What is land bank investment?

It is really important to know what a land bank investment really is. This is something that many people are doing each year, and they are making a huge profit.

Land bank investment is the process in which land is usually purchased with the intent of holding onto it until such time as it is profitable to sell to others for more than was initially paid. The value of land may increase upon the supposed exercise of an option to develop, planning permission, conversion for use as housing, and/or potential extraction of raw materials.

The question is how do land bank investment fraud really works? If you are purchasing a land, there isn’t any chance of getting scammed, is there?

Is a land bank investment a fraud?

Commonly a company has ownership of the large piece of land, then it is divided into smaller individual plots for sale to investors. Because the land is undeveloped and may not have planning permission, the returns could be huge.

The land bank investment fraud starts when the scammers are purchasing really cheap land with no value. They then get investors to invest in the land at normal investment fees. But the land doesn’t get developed, and you will not get any profit back. In fact, you might not even purchase real land.

Often, first contact from a land banking company comes via a cold call, but it could also be via an email or letter. The lure of the lucrative promised returns can sound too good to be true. These land bank scams are going way back. So there are thousands of people still struggling to land bank investment.