What is 'land banking'?
Although not widely known, land banking is the process of breaking real estate holding and development activities into discrete pieces performed by different business entities. Some entities perform investment functions while others engage only in development activities.
Land Banking enables the investor to affordably purchase land at the pre-developed stage. Once development increases, so does the initial investment. As a fast growing, emerging economy, Holland offers huge growth opportunities.
Land banking - previously the exclusive preserve of the rich and property developers - is fast becoming accessible to those without millions to invest. In times of increasingly diminishing returns on many traditional investments such as interest accounts, stocks and bonds many investors are looking at alternative investment vehicles which may offer the opportunity for much higher yields.
So if you are saving towards a financial goal such as your child's education or retirement, land banking is one good alternative, if not better. It is:
- Low risk (principle guaranteed)
- Good returns
- Affordable
- Tangible investment
- your land cannot be stolen, destroyed or forged.
- AND HOLLAND DOES NOT HAVE CAPITAL GAIN TAX!!!
"So, let's face it. Ultimately, the ideal investment opportunity is one with low risks, high profits and little leg work".
Why Holland?
As part of this process many investors might want to consider investing in "raw" land as part of their portfolios.
Especially The Netherlands has already been interesting for decades, as this small kingdom is one of the most densed countries in the world.(Photo:Future building site in Veenendaal).
The Netherlands (Holland)
Size: 41.528 km2 (incl.7.745 km2 of water)
Inhabitants: 16.300.000
Inhabitants per km2: 392 (!)
State: Kingdom
Coin: Euro
Language: Dutch
Capital:
Holland is a self-made nation. Five times smaller than the U.K., more crowded than Japan, the country has shaped its housing policies across a water bound landscape, limited in everything but the need to plan. National planning, not just for housing but for the conservation of water, land, infrastructure, and forests, is essential to Holland's existence and accounts for its reputation. This creates the opportunity for investors to make something out of their investments.
Picture:The building and the crane are obvious,but the machine on the right isn't, exept if you live in Holland. It is used to ram some concrete piles into our soft and swampy grounds, in order to avoid sinking into the bottom of heavy buildings.These concrete poles are rammed down into the ground deeply,so they will stand on a solid layer of sand, deep below.That's the way we keep our buildings upright here in swampy Holland.
In order to realize structural growth in the Dutch economy, it must be given room and opportunity to develop in the medium to long term. This is something very much provided for in the "Nota Ruimte". This memorandum was presented by the Dutch government in 2004 and is unequivocal in its conclusions, namely that the competitiveness of the Dutch economy must be guaranteed through extensive investment in the years to come.
Global Business Environment Rankings 2007-2011:
In the latest Global Business Environment rankings, published by the
Economist Intelligence Unit (EIU), the Netherlands is in 6th position
for 2007-2011, after Denmark, Canada, Singapore, Finland and the US.
Hong Kong, the UK, Switzerland and Ireland are the remaining four of
the top 10 on this list. (Source: Economist Intelligence Unit, February 2007)
For the Netherlands as a whole, new industrial estates with a total area of 23,000 hectares are to be built by the year 2020, this development programme in addition to a 21,000-hectare restructuring programme. Furthermore the plan adds another 400,000 new house within the next 20 years. And we are not even talking about recreation areas, roads, public transport space etc.
In the coming years, investments in real estate are expected to continue to rise. This is because Dutch institutional investors, private investors and German investors intend to invest more in real estate. Furthermore, investors from such countries as the United Kingdom, Ireland, the United States and Switzerland have showed increasing interest in recent years.
Our criteria for site selection:
- Well-located with potention
- Main road access
- Proximity to other development area
- No history of flooding
- No contamination
