Land ... better than bricks?

rjgb

Hello,

Does anyone have any opinion on whether it is currently a good time to speculate by buying land?

Clearly house prices are falling or stagnating at the moment. I believe housebuilders are struggling to sell properties, since no one wants to take the risk of buying a house/flat that may very soon afterwards drop in value.

The upshot could be that there is now less demand for land (from housebuilders), meaning that land prices are lower than they might have been, say, 2 years ago.

The government wants to build so-many-thousand more homes in the next X years. So, once house prices have settled at a lower average in the next 12 months or so, and home buyers and housebuilders have regained confidence in the market, demand for land should rise again and prices should go up.

Would this seem like a reasonable argument?

Anyone in the know or have experience of buying land as an investment?

Any comments much appreciated.

Thank you!
R

poppysarah

I did hear something worrying the other day. I think they were talking about improving/extending the metrolink.
They reckoned if it didn't get done soon steel would be too expensive to allow it to be done. This'll be the china effect and the fact steel doesn't grow on trees.

Perhaps in the future the only houses being built will be truley ecofriendly and not use bricks...
In which case land that can grow trees will increase in value.

rjgb

Yes,

I understand that the Metrolink extensions have finally been given the green light as the government has now signed off the £575m required.

And yes, perhaps investing in a "copse" wouldn't be such a bad idea! Stops people building on it too, which I'd be more than happy about.

On the other hand, anyone got any thoughts on whether buying a brownfield site in a town might be a reasonable idea? Would you suggest buying land with planning permission or without?

R

rjgb

Hah! :rolleyes: In what capacity have you received calls from land companies, if you don't mind me asking? Are you an investor/speculator?

poppysarah

Brownfield is more likely to have building allowed on it. But huge complications when soil is contaminated. I can't see environmental laws easing up or it getting cheaper to dump stuff.

lostinrates

Agriculatural land is bouyant too, certainly here.

rjgb

By "buoyant", do you mean the value is high and likely to remain high (i.e. floating), or do you mean it is a safe investment (i.e. it won't sink)?

Sorry - bit of a "lingo dunce"! :embarasse

R

maninthestreet

They still make bricks, but they don't make land anymore.

lostinrates

rjgb wrote: »

By "buoyant", do you mean the value is high and likely to remain high (i.e. floating), or do you mean it is a safe investment (i.e. it won't sink)?

Sorry - bit of a "lingo dunce"! :embarasse

R

I mean, its high now...(£11-14K a acre is eyewatering to me) so people are investing in it and, IMHO its likely to be a good logterm investment. I think all property is a decent longterm investment, I just don't think its the right investment for all people, or that the current system is fair. (Note just because I don't think its air or right, doesn't mean I think it shuld or could be fair or right).

I'm also surprised at how many new farmhouses have sprouted round here in the last couple of years. Not saying its right or wrong just surprising.

Had to stop earlier but wanted to add: it will be interesting to see what agriculatural land brings after this year's harvest, and harvests abroad. Bio fuels have had an impact, global drought and commodities markets.

tradetime

maninthestreet wrote: »

They still make bricks, but they don't make land anymore.

Yup, stopped doing that quite some time ago

tbs624

maninthestreet wrote: »

They still make bricks, but they don't make land anymore.

It's funny you should say that - just 2 days ago Business Times Online carried the report that one of Britain’s biggest brick makers is closing two of its largest factories, because of the slowdown in the housing market :
http://business.timesonline.co.uk/tol/business/industry_sectors/construction_and_property/article4092430.ece