of Africans one building at a time. Taking it a step a time, we’re working to ensure Africans live in secure, functional and beautiful communities befitting for humans, irrespective of their class or financial profile.