Landbanking involves buying plots of land and "waiting" for the developers to buy over the land and thus making the investors a hefty profit.

Many many people has become very rich because of land. However don;t be blinded by the "getting rich part" as it is not without its flaws.

There are people who had made tons of money investing in land, but there are people who bought land that even after 20 years has not "reached" its full potential. So the primary risk in investing in land is time. There are alos factors like political, geographical risks and economical risks involve but for the sake of keeping it simple, we shall only discuss about the risk involving time, which I feel is the most important.

The risk for a Singaporean to invest in land is also exposed to foreign exchange risk on top of the time needed for a plot to "exit" (That is to be bought by a developer)

The land banking houses in singapore, usually tells you that you only need to wait 5 to 7 years. This is true for many cases but there are also some that has exceeded this time period. So one has to be very careful when buying the "most desirable plot of land"

As long as the world's population continue to grow and there are sufficient resource to support this growth, Land prices will continue to rise in the long run. The fact that this is true make land an highly attractive investment. But one must ponder and must be willing to part with a sum of money that will be stuck into a plot of land that may or may not even"exit" in his lifetime. In this case other forms of investments may be more approriate. Investing in land like any other investments requires you to establish your objectives and your time horizon.

There are land banking consultants using land banking as an instrument to plan for education or even retirement. My questions for them if, what if it does not exit on the 7th year when I need the money. What if it exits only on the 10th year? Do I tell my son to wait 3 years before going to university?

Personally I disagree on using land banking as a tool to plan for something definitive for the future (i.e education planning). Land banking cannot provide any form of guarantee on when it matures unlike unit trust investments or insurance plans. For these objectives there are better suited products and instruments. As for retirement planning, I think it can be still be suitable if the investor as time horizon of 20 or more years to retirement age.

Nonetheless, land banking is highly lucrative and you can become rich just by investing into land.

If there is anyone who would like to come listen to a Land Banking Awareness Talk by Walton International. There's one coming this weekend. Date: 21June2008 Venue: Orchard Le Meridien, 3rd Floor, Margaux Room Time: 2pm

Surely there will be selling, they will definitely not pass up the chance...

PP (profitable plots) were having roadshows at at least 2 shopping malls which I visited over the weekend. At least 3 well-dressed "agents" there to speak. Surprisingly I walked really really close, thinking they would at least come speak to me, but alas they didn't (i'm really insulted haha).

One of the posters said that UK land has increased in value by *1827% over the last 25 years!! That really caught my eye I swear. It's like buying something so rare (nowsdays) & if you keep it well, imagine the returns...! But I'd agree with lioninvestor, it will suck if you get cheated (buy from reputable managers everyone) or even paying more than you shld.

*If I din rem the figure wrongly, ard there la.

it's kinda expensive for me...
i have 3 friends who pooled their money together to buy a small plot of land (they claim its around the size of 1/4 of a football field) in canada if i remember correctly...

Walton has a pretty good track record and its a much bigger and established company than what most ppl know about it. Unfortanately its website doesnt do justice due to the lack of information. I do have some information about the recent exits and I must say that its pretty good and the investors must have been happy with the returns. If anyone is keen to take a look at this document, you can contact me via MSN: Kelvintcw@hotmail.com or email me at kelvintcw@gmail.com.  I have a pdf of how land banking works as well.

Icic in that sense, perhaps Profitable Plots did alot more marketing in that aspect.
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Contest theory: More entries = More chances - Concept of Probability.
Time & Tide waits for no Man.

We could compare the portfolio returns from these companies. Sometimes when i think of investing in land banking, it is really innovative and the seminars are exciting. Not to mention the widespread advertising on buses and use of ESPN soccer hsots to support  the campaigns

but down to the investment dollars ... ... is the land title, the property ROI worth the wait, and the terms and conditions are really up to the companies to honour. I think the eager consumer has to know they are helping these investors hedge against their risky investments into these cities. Which sounds like a good business model for the company, but not as exciting to the end consumer

When taking up land banking as an option, do consider if these companies are oriented to ensure the best investment return and assurance to their investors

Walton International by far is the best in the land banking industry because of the quality of service and results they have produce. Its projection on the returns is 15-20% p.a. and its audited track record is a good 23.55% p.a.
Walton has land in these few areas, Texas and Arizona. Here is some write-up to share.   

The information about Arizona

1)  Future shock: State Leaders Race to Prepare the Copper State for Explosive Growth 
"The US Census designates these areas with cross-region commuting patterns as combined statistical areas, something that the Megapolitan Report says may happen in 2020 decennial census. The Sun Corridor will be one of the 10 metropolitan areas in United States. By 2030, it could be home to 10million people and 4.5million jobs making it a potential hotbed of wealth and productivity.... That would require a whole new level of dialogue and cooperation between the five councils of government, 6 counties, 57 municipalities ... the state is just at the beginning of that process ... "

( source: http://www.azbusinessmagazine.com/azb/2008/az_business_magazine_august_2008/azb_august_2008_1.html)

2) "...Arizona is one of the nation’s most urban states, and now it includes one of 20 “megapolitan” areas in the U.S. People have predicted for 50 years that Phoenix and Tucson would grow together into a giant desert conglomerate. That possibility has been seen as exciting, intriguing, and distressing. While a solid city along Interstate 10 is unlikely given the diverse land ownership in central and southern Arizona, the two metro economies are already merging."

(http://www.asu.edu/copp/morrison/megapolitan.htm)

3) Taylor Morrison Moves Home base to Scottsdale, Arizona 
" A large, national home builder has relocated to the Valley, aiming to serve its largest housing market. Talyor Morrison Inc, formerly of Bradenton, Florida, moved its headquarters to Scottsdale, Arizona..."

( source: http://www.bizjournals.com/phoenix/stories/2008/07/28/daily62.html )  

4) AZ 347 Widening Gets Full Funding 
" At a special hearing in Tucson, the State Transportation voted unanimously to approve the revisited list of projects for the state that now included nearly $208 million to add two new land to AZ 437 north of Maricopa, and $35million for an overpass on AZ 347 at the Union Pacific Railroad crossing. Other major projects in Pinal County inclid the widening of I-10 from Riggs Road to I-8 and the construction of a new North-South freeway near AZ Highway 87.
( This freeway passes by Walton's Orchard Hills property)

A plan for a public-private partnership project on the Val Vista road corridor, south of the Ak-Chin Community in Maricopa's planning area also made the final cut.... "
( As this freeway extends eastwards through Casa Grande and Coolidge, and it will pass by Walton's Vista del Monte project)

( source: http://www.azacreage.com/in-the-news.php)

5) Arizona State University is Thinking Big, and it isn't Expecting Trouble Attracting Students
" ... ASU already educates 64,000 students, up from 50,000 in 2001, and projects it will have more than 90,000 by 2020... Currently is ranks 3rd behinf the University of Florida and Ohio State University... "

( source: http://www.guardian.co.uk/education/2008/jul/29/internationaleducationnews.highereducation )

6) Arizona Growth Machine will be Back in Business by 2010
" The economic recovery in Arizona is expected to be subdued over the next few years, but the state's growth machine should be accelerating again by 2010. That's according to the latest issue of Arizona's Economy, published quarterly by the University of Arizona Eller College of Management..."

(source: http://www.bizjournals.com/phoenix/stories/2008/07/21/daily30.html)

7) Pinal Comprehensive Plan Available for Review and Input
" ...Arizona continues to grow, and much of this growth over the next 30years will occur in Pinal County. The county has been working during the past 15months to create the Pinal County Comprehensive Plan.... "

( source: http://pinalcountyaz.gov/Departments/NewsInformation/Lists/News%20and%20Announcements/DispFormA.aspx?List=a034c985-f072-4734-926b-9dcdba43664a&ID=749 ) 

Information about Texas: 

1) Austin 8th Fastest Growing city in USA Between 2006 and 2007
"Austin added 18 000 new residents from July 2006 to July 2007, making it the 8th fastest growing city in the nation during that period. Austin's population in July 2007 was 743,034 up 2.4% from the prior year. Austin was the 4th fastest growing city in Texas during that period, falling behind Houston, San Antonio and Fort Worth. Four Austin suburbs were among the 25 fastest growing city in Texas, according to an analysis of the Census data by Capital Area Council of Government. "

( source: http://www.bizjournals.com/austin/stories/2008/07/07/daily32.html)

2) Texas Economy Booms: 238,700 Jobs Created in 2007 
" From Main Street to Wall Street, the economic news gets more depressing every day, but things could be worse: You could be living outside of Texas. The government reported that 62,000 jobs in June, the 6th consecutive monthly decline. Texas, meanwhile, keeps purring along (See chart). The economy is slowing, and corporate layoffs are rising, but the state remains in positive territory by most measures.
.....Texas employment has increased by 238,700 jobs over the past 12months..... Retail sales rose 5.6% in Texas, in the last year, 3times higher than the nationwide rate .....  The energy industry is booming, riding the wave of skyhigh oil and gas, producing scores of new jobs in Texas and abroad..... Teas exports grew 7.2% in April, compared to 3.3% increase for the nation.

( source: https://www.istockanalyst.com/article/viewarticle+articleid_2375198.html )

3) Long-term Economic Outlook Brighter than Some Foresters Suggest.
" ... Texas, the Lone Star State, is forecast to achieve compounded annual growth rates that exceed those of US... Texas economy growing faster that the nation as a whole. In 2030, the population of Texas is forcast to be approximately 36.3million, an increase of nearly 13million people from 2007. During this same period, the USA will likely see an additional 68.5million residents..."

( source: www.mywesttexas.com/articles/2008/07/20/news/opinion/columns/ray_perryman/perryman_7_20.txt)

4) Nation looks to Texas's Resiliency
"... Texas economy continues to grow as the nation struggles under the weight of declining housing markets....Texas has added nearly 85,000 net new jobs since January 2008. So what's going on in the Lone Star State? Texas is reaping the benefits of a relatively stable housing market in recent years. According to  the S&P/ Case-Schiller composite index for 20 large US metro, home prices climbed an average of 107% above their January 2000 levels before the housing bubble imploded. ... In Dallas-Fort worth, prices increase topped out at just 27% a quarter of the national average..."

( source : http://www.bizjournals.com/dallas/stories/2008/07/28/editorial1.html?ana=from_rss )

5) Economist: Austin will Recover Faster than the Rest of US.
" In the coming year, Austin will perform the rest of the country in job growth and in the health of its housing market, ....Austin will add 8,500 new jobs between now and August 2009, despite a negative job growth across the country. The local housing market will turn around faster than the rest of the country by next summer. "

( source: http://austin.bizjournals.com/austin/stories/2008/08/18/daily13.html)

Hope you find this information useful.  = )

Profitable Plots have an aura of respectability about them. They can afford to create this illusion by overcharging for piecemeal plots on cheaply acquired sites. They are still selling plots on a site they call Concorde Village (remember how Concorde ended?) which is better known locally as Hounslow Heath. In addition to being home to numerous protected species of wildlife, this site was previously owned by Taylor Woodrow. Both of these facts should give pause for thought; the first because the environmental impact of any proposed development would cause the local planners to impose severe restrictions on it (if, indeed, it were ever allowed in the first place), and the second because it should be pondered why a developer as large and as seasoned as TW would give up in their quest to get the site re-zoned. 

Another factor, which initially seems reassuring, is that PP reserve some of the site for themselves. It conveys the impression that they have a vested interest in the result. However, the truth is that they have already made such a substantial profit that their business model does not require this, or any of their sites, to get a change of use in order for them to succeed - as you can see from the endless TV campaign, they already have a bigger advertising budget than most MNCs!

In the case of Concorde Village, the land they have reserved for themselves is the portion most likely to get planning permission. Hardly equitable, methinks.

The reason they operate in Asia, and not the UK, is for the simple reason that the MAS have not yet woken up to the fact that this is the biggest con since Mr Ponzi set up in business. At the moment there is a pavillion in Raffles Place advertising that land in Concorde Village is projected to rise by 250% in 3 years! Where is the rationale for such an outrageous claim? Why not 249% or 251%? 

Short of a seismic geological event, I fail to see how it can rise at all! (Geddit?)

My certainty about this is projected to rise by 250% in the next 3 years.

The bottom line is that if Taylor Woodrow could not make it work, with all their lobbying ability, connections and experience, what hope is there that a company operating outside of FSA scrutiny (that's why they're over here) can pull it off?

Unlike Walton they have no track record and, in the view of this author, no principles! Walton aren't perfect, however. In my experience they confuse rates of return (by implying average returns are compound returns) and the majority of their consultants don't own any of the product. But, that said, they do have a genuine track record and would be my choice if I wanted to speculate on currencies and land prices simultaneously. 

By the way, I don't work for Walton. I am a wealth manager who was asked to evaluate these companies on behalf of a client. In the end, he did not proceed with either company.

Anyone who is still fascinated by the concept should get busy on Google. Caveat emptor!

Thanks for giving us an insight to these two companies offering land banking or land investment. As such can i put it as investing in land banking or land investment is a particular field where one should be fully equipped with knowledge before stepping on the battlefield? In that case, is land investing in UK feasible or practical? Or would alternative countries be more suitable? As my friend mentioned casually to me before that UK land prices are already so expensive what makes you think that the land prices will shoot up rocket high allowing you to earn a tidy profit? that got me thinking... Any comments anyone?
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Contest theory: More entries = More chances - Concept of Probability.
Time & Tide waits for no Man.

Dear Singapore

If you are offered land in the UK or property in some Australian metropolis, consider this; there are not any buyers locally who will pay the silly prices being extracted from you!

And anyone rash enough to buy in Dubai might also be interested in buying the remaining shares in pets.com!

Every developer worth his salt has options on land. The good stuff was taken years ago! Without local expertise you are simply gullible. Nobody is sharing an opportunity with you. The unscrupulous are fleecing you! All that is offered is the dregs of the barrel; the crap that builders/developers wouldn't bother with!

But being a small island that is short of land, Singapore is unduly vulnerable to the vultures that prey on its sense of overcrowding. Use your common sense and ask why these 'gems' are being offered to you. Consider whether they really can be a such a good investment if they are still available, 6,500 miles from where they are located? 

Profitable Plots are profitable - but not for those who are stuck with them! 

You have been warned - mind you, that hardly affects smokers and I daresay it won't deter the greedy.

Yours faithfully,

Harry Potter
HOGWARTS

thanks harry potter for the insight~

Personally thats the reason I feel why our company is partnering Walton in order to provide an alternative and non-corelated investment as part of the whole investment portfolio.

Btw there is a new launch, waiting period is shorter, between 2-4 years :)

I know this is an old thread. But I just want to commend Walton for their professionalism and support for their customers. I entered into one of their projects last year, and I am growing in confidence that it will be in good hands. If I remember correctly, my consultant told me they haven't lost a single cent of investor's money for the past 30 years, and it is actually possible to double your investment in about 5 years. Honestly, I was skeptical at first, even after I invested. But after a few rounds of updates about my investment, it is quite clear that Walton delivers what it promises.
If any one is considering land banking as an option and needs some assurance from an existing client, I'll be glad to help. If not, I can refer you to my consultant. my email is m33k33@gmail.com
Cheers