The Perimeter Land Investment Strategy
Towns expand from the centre
As the graphic below shows, cities, towns and villages expand from the centre outwards. How often do you see town or village surrounded by new developments? Town planners also tend not to leap frog the land adjacent to existing development but instead look to use the band of ‘Perimeter Land’ surrounding the town or village. As our company name portrays, this area, in the path of development, is where we believe the greatest chance of achieving substantial profits lie.
Not all land is the same
It is a popular misconception that an acre of agricultural Greenfield land half a mile away or more from existing housing is worth the same as an acre of agricultural Greenfield perimeter zone land surrounding a town or village. This area tends to be closer to roads and services for developers. Perimeter Land Ltd sites are always situated in this zone and are priced accordingly. It is also important to remember that Greenfield is very different from Greenbelt. See glossary below.
Land as a profit vehicle
To make a substantial profit from land investments it is not necessary to attain planning permission for your plot. The greatest increase in the value of the land occurs when it is included in the local authority’s Local Development Framework (LDF) where it is re-zoned from Greenfield to residential development use. It then rises again with outline planning permission and the timing to sell is totally in your hands however most investors sell at the initial re-zoning stage.
The process
1) Potential sites are identified with extensive research i.e. suitability and local planning priorities etc.
2) Once acquired the planning team design the site for maximum interest to developers and based on government guidelines for inclusion into the Local Development Framework (LDF).
3) Plots are then registered with Land Registry Office.
4) Up to 30%retained by Perimeter Land Ltd and/or the land acquisition company.
5)The remaining are then released to private and professional investors.
Glossary
Brownfield
Land previously developed for industrial, retail, transport, or perhaps for residential.
Greenbelt
An area of undeveloped land, reserved for preserving the character of the countryside or to stop towns and villages expanding and merging together.
Greenfield
Land which has never been built upon with the possible exception of agricultural buildings. Within this type there are many sub categories such as ‘agricultural use’.
Why We Chose Greenfield
Perimeter Land Ltd, do not look at Brownfield or Greenbelt land for investment because we believe that the risks and returns associated with these 2 types do not suit our or our client’s requirements. Greenbelt re-zoning is still a relative rarity and Brownfield land requires substantial further investment after initial purchase in preparation for housing. Demolition and clearance are often required and if it has been used for industrial purposes it may be polluted and require decontamination or capping.
Regardless of the volume of new housing to be built on Brownfield land, the fact remains that the availability of Brownfield sites is insufficient. Even if the government manages to stick to its goal of 60%of new development on Brownfield land, with another 3 million more homes to be built by 2020, this means that the Greenfield land lying on the perimeters of towns and villages is needed for around 1.2 million homes.
Greenfield is the type of land in which Perimeter Land Ltd specialise in identifying high profit potential sites.
A Land Portfolio Made Easy
To make the investment process as simple and secure as possible for our investors, Perimeter Land have streamlined the process by using a specialised land transfer company, both to safeguard your interests and facilitate an uncomplicated and cost effective transfer of ownership.
All costs of transfer of ownership and registration of title are included in the total purchase price of the land.
The process for transfer of ownership is as follows:
- We will send you a ‘Buyer Information and Authority form for you to complete and return to us. You will also need to send a refundable reservation fee to secure your chosen plot.
- Our land transfer company will then send you a contract pack, which will include the TR1 (Land Registry transfer document) and other informative documents, including environmental searches etc.
- You will then sign both copies of the contract and the TR1 document and return them together with full payment. Our administrators and transfer company do the rest.
- Your application will then be made at the Land Registry, and once processed you will receive your title deed.