Skip to main content

The Best 10 Tips on How to Use rockbird media to Grow your Business

Land in the bank: Why future development sites are the perfect port in a storm



Land in the bank: Why future development sites are the perfect port in a storm
Jack Brown from Indonesian property brokerage Invest Islands outlines the advantages of land banking in the current climate.

Invest Islands
Torok Beach in Lombok, Indonesia.

Invest Islands
Torok Beach in Lombok, Indonesia.

Invest Islands
Torok Beach in Lombok, Indonesia.
When it comes to finding the perfect port in a storm, what could be better than a plot of dry land?

Even in these unprecedented times when Covid-19 has markets rising and falling like a tempestuous ocean, land banking can potentially be a safe sanctuary for your money.

Often overlooked, the practice of land banking allows developers and investors to secure sites for future projects early in potential growth areas.

The purchase of undeveloped land is relatively low-risk so long as you complete the necessary due diligence.

What is Land Banking?

The investment in vacant land that has the potential to increase in value.

What are the potential drivers for valuation increase?

Normal market annual growth.
Future increased yields in the site's development zoning, use and/or density eg. Higher value usage.
Increased demand due to increased population or tourism growth.
Infrastructure improvements such as services, roads, highways and airports.

Source: Invest Islands

Why land bank?

An empty plot of land bought a decade ago will have changed neither in size nor shape, yet land is the portion of a property investment that has the potential to appreciate in value.
Historically, the land component is often seen as a hedge against inflation.
Often the land component of a property increases at a greater rate than the improvements that sit on top of the land.
Improvements such as buildings can often decrease in value over time and can eventually become commercially unviable
Often the properties with higher land value as percentage of its total worth has the potential to increase at a higher annual rate.
Since the novel coronavirus was declared a pandemic, there has been a trend in real estate enquiries looking for safer and lower risk investments to invest capital.
How do investors know if a site is suitable for land banking?

According to Invest Islands, the strategy for individual private investors is to find a location in the early stages of development - a place where you can still purchase land at relatively low prices before the wider world perceives its potential value.

Dimensions - The size and shape of a plot could determine whether it lends itself to development.
Topography - Is the land able to naturally accommodate services such as sewerage or will pumping be required?
Obstacles - Is there any part of the natural landscape that would affect future development?
Neighbourhood - What properties are most prominent in the surrounding area? Is there a type of development that is likely to be more suited to what is already there?
Population Growth - Is the property located in a potential population growth corridor?
Tourism Growth - Is the property located in a potential tourism growth corridor?
Zoning - Has the property the potential for improved change of use eg from farming to housing?
Infrastructure - Are there plans for future highways and airports as examples?
Near Beaches or Natural Water Ways - Located near beaches and natural environments of attraction eg views, beach access etc

The Indonesian island of Sumba. Source: Invest Islands

What is the exit strategy?

Once you have determined the time is right to sell your land bank, the exit strategy can often be one of the below three options:

Sell all or some of the land to a developer
Develop the land yourself to realise both the land value and developers profit
Co-Develop with a developer partner to realise the land value and share developer's profit.
How to land bank?

Undertake your own due diligence, seek independent professional advise, negotiate and purchase your land banking investment.
Often investing solely can be limited by your budget. By investing with a group like Invest Islands allows you to take advantage of its experience and participate in land banking from as little as $35,000 USD.
Click here for more information about Invest Islands.


Anas Moukhlis
Invest Islands Marketing Director and Sales Executive
+852 2499 9189
Email this Contact
Click here to view the Invest Islands website
Invest Islands Land Banking land banking Indonesia land banking Lombok Indonesia land investment Indonesia investment Indonesia real estate news asia Anas Moukhlis Invest Islands Lombok land for sale Land bank investments Lombok Indonesia Indonesian real estate news asian real estate news property news asia

dea tulak |


Popular posts from this blog

The Best 10 Tips on How to Use rockbird media to Grow your Business

  Photo credit: rockbird media - Bespoke Meeting. “Your company can grow to its highest potential by investing in numerous summits and conventions. To identify the business solutions you require, use innovation and keep up with emerging industry trends.” Business owners have many different tasks to juggle on a day-to-day basis. One of those tasks may be creating and publishing content for their website or blog. If you're feeling overwhelmed by the task, or don't have the time to do it yourself, consider using rockbird media. Rockbird can help you create an online strategy that will reach new customers and grow your business. Plus, our team of skilled professionals can take care of all of the content creation for you. So what are you waiting for? Contact us today and let us show you how we can help your business rock! Are you looking for a way to take your business to the next level? Rockbird media can help! We are a full-service media company that can help you with everything f

How to speed up HP LAPTOP and speed it up|contact hp support

Speed is a major concern in HP laptops, like any other laptop. If your hp helpline number is running slow, learn the basic steps here to make your hp contact number +1-800-673-8163 faster and quicker. Below, you will find steps with complete instructions to speed up your HP laptop, if you want a technician help from professionals, use the hp support phone number to reach the best help desk. Either your laptop is new or old, the most important thing is that you need to update your laptop with the latest OS, or the update is fully installed. Call our 24*7 HP Helpdesk number 1-800-673-8163. Find support options like Chat, Phone Support or email helpdesk specific to your HP products. Looking to Contact HP helpdesk? Or Need support with your HP device. Don't panic, Contact us & let our HP helpdesk support specialists to set you back up. Microsoft Windows 10 is a default part of all new HP notebooks in 2018; so it is not enough to have Windows 10 OS on your new laptop. When Windows i

Hearing Aid Brands - Ashclinic

5% of the world’s population suffers from hearing loss. Helen Keller once said, Blindness separates people from things; Deafness separates people from people. Not being able to hear your loved ones is the most traumatic experience, and We at Atharva Speech & Hearing Care Pvt Ltd understand this and work hard everyday to provide you with end-to-end solutions so that you can experience the beauty of hearing your loved ones. Atharva Speech and Hearing care is the hearing aid service provider with hearing centers spread all over Mumbai and Goa. Founded in 1998, Atharva speech and hearing care have more than 22 years of experience in treating hearing loss with different types of hearing devices., Atharva Speech & Hearing Care Pvt Ltd is known for treating it’s patients with high quality services and with utmost care and warmth. You experience hearing loss, when you are not able to hear sound partially or completely with both your ears. Hearin