Why rich invest in landbanks?

Vastly, wealthy  land bank  investors come from all different backgrounds. Some made their fortunes in technology, others in finance or manufacturing. It’s quite surprising that a growing number of the richest people in the world are investing in  land banks.

Why the sudden interest in land banks?
We can think of two compelling reasons

1. Diversification

• Diversification is key to any good investment strategy.

• As the upper class continues to grow their wealth, many tend to concentrate in a fewer asset classes— primarily stocks, bonds, and even art. However, this concentration leaves them vulnerable to market fluctuations. 

• For majority of these investors, land banks represents a new asset class that can help them diversify their portfolios. While stocks and bonds can be volatile, land parcels are a more stable investment. 

• Land Banks provides an opportunity for these investors to diversify their portfolios and protect their wealth from the volatility of the stock market

2. Hedging Against Inflation

• The prices of goods and services tend to go up over time. This is due to inflation, which results in the loss of purchasing power. 

• To hedge against inflation, some investors choose to invest in assets that are expected to increase in value at a rate higher than the rate of inflation. Land banks has historically been a good hedging tool against inflation.   

• What’s more, land is becoming increasingly scarce as the world’s population is growing.

• There’s always a growing demand for clear title land, that investors can either sell at higher prices or keep for themselves as a tangible asset to be passed down from generation to generation.