Land Banking Explained
Investors who like the idea of investing in the real estate industry but don’t want to own real estate per se can invest in land banking where the property is used as a hedge for a financial investment of a specific sum with the development company for a fixed term at a pre-agreed ROI figure.
The projects can include malls, hostels, apartment complexes, hotels, office buildings, and warehouses. Land banking offers to buy back the property at the price it is projected to be selling for at the expiry date of the investment tenure.
It shares similarities with crowdfunding as investors funds are pooled to develop the project and capital gains are assured to the investors.
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