Where to Land Bank?

There are many downsides to land banking which most of us understand quite well. Obviously not receiving rent is a biggie. I have an opportunity to purchase a nice piece of land in a growing area with a strong possibility for both CG and rezoning. It will be a little hard to hold for 5 years, but I am sure the returns will be strong so I am a bit perplexed. It is not part of my strategy, but I want to know if anyone else does this as part of their strategy?

 

Don't forget you won't be able to claim any deductions whilst you hold it - it's not bringing in an income, nothing is tax deductible. For that reason, I'd like some sort of dwelling on it.

 

land banking can also include buying with house on land and potential for rezoning or deve site, makes sense - income?
if the property has potential for rezoning beware that the timeframe is in no way certain, 5 years could be 10 years, we are talking government/council, red tape, could totally blow out, or worse, not happen

 

Yes that's an important point the 5 years could easily turn into 10, there are a lot of unknowns which is why I wonder if any of the investors on PC land bank as part of their strategy.

 

Yep. Mine are all landbanking with the view to developing later. Whenever that turns out to be. All about 4.5 - 5% yield though.

 

They're pretty solid returns on development blocks