Land investment is a good strategy because the value keeps increasing: this is true globally. But, on the other hand, the cost of acquiring land, as observed, always goes up and hardly ever comes down. Land is one of the assets that have the potential to appreciate over a longer time, so investing in land that has high development potential at the current or lower market value ensures maximum returns to the investor.

You can decide to make improvements on the land which will make it more valuable. Value addition to the site is possible by obtaining property development approvals and then, over time, proceeding with property development. Value addition makes the land more attractive for developers, who may be willing to pay a premium for it. Alternatively, the land banker may opt for financing and continue with property development.

Untapped, vacant land is generally the cheapest type of real estate to be found. It’s not until expansion and development occur that property begins to increase in value. Hence, if you know where to look for great deals on land, it requires minimal start-up capital to get your business up and running. It’s a type of investment that doesn’t necessarily need you to have millions of naira.

Seller financing is essentially the same as “lending money” to the person buying your property. But instead of advancing money to the borrower, you allow them to use your land permanently, and you accept payments for it in the form of cash over several months or years in the future.

When you, as an investor, combine the power of seller financing with your vacant land, it can open doors to many more buyers. Due to the scarcity of “easy money” financing for vacant land properties, land investors can use this to their advantage by charging a higher-than-market interest rate, and many people will gladly pay it.

When you sell your land this way, you will get 100% of your initial investment back almost immediately (first few months of loan closing), and the remaining payments you receive for the loan’s remaining term are pure profit.

The land is relatively abundant and thus cheap in some developing parts of the country like Ibeju Lekki (Lagos State), Akute (Ogun State), Mpape (Abuja). As a smart investor buying this vacant land offers you an easier and more affordable way into the real estate market. 

When you buy a piece of land for the right price, Land banking can be the type of investment you use to keep your money stored somewhere for a while.

Your asset sits quietly in the background, costing you almost nothing and increasing in value.

The land is easier to manage than built-up properties that require being kept in good condition: no utility fees, no tenant problems.

No dealing with problems like leaking roofs, burst pipes, and other hundred issues that come with owning buildings.

Vacant land doesn’t involve any of those things. Once you buy it, it sits there, and nothing happens. No stress!

Land can generate income while waiting for future economic development. A great example is leasing it out to farmers. Land in a rural farming area can give the land investor an interesting income stream when the investor charges land rent for the farmland, which will be used for agricultural purposes by the renter (If it’s fertile land).

You may also be able to harvest the trees through logging on your vacant land with woodlands.You can also sell mineral rights to designate who can profit from the resources on the land; this can generate an income stream while you sit on the ground.

In the real estate investment niche, there’s low competition. Most people (especially those with a lot of investment capital) are focused on the shiny and glamorous aspects of real estate investment – condo buildings, developments, house flipping, multi-units. It’s not their fault; almost everyone is focused there.

If looking to buy undeveloped land, then a major advantage is the smaller competition you will face. You can find the land that meets your criteria in no time, and you can still negotiate to get a better deal time.

One of the biggest reasons you should invest in land is that it is a finite resource. New residential high-rises will continue to be built, but only a limited amount of land is available for ownership. Because of this, owners can be certain that their investment will constantly be in demand as a result of which, its price will continue to appreciate.

Investing in a plot of land is undoubtedly one of the best options for individuals looking to gain high returns with minimal risk.