18-05-2011, 01:26 AM
Some critical considerations in investments is; liquidity, holding period and how much power you have over your investment.
Land banking works for you if you are able to wait 19years (longest holding period recorded according to the article)
So this investment is rigid in terms of liquidity and holding period.
When we invest in local property, we have a certain level of control/comfort. It is our home ground, we know what the rules are.
We know the ins and outs of buying a residential property. Also, it is relatively liquid compared to other parts of the world. Just like a business
man would want to invest in his own business, a property investor would want to have home ground advantage. On the other hand, god knows what will happen to that vacant piece of land in a faraway place.
Land banking works for you if you are able to wait 19years (longest holding period recorded according to the article)
So this investment is rigid in terms of liquidity and holding period.
When we invest in local property, we have a certain level of control/comfort. It is our home ground, we know what the rules are.
We know the ins and outs of buying a residential property. Also, it is relatively liquid compared to other parts of the world. Just like a business
man would want to invest in his own business, a property investor would want to have home ground advantage. On the other hand, god knows what will happen to that vacant piece of land in a faraway place.